Credit Bureau Basics

Credit bureaus are private companies that collect and distribute certain personal and financial information to potential lenders. Since they are so influential, it's essential that you familiarize yourself with the big three.

This page:

  • Lists each major credit bureau
  • Explain how to maintain accurate credit information

The 3 credit bureaus

Experian maintains personal and financial information on about 215 million Americans. This broad base of data allows them, and the other two credit reporting bureaus, to assess the financial responsibility of potential borrowers.

TransUnion was founded in 1968 and is headquartered in Chicago, Illinois. They were the first to use an online information storage and retrieval system and maintain one of the more thorough online databases even as others have realized the benefits of such a system.

Equifax, an S&P 500 company established in 1899, specializes in information management for global commerce but is also acts as a credit bureau for potential lenders.

Maintaing accurate credit information

These three credit bureaus are often the only sources of information potential lenders use when deciding whether to lend you money. For a quick assessment, lenders typically consult your credit score, which is calculated directly from the credit bureau’s information.

Ensuring that the information associated with you is accurate is an essential part of being financially responsible. And, luckily, it's easy to do. Simply request a credit report from each of the three credit bureaus and double-check the information.

If you discover errors, alert the credit bureau. They will undertake an investigation and correct any errors.

One more thing...

Of course, making sure your credit report is a favorable one depends on you! Paying bills on time, not overextending yourself financially and demonstrating a high level of responsbility is key to maintaing a good credit reputation.