What do the 3 credit bureaus do?

Written by

Edited by

Published on January 15, 2025 | 6 min read

Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy.

woman checking her phone and working on her laptop

Key takeaways

Credit bureaus collect and maintain records on your credit accounts, balances and the payments you make.
The three major credit bureaus are Equifax, Experian and TransUnion.
Each credit bureau operates independently. They may have different credit information for each consumer and assign them different credit scores.
The information the credit bureaus collect is used to generate credit scores and help lenders make decisions on your creditworthiness.

The three major credit bureaus, Experian, TransUnion and Equifax, all collect data on credit activity. From how much debt you currently have to how long your oldest account has been open, credit bureaus collect information on how you use your credit and compile this into a credit report. These credit reports are then used to calculate your credit scores and help determine your creditworthiness.

Whether you are planning a major purchase, shopping around for better auto insurance rates or looking into credit repair, it’s important to understand what the major credit bureaus do and how they influence your credit score.

What is a credit bureau?

A credit bureau collects data on each consumer’s credit activity. This can include information like how much money you owe on a credit card, the balance of your mortgage or the date you paid off your car loan.

Each credit bureau then consolidates this information into a credit report, which is used to generate your credit score. Credit bureaus can make this credit information available to other companies who wish to check your credit, such as banks, car dealers and credit card issuers.

What information do the credit bureaus collect?

The credit bureaus collect and monitor an array of information to help determine your creditworthiness. Data typically includes basic identifying markers, such as your name, addresses (past and present), Social Security number and date of birth. Other information includes:

Account balances and credit limits.
Credit activity, including hard credit inquiries.
Debt collections and bankruptcies.
Payment history, including late or missed payments.
Status of your accounts, such as open, closed or charged-off.

What information is not included in your credit reports?

Credit reports only contain basic identity information plus accounts and activity that impact your creditworthiness. The credit bureaus will not record data about your income, banking history or education. Personal details, like your race, religion and political affiliation, are not included on your credit reports, nor is criminal history.

Credit reports will generally not contain payment information on your utilities or rent unless you have elected to self-report this information or your provider/landlord has reported a delinquency.

Most importantly, credit reports do not include your credit score. Obtaining your credit score is a separate service that may be included for free or for a nominal fee.

How do the credit bureaus get your information?

Credit bureaus gather information from a variety of sources to compile your credit report, including:

Financial institutions: Credit card issuers, banks, mortgage lenders and other financial institutions regularly report information about your credit accounts, including account balances, payment history, credit limits and the status of your accounts.
Prospective lenders and creditors: Anytime you apply for credit, lenders and creditors may perform a hard inquiry on your credit report.
Collection agencies: If you have accounts sent to collections, collection agencies will report this information to the credit bureaus.
Public records: Credit bureaus collect information about bankruptcies from public records. Before 2017, the credit bureaus included information about civil judgments and liens on your credit reports.
Utility companies and landlords: Utility companies and landlords may report your payment history to the credit bureaus, especially when there are delinquencies or collections.
Self-reported data: Some credit bureaus, like Experian, allow you to add additional information to your credit reports, such as rental payment history, through services like Experian Boost.

What are the three major credit bureaus?

Three main consumer credit bureaus collect credit information and provide credit reports: Equifax, Experian and TransUnion.

Equifax

Equifax has been in business since 1899. In addition to compiling and assessing consumer credit information, Equifax provides resources for consumers who want to build credit or put a credit freeze in place. The company also offers credit and identity monitoring services for a fee.

Experian

As one of the biggest credit bureaus worldwide, Experian supports clients in over 100 different countries. The company maintains credit information on more than 245 million U.S. consumers and 99.9 percent of U.S. businesses. It also offers free credit monitoring services along with additional tools and resources for a fee.

TransUnion

TransUnion has a large global presence, reportedly overseeing the credit information of hundreds of millions of people in 30 countries. Like the other major credit bureaus, TransUnion offers free credit tools and resources along with paid credit monitoring and identity theft protection.

How do the credit bureaus measure your credit score?

Credit bureaus collect data that is then used to generate your credit score using complex scoring algorithms. This scoring is done by separate credit rating agencies — the two most prominent of these are FICO and VantageScore.

FICO Score model

The FICO score, developed by the Fair Isaac Corporation, is one of the most widely used credit scoring models. It evaluates five key factors:

Payment history (35 percent): Whether you consistently pay balances due on time
Amounts owed (30 percent): The total debt you owe compared to your available credit limits
Length of credit history (15 percent): The age of your oldest account, the age of your newest account and the average age of all your accounts
Credit mix (10 percent): The diversity of your credit accounts (such as credit cards, mortgage loans and auto loans)
New credit (10 percent): How many new accounts you have opened recently and the number of hard inquiries on your report

VantageScore model

VantageScore, created by the three major credit bureaus (Equifax, Experian and TransUnion), uses a slightly different approach to calculate your credit score.

