Your credit report is a living record of your credit activity and financial history as reported to credit bureaus by your creditors. This includes information such as the total credit that is available to you, the utilization of that credit, lender information, and your payment history. You may also see public records such as tax liens, collection accounts, and information regarding which lenders have accessed your credit history for various purposes such as potentially extending new credit.
The three national credit bureaus are Experian, TransUnion, and Equifax. In addition, there are a number of smaller, regional credit bureaus that collect and provide credit information.
Your credit history and credit score are the means by which most U.S. lenders judge your repayment reliability and trustworthiness. Not having a credit history makes it very difficult for them to evaluate your creditworthiness – which in turn usually means less credit available to you and at higher rates. Having a positive credit and payment history means that you will likely have greater access to more credit at a lower cost.
Any potential lender that pulls your credit information, including MPOWER, will show up as an inquiry on your credit report. As part of that inquiry, there may be a slight lowering of your overall credit score. This impact is temporary, though it can take several months for your score to bounce back up. The U.S. credit bureaus (Experian, TransUnion, and Equifax) can also see if you are rate shopping when you apply for several different student loans during a 30-day period of time. Typically, multiple inquiries in a short amount of time are treated as a single inquiry and will have a relatively small impact on your score. You can learn more about how multiple inquiries affect credit scores by visiting the credit bureaus’ websites. MPOWER obtains U.S. credit information from TransUnion, and the company’s FAQs can be found at https://www.transunion.com/credit-report.
MPOWER reports your loan balance and monthly payment history to the U.S. credit bureaus (Experian, TransUnion, and Equifax) each month. Showing a positive payment history allows you to build a solid U.S. credit history. Other creditors can see this information when they pull your credit history and this enables them to make decisions regarding your creditworthiness.
It can take several months for your MPOWER loan and payment history to show up on your U.S. credit report. Though the U.S. credit bureaus (Experian, TransUnion, and Equifax) can see your information fairly quickly, it can take a few months for them to update your credit file with your new MPOWER account.