Notes On Credit Scoring Companies Essay

1509 Words Jun 14th, 2016 null Page
EWS, ChexSystems and Telecheck are all credit scoring companies, which means they operate under the credit-score-company laws in the US. However, they do not handle your credit rating; they handle your banking history. The EWS, ChexSystems and Telecheck companies are used by other companies and banks. They use the credit scoring companies to decide if you are a viable customer.

What Do These Credit Scoring Companies Do?

Once again, they are credit-scoring companies, but they do not handle your credit rating. They keep a check on your banking history. EWS, ChexSystems and Telecheck receive information from banks and other companies relating to how you manage your accounts. These credit-scoring companies generate a report on how you manage your accounts and your money, which they pass on to companies and banks as per their request.

For example, if you bounce a check, then the company that put through the bounced check may inform EWS, ChexSystems and Telecheck (or all three), and that incident becomes a blemish on your profile/report.

For example, you may overdraw within your bank account. Your bank will inform EWS, ChexSystems and Telecheck (probably all three if it is a big bank), and that becomes a blemish on your profile/report.

What Is The Difference Between Your Bank History And Credit Rating?

It is quite possible for a person to have a great banking history, but a terrible credit rating. For example, if you managed your bank account very well, but had a lot of…

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