Q What are the obligations of using credit information from TransUnion?
A Our clients are responsible for notifying consumers upon application, default and account termination for consumer credit. Clients are also expected to take reasonable steps to check the accuracy of data before providing it to TransUnion and to update it continuously, usually at least every 30 days, until the termination of the account.
Q What is a credit report?
A A credit report is a record of a consumer's credit history. A TransUnion Credit Report contains information provided by clients (such as banks, finance companies and credit card issuers). You can use TransUnion Credit Reports to make informed decisions about offering credit. Consumers can request their own TransUnion Credit Reports to learn about their credit records, take control of their financial health and be alert to potential identity theft and credit fraud. See a sample of the TransUnion Consumer Credit Report for Guatemala, Honduras and Nicaraqua.
Q How can credit reports help my business?
A Credit reports can help you better determine the level of risk for certain consumers. This enables you to make more informed lending decisions and to offer customized rates to customers and prospects. It can help you increase market share while managing risk more effectively.
Q What are the differences between negative and positive data?
A Full-file credit reporting (currently available in Guatemala, Honduras and Nicaragua) includes both negative and positive credit data, which gives credit providers a more complete picture of a borrower's credit history. For example, a credit report comprising only positive data may show that a consumer has no late payments. The credit provider may then assess the consumer as a low-risk borrower. If both negative and positive data are included, however, the financial institution may also see that this consumer has excessive, high lines of credit. While there may be no late payments, the consumer may be overextended. Receiving another line of credit may result in an inability to repay the debt. The use of both positive and negative data allows credit providers to determine a more accurate level of risk, decide whether to lend to this borrower and set appropriate terms.
Q What is a credit score?
A A credit score is a numerical snapshot of a consumer's credit report at a particular time. This credit score is generated by a mathematical formula utilizing TransUnion credit data. Credit scoring represents the probability of an event happening in the future, but does not indicate that an event will necessarily happen. Credit scoring gained wide acceptance among the credit community in the United States during the 1950s. It helps companies better understand the financial health of consumers and make more informed decisions.
Today, credit scoring is a best practice among credit providers and is commonly used in many countries including the United States, the United Kingdom, Honduras, South Africa, India, Australia, Korea and China. While the financial sector has been the leader in using scoring technology, utilities, retailers, telecommunication companies and the insurance industry in many countries also use it to reduce risk and make better decisions.
Q How can credit scores help my decisions?
A Credit scores can help you predict the future credit activity of customers and prospects. In Honduras, we offer the TransUnion Score Predictivo. This provides a numerical snapshot of a consumer's credit report at a particular time. This credit score is generated by a mathematical formula utilizing TransUnion credit data.
Q What security measures do you use to protect consumer information?
A We follow strict security measures to help ensure the security of personal information. These measures include restricting access to legitimate clients who have permissible purpose to use the information; suppressing the account numbers and client name on certain credit reports; using private, dedicated lines for communications; and controlling our associates' database access through secured passwords and access codes and obtaining our associates' annual commitment to our security policy.
In addition, our Web site supports browsers that use 128-bit encryption, the highest level of encryption generally available, and Secure Socket Layer (SSL) protocol to help ensure the online security of your personal information.
Q Does TransUnion make credit decisions for clients?
A No. TransUnion simply collects and reports information to clients. Clients determine their own lending criteria.