The 3 credit bureaus: Equifax, Experian and TransUnion

Credit bureaus collect data related to your credit and compile it into credit reports. Credit reports are used to do things such as calculate credit scores and make lending decisions. 

For those reasons and more, credit bureaus can play an important role in lending and borrowing. Learn about the three major credit bureaus and how they work.

What you’ll learn:

• The three major credit bureaus are Equifax®, Experian® and TransUnion®.

• Credit bureaus are different from credit-scoring companies such as VantageScore® and FICO®.

• Credit reports contain information about people’s identity, credit history and credit activity as well as information from public records.

• Information in each bureau’s credit reports might come from different sources, which can result in small differences in credit scores.

Equifax, Experian and TransUnion are the three nationwide credit bureaus. Credit bureaus are also called credit reporting agencies or consumer reporting companies. Regardless of what you call them, they’re companies that compile and sell credit reports. Credit scoring companies use information in your credit reports to help calculate your credit scores.

Each credit bureau creates its own credit reports. And not every lender reports data to all three bureaus. That’s why you may have different versions of your credit report:

• Equifax credit reports

• Experian credit reports

• TransUnion credit reports

It’s also one reason you can have multiple credit scores.

Besides the three nationwide credit bureaus, there are also specialty reporting agencies that collect much more specific information. As the Consumer Financial Protection Bureau (CFPB) explains, these agencies collect data and create reports based on specific information like rental payments, insurance claims, medical payments and more. 

If you’ve never heard of these specialty reports, you’re not alone. The CFPB says you might not even know about them unless you find yourself having problems with things like getting a job or renting an apartment.

Credit bureaus compile and sell credit reports to help lenders predict how likely you are to repay debts on time. Lenders then use these reports, along with other information, to help them decide whether to approve credit applications and what interest rates and credit limits to offer.

Credit bureaus don’t calculate credit scores on their own. That’s done by credit-scoring companies such as VantageScore and FICO. They use mathematical formulas called scoring models, along with information from your credit reports, to calculate credit scores.

The three credit bureaus collect information about your financial habits. The exact information each credit bureau collects might vary. But it typically includes:

• Hard inquiries related to credit applications

• Dates you opened accounts 

• Loan amounts or credit limits

• Account balances

• Payment history, including late or missing payments

• Debt collections

• Public records, such as bankruptcies

Credit reports from the three major bureaus may not include alternative data, which can include things such as rent and utility payments. But you may be able to self-report alternative data to the credit bureaus using third-party reporting services.

The three credit bureaus gather information from a combination of sources. These are types of financial institutions and lenders that voluntarily send information to the credit bureaus:

• Credit card issuers 

• Banks and credit unions

• Auto lenders 

• Mortgage lenders 

• Debt collection agencies

Credit bureaus also obtain public records and include that information in their reports. Those records might include: 

• Bankruptcy filings

• Property records such as liens

• Court records 

• Wage garnishments

Your credit information is protected by the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that helps protect the accuracy, privacy and fairness of information collected by credit bureaus.

When credit bureaus collect information on consumer credit behavior, they have the right to do so without people’s permission. But businesses that might want to access information through a credit check need to have “a permissible purpose” under the law to obtain your credit report. In most cases, the business will disclose to you that it is pulling your credit report.

You can request a free copy from each of the major credit bureaus from AnnualCreditReport.com. 

Another way to monitor your credit is by using CreditWise from Capital One. With CreditWise, you can access your credit report and credit score without hurting your credit scores. CreditWise is free for everyone, even if you’re not a Capital One customer.

If you’re concerned about identity theft or account security, you can freeze your credit to prevent people from opening new accounts in your name.

Read more about how to freeze your credit with each of the three major bureaus:

• Freezing your credit with Equifax

• Freezing your credit with Experian

• Freezing your credit with TransUnion

These frequently asked questions about the three credit bureaus might help if you’re looking for quick answers.

Equifax, Experian and TransUnion are the three major credit bureaus. By compiling and sharing your credit reports, they play an important role in lending and borrowing.

No matter where you are in your financial journey, monitoring your credit with CreditWise can help you track your progress. It’s free for everyone. And using CreditWise won’t hurt your credit scores.