Payment history (40 percent): Whether you consistently pay balances due on time
Age and type of credit (21 percent): Average age of accounts and variety of credit types you currently have
Credit utilization (20 percent): How much of your available credit you’re using
Balances (11 percent): The total balances on your credit account
Recent credit (5 percent): Recent credit behavior, including new accounts and hard inquiries
Available credit (3 percent): The amount of credit you have available but are not using

What are the main differences between credit bureaus

In general, all three credit bureaus collect similar information and offer the same services, tools and resources. However, there are some differences in what information is available and how much their services cost.

	Equifax	TransUnion	Experian
Optional credit score	Educational-only score with a 280-850 scoring range (free)	VantageScore 3.0 (pay $0.99)	FICO credit score (free)
Free credit monitoring?	Yes	No	Yes
Paid credit monitoring services	$4.95 – $9.95/month	$29.95/month	$29.99/month or $39.99/month for a family
Identity theft protection	$16.95/month or $29.95/month for a family	$34.90/month	$29.99/month or $39.99/month for a family
Identity theft insurance	$500,000 – $1 million	$1 million – $2 million	$1 million
Credit freeze/lock	Freezes are free, credit locks are a part of paid packages	Freezes are free, no locking	Freezes are free, credit locks are a part of paid packages

How do you check your credit report?

You can get a free copy of your credit report from each of the three major credit bureaus through AnnualCreditReport.com. Simply visit the site, fill out the required information and select which bureau’s report you’d like to view. You can also request your reports by phone or mail if you prefer.

You can check your reports for free once a week. Regularly reviewing your credit reports helps you stay informed about your credit history and spot any errors or signs of identity theft.

How do you check your credit score?

Many banks, credit card issuers and financial institutions offer free access to your credit score as a perk for being a customer. Several online services also provide free credit scores and monitoring tools.

If you can’t access your score for free, you may consider purchasing it directly from the credit bureaus or through FICO’s website.

What do you do if you find a mistake in your credit score?

It’s important to dispute errors on your credit report as soon as you discover them. You can file disputes online or by sending a letter directly to the credit bureaus. If you choose to send a letter, you’ll need to include the following details:

Your name and contact information.
An explanation of mistakes on your credit report.
The company that reported the incorrect information.
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.

Below is the contact information for disputing errors on your credit reports with each of the credit bureaus.

	Experian	Equifax	TransUnion
Online	Experian website	Equifax website	TransUnion website
By phone	1-888-397-3742	1-866-349-5191	1-800-916-8800
By mail	ExperianP.O. Box 4500Allen, TX 75013	EquifaxP.O. Box 740256Atlanta, GA 30374-0256	TransUnionP.O. Box 2000Chester, PA 19016-2000

In lieu of filing disputes yourself, you can hire a credit repair company to address the mistakes on your credit reports.

Frequently asked questions

While Experian is the largest in terms of collecting data on consumers worldwide, TransUnion and Equifax are equally as important. Each lender or creditor may check one or more credit bureaus when assessing your creditworthiness. It’s critical to work on building and improving your credit with all three credit bureaus.
Credit reports from each credit bureau can differ for many reasons. Variations stem from when you pull your report, when the credit bureau updates your information and to your lenders’ reporting tendencies. For instance, you could have a car loan that reports to Equifax and Experian but not TransUnion.

Differences in what appears on your credit reports can also be the result of errors, fraud or identity theft. This is why it’s important to check your credit report with all three credit bureaus.
You have dozens of credit scores, each of them a little different. While some may be similar, others may differ drastically. The reason for the differences comes down to three aspects: time, scoring model and credit bureau.

For instance, pulling your credit score today may yield a different result from the same score pulled last week because your credit activity has been updated during that timeframe. Or, your car insurance provider may see a very different score because they use a scoring model that weighs information differently. Sometimes, a different credit score is simply the result of reports from different credit bureaus.
The Fair Credit Reporting Act (FCRA) is a federal law that ensures the accuracy, privacy and fairness of consumer credit information handled by credit bureaus.

While credit bureaus can gather information on your credit activities without your explicit consent, businesses that want access to this information via a credit check must have a legitimate reason as defined by the law.
No. While your credit report provides detailed information about your credit history, it does not automatically include your credit score. Each of the three credit bureaus gives you the option of obtaining a credit score (either paid or free) when you pull a credit report.