What Do The 3 Credit Bureaus Do?

What Do The 3 Credit Bureaus Do?

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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: d3sign/Getty Images May 23, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Bankrate logo

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What are the three credit bureaus

There are three main credit bureaus that handle the details that make up your credit scores: Equifax, Experian and TransUnion. While each of the credit bureaus offers an array of products and services, they perform the same set of tasks when it comes to monitoring consumer credit information. Specifically, they each manage their own records that include information on accounts you have, balances you owe and payments you make. Because each credit bureau operates independently, they don’t always have the exact same information for each individual. If you have a credit card, mortgage or loan, you have a credit file with one of the three credit bureaus, if not all three.

Equifax

was founded in 1899 and has since grown to be one of the three main credit bureaus in operation. In addition to compiling and assessing consumer credit information, this company also offers credit and identity monitoring services and resources for consumers who want to improve or build credit or put a credit freeze in place.

Experian

As one of the biggest credit bureaus operating around the world, supports clients in over 100 different countries. The company actively maintains credit information on approximately 220+ million U.S. consumers as well as 40 million U.S. businesses, and they offer credit monitoring, free credit scores and additional tools for consumers.

TransUnion

TransUnion also has a large global presence, as they reportedly oversee the credit information of hundreds of millions of people in 30 countries around the world. Like the other major credit bureaus, offers identity and credit monitoring, , information concerning legal rights under the and more.

What information do the credit bureaus collect

The credit bureaus include an array of information that helps them determine your creditworthiness and assign you a credit score. Information they compile typically includes identifying information, like your name, addresses (past and present), Social Security number and date of birth, as well as information on the accounts you have had, balances you owe and payments you have made. They also collect the following information: Current and past credit accounts Payment history Negative information such as missed payment, collections, bankruptcies, repossessions and foreclosures Hard inquiries

Why are credit scores different

Credit scores from each of the credit bureaus can be different for different reasons. For starters, each credit bureau may maintain different information on each consumer, and they might also give more weight to specific factors when coming up with a credit score. Also, note that the type of credit score a credit bureau assigns may be different ,and that you may get a FICO credit score from one and a VantageScore from another, for example. If you have your credit scores pulled at different times, you may also see varying scores due to the passage of time and more information being added to your credit reports.

Do you need all three credit scores

According to , it’s possible to only have a credit score with one or two of the credit bureaus but not all three. This is usually due to the fact that you have not met the minimum credit scoring criteria with each of the bureaus. To have a , for example, your credit report must have at least one undisputed account that is six months or older and at least one undisputed account that has been updated in the past six months. Further, your credit report cannot have a notation that you’re deceased. To summarize, you are less likely to have a credit score with all three bureaus if you’re just starting to build credit from scratch. Since not having a credit score with each of the credit bureaus makes it less likely you’ll be approved for the and loans, working on building your credit and with all three bureaus always makes sense.

How to dispute incorrect information

It’s a good idea to regularly review your credit reports. You can get a free copy once a year from each of the credit bureaus—Equifax, Experian and TransUnion. Fortunately, you can do this online and for free using the website . While it’s smart to look over your credit reports to make sure you have a solid understanding of your debt obligations and your overall payment history, federal regulators you should also check for errors. This is mainly due to the fact that incorrect information on credit reports is fairly prevalent, and it could even lead you to early signs of identity theft. You may also find a simple mistake on your credit reports that should be fixed, such as an account you paid off and closed that is still listed as open, or the same debt listed twice. Fortunately, there is a formal process you can use to on your credit reports. Specifically, you will need to mail a letter to each of the credit bureaus with the incorrect information, as well as the company that provided the incorrect information. In your letter, you’ll need to include the following information: Your name and contact information An explanation of mistakes on your credit report A copy of your credit report with the mistakes highlighted or circled Supporting information that shows why the information is wrong A request for the information to be updated or removed You can dispute incorrect information on your credit reports with each of the credit bureaus using the contact information below: Experian Equifax TransUnion Online By phone 1-888-397-3742 1-866-349-5191 1-800-916-8800 By mail Experian P.O. Box 4500 Allen, TX 75013 Equifax P.O. Box 740256 Atlanta, GA 30374-0256 TransUnion P.O. Box 2000 Chester, PA 19016-2000

The bottom line

The three main credit bureaus pull from a wide variety of information in order to put together your credit reports. Keep in mind, the credit bureaus are heavily regulated by the Fair Credit Reporting Act, which restricts and limits how they collect or share consumer information. Take advantage of your free annual credit report from AnnualCreditReport.com, and if you happen to find an error, contact the credit bureau and file a dispute. To keep in line with the law, the corresponding credit bureau(s) must address a mistake if they find one listed on your credit report. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer.

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