Benefits of a Merged Credit Report
June 20, 2016
A merged credit report is simply a combination of reports from multiple credit reporting agencies.
Normally, when a report is requested from a credit reporting agency, a single credit report is produced.
That single credit report represents the information collected and maintained by a single credit reporting agency.
A merged credit report puts together the information collected by multiple credit reporting agencies.
The purpose of merging a credit report is so that a credit account holder can easily see all of the information that multiple credit reporting agencies have collected.
This is advantageous for one reason in particular. Credit reporting agencies do not share information, and so each one can and will have different information.
Consider a hypothetical scenario where a credit account holder makes a purchase on credit. The seller is the data furnisher providing the history of this transaction to the credit reporting agencies.
If the seller only provides this information to one of the credit reporting agencies, there will be an incongruity of information.
The impact can be dramatic. If a credit account holder is making timely payments to creditors, but data furnishers are not notifying all of the necessary credit agencies, the result may be vastly different credit scores by agency.
Credit agencies that have accurate, up-to-date information will more fully reflect the actual credit score of a credit holder.
This is in contrast to those reporting agencies that do not have all the information, and thus do not have accurate credit scores.
Another benefit of a merged credit report is that the credit account holder can streamline their credit monitoring policies.
Instead of having to run multiple credit reports, a single merged credit report reveals all of the information in a side-by-side format that enables easy comparison.
The format of a merged credit report is essentially the same as that of a single one, only multiple sets of information are displayed. These advantages make merging credit reports worth considering.