What Are The 3 Credit Bureaus? Everything You Need To Know

The three main consumer credit bureaus, also known as consumer credit agencies, are Equifax®, Experian™ and TransUnion®. While you may have heard of these credit bureaus, you may be unsure of exactly what they do and how they get their information. Since Equifax®, Experian™ and TransUnion® play a vital role in your current and future financial health, we’ve created this handy guide to help you out.

What Are The 3 Major Credit Bureaus?

There are three main credit bureaus that gather information from many sources to build your credit reports and calculate your credit score. These credit bureau names are Equifax®, Experian™ and TransUnion®.

Equifax®

Equifax® was founded in 1899 in Atlanta by two brothers as the Retail Credit Company. Today, the company has a presence in 24 countries, $5.1 billion in revenue and 14,000 employees. In September 2019, Equifax® revealed that a data breach from hackers accessing a server affected millions of its customers.

The breach exposed the credit card numbers, birthdates, Social Security numbers, and other personal details of 147 million people in the United States, Canada and the United Kingdom. Equifax has since agreed to a $425 million settlement to help people affected by the data breach. Since the data breach, the company has reported overhauling its cybersecurity program. 

Equifax Complete™ Premier is a comprehensive credit monitoring and identity theft protection product that alerts you when there are changes to your credit report. It can also help protect you against fraud with financial alerts and lost wallet assistance.

Experian™

Experian™ is one of the largest global information services companies and is the oldest of the three major credit bureaus. It is based in Dublin, Ireland, and is known for its international presence, with 21,700 employees across 30 countries. Experian™ specializes in credit reporting and data analytics for individuals and businesses by assessing creditworthiness and managing financial risk.

With Experian™ CreditWorks Premium, you can easily monitor your credit reports from all bureaus and get updates every 30 days. Experian also offers CreditMatch, which provides personalized credit offers that fit your credit profile. You can use it to apply for credit offers with confidence.

There’s also IdentityWorks Premium, which includes identity theft monitoring and alerts, fraud resolution assistance, and up to $1 million in ID theft insurance.

TransUnion®

TransUnion®, founded in 1968, is a global credit reporting and information management company. It began as a railroad holding company and diversified into credit services, becoming one of the three major credit bureaus in the United States. It has a presence in more than 30 countries across the globe.

TransUnion® Credit Monitoring is a premium service that helps you monitor and understand your credit. You will receive Instant Alerts when there are hard inquiries on your credit report and up to $1 million in identity theft insurance. If someone tries to get a car loan or open a credit card in your name, you can stop the fraud before it gets too far. 

In addition, TransUnion® offers CreditCompass, which can give you recommendations to help you achieve the credit score you want. You can track your progress and reach your financial goals using the service.

What Do Credit Bureaus Do?

Credit bureaus gather and maintain personal and financial data about you as a consumer, organize that info, present it in a credit report and provide a credit score. They then sell your credit report and score to lenders, creditors, employers and insurance companies.

The main job of credit bureaus is to provide critical credit information to banks, credit card companies, utility companies, landlords, employers, and lenders to determine your creditworthiness and how financially responsible you are. Credit reports help lenders and creditors decide whether to extend a loan offer to you, can impact an employer’s decision to hire you, or whether a landlord will rent to you.

Credit bureaus gather information such as current and past credit accounts, payment history on your credit cards and loans, bankruptcies, credit inquiries, and accounts that have defaulted and are now with a collection agency. A credit bureau also has your personal info, including your mailing address, Social Security number, and current and past employers.

How Do Credit Bureaus Get Your Information?

Credit bureaus gather consumer information from various sources, including:

• Creditors: Financial institutions, credit card companies, and lenders report your payment history, account balances, and credit limits to credit bureaus monthly.
• Public records: Credit bureaus access public records to obtain information on bankruptcies and tax liens that may impact your credit score.
• Other credit bureaus: Credit reporting agencies may share information with each other to ensure the most accurate credit report possible. This collaboration helps in maintaining consistent credit reports across different bureaus.
• Collection agencies: When you have outstanding debts that go to collections, these agencies may provide information about your debts and payment status to credit bureaus.
• Utilities and telecommunications companies: Late payments and non-payments of utility, phone, or cable bills can appear on your credit report.
• Landlords and property management companies: Some rental agencies report late rental payments.

