Specialty credit bureaus and freezes

Equifax, Experian and TransUnion aren't the only companies keeping a file on you. Specialty reporting companies can affect whether you get a bank account, an apartment or an insurance quote. Here's an introduction.

Specialty consumer reporting companies collect information for specific decisions. A few common types:

• Bank account history: companies like ChexSystems and Early Warning Services track things like unpaid overdrafts and closed accounts.
• Tenant screening: rental history, evictions and related records.
• Insurance and background data: companies like LexisNexis Risk Solutions.
• Other credit data: Innovis, sometimes called the "fourth bureau," and companies that track short-term and alternative loans.

They're covered by the same law as the big three, the FCRA. You can ask for your file, and nationwide specialty companies generally must give you a free copy every 12 months when you request it. The CFPB keeps a list of these companies on consumerfinance.gov.

Security freezes: a freeze blocks most new lenders from pulling your report, which makes it harder for someone to open credit in your name. Freezes are free at Equifax, Experian and TransUnion by federal law, and many specialty companies offer them too. A freeze doesn't affect your score. You just lift it, temporarily or for good, when you apply for something.

• Specialty consumer reporting company: a company that reports on one area, like banking, renting or insurance.
• Security freeze: a lock on your report that blocks most new credit checks until you lift it.
• Fraud alert: a note on your report asking lenders to verify your identity before opening credit. It's free.
• Lift (or thaw): temporarily or permanently removing a freeze.

Jordan is turned down for a checking account even though his credit reports look fine. The denial letter names a bank-account reporting company. He requests his free file and finds a $340 overdraft from an account he thought was closed years ago. Now he knows what he's dealing with. (Made-up example.)

• Denial letters for bank accounts, apartments or insurance usually name the company whose report was used.
• Save the PIN or login you get when you set up any freeze. You'll need it to lift the freeze later.
• Freezing doesn't fix errors. It just limits who can pull your file going forward.
• Some credit education programs teach freezing certain specialty files as part of a larger strategy. Treat that as a strategy, not a guaranteed result.

Find the CFPB's list of consumer reporting companies. Pick the one or two that matter most for you right now. For example, a bank-account company if you've had trouble opening an account, or a tenant-screening company if you're about to rent. Request your free file from each.

Educational information only. Not legal, financial, investment or tax advice. Results vary, and no one can guarantee credit outcomes.