The Big Three: Credit Bureaus

Credit bureaus, also called credit reporting agencies (CRAs), are companies that collect and maintain consumer credit information. They then resell it to other businesses in the form of a consumer's credit report.

There are three major credit agencies in the United States: Equifax, Experian, and TransUnion. There are other smaller, specialized agencies as well. When creditors and lenders check your credit, they'll very likely do so with one of the major CRAs. These three agencies retain information on more than 200 million Americans.

Who Governs These CRAs?

The federal government has legislation—the Fair Credit Reporting Act (FCRA)—that regulates how these and other credit bureaus can and must operate. They're monitored by the Federal Trade Commission and the Office of the Comptroller of the Currency because they handle sensitive information on so many millions of citizens.

What the Credit Reporting Agencies Do

The major CRAs receive credit-related information from the companies and lenders with which you do business. Lenders report to them regularly as to whether you're paying your bills on time, if you've ever been 30 or more 60 days late, or if you've ever defaulted entirely. They report how much debt you owe to them.

The credit bureaus also pull relevant public records, like tax liens or bankruptcy information, from state and local courts. This information is included in your credit report as well.

CRAs sell consumer credit information to businesses that have a legally valid reason for reviewing it. For example, a company with whom you've applied for credit would have a valid need to look at your credit history. Your information can also be sold to companies that want to prescreen you for their products and services. Employers and landlords typically cannot access your credit report without your written permission.

Some agencies offer credit monitoring services to consumers as well, but you have to pay for it.

What the Credit Bureaus Don't Do

Credit reporting agencies can only provide information and analytical tools to help businesses make decisions about whether to offer you credit and what sort of interest rate they should charge you. The bureaus themselves don't make these decisions.

The Big Three

1. Equifax

Equifax has been around since 1899, but its reputation was blemished in 2017 when it was hacked and suffered a data breach that divulged the critical personal information of 143 million consumers.

​Equifax has since made a tool available on its site where you can check to see if you were affected. The company also tried to make amends by offering a free credit monitoring service to consumers whose information was breached.

Equifax offers credit fraud protection and identity theft protection to consumers, as well as selling credit reports to businesses. It offers both their FICO and VantageScore credit scores to consumers for a fee as well.

​ 2. Experian

Experian got its start in London when businessmen there began sharing information on customers who did not pay their bills. These businessmen formed the Manchester Guardian Society in 1827, which later evolved into Experian and reached around the world.

Experian uses the FICO 8 credit score calculation system. It also offers a Credit Tracker by subscription. You'll get your credit score as well as your credit report if you subscribe.

3. TransUnion

TransUnion started out as a holding company for a tank car company, then it branched out from there into credit reporting. If you're worried that you're a victim of identity theft or that you might be, you can place a freeze on your TransUnion credit report and TransUnion will take the extra step of notifying the other two CRAs that you've done so.

You can also purchase a credit monitoring subscription with this agency.