When it comes to your credit, more is not always better. Many individuals have received a 3 in 1 credit report, which fails to provide the necessary detail to help you fix your credit. A 3 in 1 credit report is basically a combined report from all three credit reporting agencies - TransUnion, Experian, and Equifax. You are required to one free credit report every year, so these agencies have teamed together to encourage consumers to get all the information in one report. Though it might sound good on paper, this actually leaves you with less information than you need.

Credit Rating Agency

A credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations. A credit rating measures credit worthiness, the ability to pay back a loan, and affects the interest rate applied to loans.

Disadvantages of 3 in 1 credit reporting

Accepting a 3 in 1 credit report limits the provided information that would come with individual credit reports. This in effect, simplifies the data collection and you are not burdened with all the specifics from each credit report that would be needed in to facilitate credit repair. This means you won't have the individual details from each credit report that are important in helping you to improve your credit score.

What exactly is the purpose of a 3 in 1 credit report?

The 3 in 1 credit reports looks like a very good plan in theory but in practice it does not work out. The original goal, however, was to make it easier for customers to process the information. The combined report is supposed to give a snapshot of your credit score and thus do away with the need to peruse three different reports. Never cut corners when it comes to your credit because you're going to need all the information to restore your credit.

What is my alternative?

You have probably been offered a 3 in 1 credit report since they are often offered, but hopefully you opted not to get one. Just because the 3 in 1 Credit Report is being pressed, doesn't mean you can't opt for the original single version of credit reports. They allow you to look at each item individually. You will be able to trace any errors on your credit report and start a plan to raise your credit score.

Further, these agencies are required to give you one credit report for free each year, so you have nothing to lose. Having all of this documentation for your files is important, as well. Being able to pick out specifics instead of having to read through merged information in a 3 in 1 credit report will help save you from any mistakes that might occur. After all, this information is the life blood of your financial future and without a clear picture of what is going on; you will have a hard time making it better.