The three credit bureaus: what you need to know—and what they know about you

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The three credit bureaus are companies that many people might not be that familiar with, but the companies themselves have a vast amount of information about the credit behaviors of millions of people.

The credit bureaus collect this information from lenders, who voluntarily provide information about the accounts, balances and payments of their customers. In turn, these lenders rely on the information from the credit bureaus to make decisions about who to approve for new loans and credit cards. All of the information that the credit bureaus maintain about you can be found in your credit report—though there may be differences in the reports that each bureau provides.

If you have any credit cards or loans, it’s important to understand how the credit bureaus work, what they know about you, how to check your credit report and what to do if your report contains inaccurate information.

What is a credit bureau?

Credit bureaus are also referred to as credit reporting agencies (CRAs), and they’re responsible for maintaining credit files for millions of consumers. Put simply, these are the companies that collect information about your credit usage and compile that information in your credit report.

What are the three credit bureaus?

In the United States, there are three major credit bureaus: TransUnion, Experian and Equifax. While other smaller credit reporting agencies exist, these three companies are responsible for the vast majority of credit reporting activity. Each of these companies also provides a separate credit report, so consumers who want information about their own credit need to see what each of these companies is reporting about them.

All of these companies have been around for a relatively long time. Experian is the oldest company and was formed in 1826, when they were referred to as the Manchester Guardian Company. Equifax was founded in 1899, and TransUnion went into business in 1968, though it was not originally a credit reporting agency.

Credit bureaus are important to both consumers and lenders. Consumers are able to vouch for their own creditworthiness by pointing to a reputable source that has records of balances and payments. Lenders, on the other hand, are able to mitigate risk by evaluating a potential customer’s credit report while reviewing a loan or credit card application.

The credit bureaus take are also governed by the Fair Credit Reporting Act (FCRA), which offers a variety of consumer protections, like the ability to dispute inaccurate information.

Where do credit bureaus get their data?

Credit bureaus get their data from lenders and other financial institutions, who voluntarily provide information about their customers’ accounts and balances. While credit reporting is completely voluntary, most companies choose to report information because it is beneficial for them to do so.

Think about it this way: lenders understand that they need information about potential customers in order to make good decisions about who to approve for loans and credit cards. If no lenders provided information, there would be no good way for them to evaluate the creditworthiness or credit risk of each individual customer.

Therefore, most institutions voluntarily share information with the credit bureaus since it helps them in the long run.

What information do the credit bureaus know about you?

The three credit bureaus have quite a bit of information about you, but there is also quite a bit of data that is not included in your credit file. The information that the credit reporting agencies keep in your file is all directly related to your credit usage—or is personal information used to identify you.

Information about your race, ethnicity, gender, marital status and income is not known by the credit bureaus, so this data doesn’t have any impact on your credit report or credit score.

Here’s the information that credit bureaus do keep:

• Name, former names, nicknames and aliases
• Birthday
• Social Security number
• Current and former addresses
• Accounts and balances for your loans, credit cards and lines of credit
• Hard and soft inquiries when lenders review your credit file
• Public records related to your credit (for example, a bankruptcy)
• Collection accounts

The information that credit bureaus keep about you is freely available in your credit report, which is what lenders also inspect when making a decision about whether to extend new credit to you.

Importantly, there can be differences in the information that each credit bureau has about you. Since credit bureaus receive data from a variety of sources, it’s possible that one or more credit bureaus may have received data that the others did not have access to.

Credit bureaus may report different information for a variety of reasons, including:

• Varied methods for collecting information
• Different partners providing data
• Some information was not properly reported
• Data was provided inconsistently

In order to see what information each credit bureau has about you specifically, you’ll need to take some time to review each of your credit reports carefully.

Are credit scores from all three credit bureaus the same?

Your credit score will most likely be slightly different among the three credit bureaus. As mentioned above, each of the bureaus may receive different information, since some lenders only report to one or two bureaus. 

Another reason your credit score may differ across the three credit bureaus is due to the number of hard inquiries each bureau has received. For example, if you apply for a loan, the creditor may pull one of your credit reports, resulting in a hard inquiry. If credit reports are pulled from one bureau more times than the others, that score will slightly drop due to the hard inquiries, even if you are using the same scoring system. As a result, your credit score may be higher or lower depending on the credit bureau. 

All in all, it’s completely normal to see your credit score vary from bureau to bureau.

How can you check your credit report?

You are entitled to a free credit report from each of the three bureaus once every year. To access your free credit reports, visit AnnualCreditReport.com. This website is sponsored by the federal government and is guaranteed to be a safe and free way to access your credit report.

Some people choose to access all of their credit reports at once, while others prefer to get one report every four months so that they can check their credit information throughout the year. In either case, you’ll definitely want to make sure that you’re routinely checking all three of your credit reports, as the information can be different in each report.

While it’s always important to stay on top of your credit, there are some specific times when you’ll want to make certain that your credit files are accurate and up to date:

• When opening a new credit account. Before opening a new loan or credit card, check that your report looks good, as this is what a lender will review to make a decision on your application.
• When applying for a mortgage. For most people, a mortgage is the most important loan you’ll ever apply for. Make sure that your credit report is ready to go before applying for mortgages.
• When building credit. As you work to build or rebuild your credit, keeping up with your credit report gives you a sense of how much progress you’re making.
• When applying for a job. If your potential employer has stated that they’ll perform a credit check as part of your application, check that your report is an accurate reflection before consenting to the check.

Regardless of where you’re at in your credit journey, taking some time to review your credit report can be a useful step. If you have not used a credit card or loan before, however, you may not have a credit report yet. In that case, opening a secured credit card or a credit builder loan is a good way to get started building credit. Later, you’ll be able to access rewards credit cards, auto loans or a mortgage if you continue to use credit responsibly.

What to do if a credit bureau reports a mistake that affects your score

Although the credit bureaus work hard to ensure accuracy on credit reports, it’s still possible for a mistake to appear on your credit report. In some cases these mistakes are harmless, but in other situations a mistake could be unnecessarily lowering your score.

Mistakes can arise for a variety of reasons, from simple reporting errors to serious identity theft. Regardless of the cause, you’ll want to get the inaccurate information removed as quickly as possible. Each of the credit bureaus has a process for disputing inaccurate information, which requires providing evidence online, over the phone or by mail. Additionally, if you believe that your identity has been stolen, the credit bureaus provide the option to freeze your credit, preventing anyone else from opening new accounts in your name.

While anyone can dispute negative items on a credit report, it’s often helpful to get the support of a credit repair company. The consultants at Lexington Law Firm are ready to support you in correcting mistakes on your credit report, so reach out to our team if you’re looking for guidance.

No matter what, now that you have a good understanding of the credit bureaus, you can use credit more confidently and keep on top of your credit report to monitor any significant changes. While these companies often seem shrouded in mystery, the truth of how they operate is fairly straightforward and offers you a clear picture of how your credit usage is ultimately used to make lending decisions.

Reviewed by Nature Lewis, Associate Attorney at Lexington Law. Written by Lexington Law.

Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.

Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter.

Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.