What is a Credit Bureau?
A credit bureau, also known as a credit reporting agency, is a company that collects and maintains individual consumer credit information. These agencies sell this data to lenders, creditors, and consumers in the form of credit reports.
The Three Major Credit Bureaus
In the United States, the credit reporting industry is dominated by three major bureaus: The CFPB credit reporting resource center explains your rights under the Fair Credit Reporting Act, including how to dispute errors with each bureau.
- Equifax: Founded in 1899, Equifax is one of the oldest and largest agencies.
- Experian: Headquartered in Ireland with significant U.S. operations, Experian provides credit data for both individuals and businesses.
- TransUnion: The smallest of the three major bureaus, TransUnion also provides specialized risk management services.
Lenders may report your account activity to one, two, or all three of these bureaus. Consequently, your credit report and score can vary depending on which bureau's data is accessed.
What Information Do Bureaus Collect?
Credit bureaus compile data from banks, credit card issuers, auto lenders, and public records. A standard credit report includes:
- Identifying Information: Name, address, Social Security Number, and date of birth.
- Credit Accounts (Tradelines): Types of accounts, credit limits, account balances, and payment history.
- Inquiries: A list of lenders who have accessed your report. Learn more about the impact of a hard inquiry.
- Public Records: Bankruptcies and, in some cases, court judgments.
Bureaus do not decide whether you are approved for a loan. They simply provide the historical data that lenders use to calculate your FICO Score and make a lending decision.
Frequently Asked Questions (FAQs)
Why is my score different at each bureau?
Creditors are not legally required to report your data to all three bureaus. If a lender only reports your account to Experian, your Equifax and TransUnion reports will lack that data, resulting in different credit scores across the bureaus.
How do I fix errors on my credit report?
You must file a dispute directly with the specific credit bureau displaying the error. The bureau then has 30 days to investigate the claim with the data furnisher and correct or remove inaccurate information.
