The 3 credit bureaus: Equifax, Experian and TransUnion

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

For those reasons and more, credit bureaus can play an important role in lending and borrowing.

What you’ll learn:

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

• Credit bureaus are sometimes called credit reporting agencies or consumer reporting companies. They’re 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, including creditors and public records, which can result in small differences in credit scores.

Equifax, Experian and TransUnion are the three nationwide credit bureaus. According to the Consumer Financial Protection Bureau (CFPB), credit bureaus are companies that compile and sell credit reports. The information they collect is then used to help calculate your credit scores.

Each credit bureau creates its own credit reports. That’s why you may have different versions of your credit history and multiple credit scores. Read more about how each credit bureau compiles its credit reports:

• Experian credit reports

• Equifax credit reports

• TransUnion credit reports

Besides the three nationwide credit bureaus, there are also specialty reporting agencies that collect much more specific information. As the CFPB explains, these agencies collect data and create reports based on 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 decide whether to approve credit applications and what interest rates and credit limit to offer.

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

• Hard inquiries related to credit applications

• The date you opened accounts 

• The loan amount or credit limit

• The account balance

• Your payment history, including late or missing payments

• Debt collections

• Public records, like bankruptcies

The three credit bureaus gather information from a combination of sources. But there are a few typical ways credit bureaus collect information about you.

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 check your credit reports by getting a free copy from each of the major credit bureaus. Visit AnnualCreditReport.com to request your copies. But keep in mind there may be a limit on how often you can get your report. You can check the site or call 877-322-8228 for more details.

Another way to monitor your credit is by using CreditWise from Capital One. With CreditWise, you can access your TransUnion credit report and VantageScore 3.0 credit score without hurting your credit. CreditWise is free for everyone, even if you’re not a Capital One customer.

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

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

While there are multiple credit bureaus, Experian, Equifax and TransUnion are the major three. 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 a tool like CreditWise from Capital One can help you track your progress. It’s free for everyone. And using CreditWise won’t hurt your scores.