Why does a credit bureau charge for a credit report? Credit reporting system evolved more than 100 years ago. Different traders moved from place to place collecting information about the credit habits of borrowers. Over the years this system evolved and with the advent of computers took on a national scale. The 3 national credit bureaus came in to being according to the different areas that they had their business in. the reason why credit bureaus charge for a credit report is that, it is after all a business.
The credit bureau provide a service to the money lending businesses by recording credit history and enabling a score credit score to be calculated for the purpose of the measurement of the credit risk of an individual. It is now in the interest of the consumer to maintain a good credit history and to ensure that the information being reported on his credit report is accurate and current.
For this reason the FACT act and the FCRA introduced laws that entitled the consumer to free credit reports. Without these laws the credit reporting agencies would probably be more than happy to charge you for every single credit report. because of this law they can only charge you if you purchase a copy of credit report through them. Credit reporting is a business and the 3 national credit bureaus are competitors.
This is a good thing as being in competition means that one is constantly trying to out do the other is offering the consumer a better service experience. However, the cost of a credit report from the credit bureau is typically the same from Experian, TransUnion and Equifax which is about $10.50. Some states offer discounted rates to consumers for buying their credit reports. View the table on this page to see what discounts apply to your state. www.crediaid.com/free-credit-report.htm