- The three major credit bureaus that track your credit history are Experian, TransUnion, and Equifax.
- The credit bureaus compile your credit history into a credit report, which is used to calculate credit scores.
- Credit bureaus are required to provide security measures, such as credit freezes and fraud alerts.
Your credit score is one of the most important numbers in your financial life. Most people know what a credit score is, but many don't fully understand where they come from. Behind the scenes, credit scores and the credit reports they rely on are tracked and managed by three major credit reporting agencies: Experian, TransUnion, and Equifax.
These three major credit bureaus play a powerful role in your finances. Here's what you need to know about Equifax, Experian, and TransUnion.
What is a credit bureau?
A credit bureau, also called a credit reporting agency, tracks your activity related to credit, which encompasses debt, borrowing, and a few other limited activities. A bureau compiles this information into a credit report, which is condensed into a credit score by FICO, VantageScore, or another credit scoring model. Lenders use the information on these credit reports to assess your credit risk.
Credit bureaus keep tabs on everyone's data — whether they like it or not. Even if you had no idea they existed, odds are the credit bureaus have records on you if you've ever had any credit card, auto loan, mortgage loan, or other loan account in the US, particularly in the last 10 years. They get this information through your creditors and public records.
The government, particularly the Federal Trade Commission and the Consumer Financial Protection Bureau, heavily regulates credit bureaus. However, it's important to remember that credit bureaus are multinational, for-profit, publicly traded companies. They make money by selling your credit reports for permitted uses such as lending, insurance, employment, or rental housing.
The 3 major credit bureaus: Experian, Equifax, and TransUnion
There are quite a few credit reporting companies. However, your lender will check your credit with one of three: Experian, TransUnion, or Equifax. The services they offer are largely the same, though a few differences are useful to know.
Experian
Experian is a global data analytics company and credit reporting agency with details on about 245 million individuals and 27 million businesses in the U.S. In addition to credit scoring information, it tracks household demographics, vehicle records, and other large data sets.
Experian offers free access to credit reports and credit scores through its website or mobile app. It offers extensive credit education resources to help consumers improve their credit and free credit monitoring included in our guide to the best credit monitoring service. Experian also offers a paid credit locking service, which prevents certain third parties from viewing your credit report. This lock comes with $1 million in identity theft insurance.
One unique feature at Experian is Experian Boost, a product that allows you to add information from utility or phone bills as part of your positive credit history, which can instantly improve your credit score.
While Experian has a generally positive reputation, it earned negative press in 2015 for its role in a data breach where the information of 15 million consumers was potentially exposed. It was also fined by the Consumer Financial Protection Bureau in 2017 for providing misleading credit score information to consumers.
Experian traces its roots to 1968 and was established in its current form in 1996. It's headquartered in Ireland, and its stock is listed on the London Stock Exchange. It is a component of the FTSE 100 index, a major index for UK stocks similar to the Dow Jones Industrial Average or S&P 500. The operational headquarters for the company is located in Nottingham, UK, with a major US office in Costa Mesa, California.
Equifax
Equifax is a multinational credit reporting agency that operates in 25 countries. It tracks consumer data on more than 222 million U.S. consumers. Equifax offers a range of business and consumer credit products. Major consumer products include a free credit lock product and a comprehensive credit monitoring solution. Equifax also operates ID Watchdog, an identity theft protection service.
This credit bureau is perhaps best known for the data breach in 2017 that affected 147 million consumers in all 50 states. This led to a settlement worth more than $575 million and included both civil penalties and an offer of free credit monitoring and identity theft protection to affected individuals.
Major industries supported by Equifax credit reports include financial firms, insurance companies, retailers, healthcare providers, utilities, and government agencies.
Equifax was founded in 1899 in Atlanta, where it is still headquartered. Its stock is listed on the New York Stock Exchange and it is a member of the S&P 500.
TransUnion
Based in Chicago, TransUnion is an international credit and data reporting company with information on one billion consumers in over 30 countries. TransUnion data covers over 200 million consumers in the U.S. and offers resources to help you improve your credit history and score.
TransUnion is a data source for several popular apps that allow you to check your credit score, including Credit Karma. Like its competitors, TransUnion offers credit reports and/or scores to customers in the financial sector, employers, landlords, and others who need access to credit details.
For consumers, TransUnion offers a paid credit locking service with $1 million in identity theft insurance and a paid credit monitoring service. It also owns IdentityForce.
Founded in 1968, TransUnion is publicly listed on the New York Stock Exchange and is a component of the Russell 1000 index. It has a generally positive reputation, though it has run into challenges, particularly around transparency in how it charges for TransUnion consumer products. In April of 2022, the CFPB charged TransUnion, two of its subsidiaries, and a longtime executive director with deceptive marketing around their credit scores and credit-related products.
Why credit bureaus matter
For consumers
Your credit report is the basis for your credit score, which will determine your interest rate and other payment terms for credit cards, mortgages, and loans. Understanding how the credit bureaus work can help you keep track of your credit score while building credit.
The credit bureaus can also add layers of security to reduce the risk of identity theft. In fact, some of the best identity theft protection services are owned by the credit bureaus.
With an active focus on your credit report and credit scores from the three credit reporting bureaus, you can build an excellent credit score that gets you access to the best borrowing products, including the best rewards credit cards and interest rates available. It may not happen overnight, but it's definitely worth the time and effort to improve your credit.
For lenders
The credit bureaus provide your credit report and credit score to the lenders that you apply to for credit, as a risk assessment for lenders who might loan money or extend credit to you. These measures determine your creditworthiness and the level of risk the lender would incur by doing business with you, and can be used for employment screenings, calculating insurance premiums, and apartment rental approval — not to mention the interest rates and loan terms you can be offered.
How to access your credit reports
The Fair Credit Reporting Act requires credit bureaus to provide consumers with a free credit report every 12 months. The credit bureaus have since expanded accessibility, allowing consumers to request free weekly credit reports.
Consumers can access their credit reports through AnnualCreditReport.com. Viewing your own credit report does not affect your credit score.
Frequently asked questions about the 3 credit bureaus
Yes, there are other credit bureaus beyond the big three: Experian, Equifax, and TransUnion. Innovis is another consumer credit bureau, considered the "fourth credit bureau." Another important consumer credit agency is ChexSystems, which tracks negative histories with bank accounts. The CFPB maintains a list of consumer reporting agencies it updates annually.
You can access a free credit report from each of the three major credit bureaus once weekly through AnnualCreditReport.com.
Yes, all three credit bureaus have the same information — mostly. The credit bureaus use different data sources and different models, which can account for some differences in what shows up on your report (and therefore, how your score may be calculated). And sometimes, a report can contain mistakes. Review your credit report periodically to highlight and dispute any incorrect negative information.