Why Credit Scores Vary Between Bureaus

Although your credit score probably won’t drastically differ among the three major credit bureaus, it can vary slightly. No matter which credit bureau calculated your score, it consists of the same main factors – your payment history, the length of your credit history, mix of credit, credit utilization, and new credit inquiries.

Yet, credit scores can vary between credit bureaus for the following reasons:

• Different scoring models: Each credit bureau may use slightly different ways of calculating your credit score. For example, one credit bureau may place more importance on a given factor, such as payment history or credit inquiries, than another.
• Data variations: Credit bureaus may have variations in the data they receive from creditors, lenders, and other sources.
• Creditors may not report to all bureaus: Not all creditors report to all three major credit bureaus. Some lenders may only report to one or two of them.
• Timing of updates: Creditors may update their information with the bureaus at different times. For example, a late payment reported to one bureau in March might not appear on another bureau's report until April.
• Errors and inaccuracies: Incorrect information in credit reports is not uncommon. If one bureau contains errors that the others do not, it can lead to score disparities.

Which Credit Score Is Most Important?

No single credit score from a credit bureau is more critical than the others – Equifax®, Experian™ and TransUnion® provide credit scores that are equally valuable. Thus, it’s essential to maintain a good credit score with all bureaus because creditors and lenders may not check scores with all of them.

When creditors do consider all three scores, they might take various approaches. They may calculate your average score, use the median (middle) score, or your lowest credit score.

Therefore, maintaining a strong credit profile with all three bureaus is crucial to ensure you are in the best position for various financial opportunities, such as car loans, credit card offers, or mortgages.

How To Check Your Credit Report

By checking your credit reports, you can understand where you stand financially and whether you need to improve your credit history and score. You can also find out what type of loan or credit card offers you may be available.

All three credit reporting bureaus offer you a free copy of your credit report each year at AnnualCreditReport.com, and you can access your credit score for free with Rocket Money. To get started, you’ll just need to create a Rocket account.

While federal law allows you to receive a free credit report from all three major credit bureaus once a year, obtaining them from a third party like Rocket Money^SM is also smart. We can connect you to financial experts and show you what steps you need to take to improve your credit and plan for your financial goals. The best part is that we won’t charge you anything, and you don’t have to worry about affecting your credit score.

How To Fix Credit Report Errors

It’s useful to check your credit scores and history periodically and to look closely for inaccuracies or errors. You may find mistakes such as:

• Identity errors: Your name may be misspelled, or other personal information may be incorrect.
• Duplication: One of your debts may be listed several times.
• Balance errors: Your balance or credit limit amount could be incorrect.
• Account errors: An account may be reported as open when it’s actually closed or vice versa.
• Fraudulent activity: There may be unfamiliar accounts or activity on your credit history that you didn’t initiate. 

To report wrong info on your credit report, you can dispute errors free of charge. Remember, if there’s wrong info from all three bureaus, you must file a separate dispute with each bureau. If just one report has incorrect information, only file a dispute with that particular credit bureau. 

The credit bureau has 30 days to review and respond when you file a dispute under the Fair Credit Reporting Act (FCRA).

You can get started with the process by contacting the credit bureau directly:

Equifax®:

• Online: credit dispute page
• By phone: (866) 349-5191
• By mail:

Equifax Information Services, LLC

P.O. Box 740256

Atlanta, GA 30374-0256

Experian™:

• Online: credit dispute page
• By phone: (888) 397-3742
• By mail:

Experian's National Consumer Assistance Center

P.O. Box 4500

Allen, TX 75013 

TransUnion®:

• Online: credit dispute page
• By phone: (800) 916-8800
• By mail:

TransUnion Consumer Solutions

Consumer Dispute Center

P.O. Box 2000

Chester, PA 19016-2000

The Bottom Line: Pay Attention To All 3 Credit Bureaus When Performing Credit Checks

Because the credit bureaus play a critical role in determining your creditworthiness, your credit history and score impact if you can get offers for credit cards, auto loans, mortgages, and even rental units. In addition, your credit report can affect your interest rates and loan amounts.

One of the best ways to boost your credit history is to pay bills on time. Also, it is critical to periodically monitor your credit report and score for inaccuracies and even fraudulent activity. The Rocket Money app allows you to see all your upcoming and previous payments in one place, and can help you keep track of your credit score for free. Download the Rocket Money app today!