Credit Bureaus: Who are they?
The three biggest credit reporting companies – also called credit bureaus – are:
- Experian®
- Equifax®
- TransUnion®
Experian®, Equifax® and TransUnion® use credit scoring models to evaluate and score the information in an individual’s credit report.
Even though the three credit bureaus use similar formulas to calculate a credit score, you can have different credit scores from each one. It depends on how complete, accurate and up-to-date each of the credit reporting company’s information about you is.
Credit Bureaus and Credit Reports
Credit bureaus keep track of a person’s entire credit history. For instance, if you obtained a credit card as a college student in 1985, the credit bureaus would have that information.
Who’s interested in your credit report?
- Banks and other potential lenders gather information from credit reporting companies to help them decide whether or not to extend credit to potential borrowers.
- Insurance companies use credit reports to make decisions about who to insure and at what price.
- Employers often use information from the credit reporting companies to help make hiring decisions on potential candidates.
Credit bureaus and free credit reports
You’re entitled to a free copy of your credit report:
- If you’ve been turned down for a loan, insurance policy, or a job because of credit.
- Under federal law – The Fair and Accurate Credit Transactions Act (FACT) – all U.S. residents are entitled to one free credit report from each of the 3 credit bureaus. Visit www.annualcreditreport.com or call 1-877-322-8228 to find out how you can get a free copy of your credit report.
Remember: Nobody’s perfect. Not the credit bureaus, or borrowers. But if you arm yourself with information, you can help credit reporting companies see you for the responsible person you really are.
