JUMP TO Section Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.- What is a credit bureau?
- What are the three major credit bureaus?
- Why are my credit reports different from each other?
- Freezing your credit reports to avoid fraud
- Frequently asked questions (FAQ)
Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.
- The three major credit bureaus that track your credit history are Experian, TransUnion, and Equifax.
- The credit bureaus compile your credit history into a credit report, which is used to calculate credit scores.
- Credit bureaus are required to provide security measures, such as credit freezes and fraud alerts.
Your credit score is one of the most important numbers in your financial life. Most people know what a credit score is, but many don't fully understand where they come from. Behind the scenes, credit scores and the credit reports they rely on are tracked and managed by three major credit reporting agencies: Experian, TransUnion, and Equifax.
These three major credit bureaus play a powerful role in your finances. Here's what you need to know about Equifax, Experian, and TransUnion.
What is a credit bureau?
A credit bureau, also called a credit reporting agency, tracks your activity related to credit, which encompasses debt, borrowing, and a few other limited activities. They compile this information into a credit report, which is condensed into a credit score by FICO, VantageScore, or other credit scoring models. Lenders use the information on these credit reports to assess your credit risk.
Credit bureaus keep tabs on everyone's data — whether they like it or not. Even if you had no idea they existed, odds are the credit bureaus have records on you if you've ever had any credit card, auto loan, mortgage loan, or other loan accounts in the US, particularly in the last 10 years. They get this information through your creditors and public records.
The government heavily regulates credit bureaus, particularly the Federal Trade Commission and the Consumer Financial Protection Bureau. However, it's important to remember that credit bureaus are multinational, for-profit, publicly traded companies. They make money by selling your credit reports for permitted uses such as lending, insurance, employment, or rental housing.
Featured Offer Aura – All-In-One ID Theft Protection Learn more On Aura's website
Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Info icon 60-day money back guarantee is only available for our annual plans purchased through our websites (excludes Amazon) or via our Customer Support team. You may cancel your membership online and request a refund within 60 days of your initial purchase date of an eligible Aura membership purchase by calling us at 1-855-712-0021. If you signed up for Aura through a free trial, then your membership purchase date will be the date you signed up for your free trial, and you will have 60 days from the date you signed up for your free trial to cancel and request a refund. If you switched to a new annual plan within 60 days of your initial Aura annual subscription, you may still qualify for the Money Back Guarantee (based upon your initial annual plan purchase date).Fees$15 monthly or $144 annually
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Solid range of protections including parental controls
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Includes antivirus, VPN, and password manager features
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Reasonable pricing for couples and families
- con icon Two crossed lines that form an 'X'. No social media monitoring
Aura ID Theft Protection offers comprehensive identity protection at some of the best prices on the market, which should be expected from one of the services we included in both our credit monitoring and identity theft protection guides.
Aura All-In-One Product Details- All plans come with 24/7 customer support
- Every adult member on your plan is backed by $1,000,000 insurance policy to cover eligible losses and fees due to identity theft.
- Enjoy a 60-day money-back guarantee on annual plans.
- 60-day money back guarantee is only available for annual plans purchased through Aura’s websites (excludes Amazon) or via the Customer Support team.
What are the three major credit bureaus?
There are quite a few credit reporting companies. However, your lender will check your credit with one of three: Experian, TransUnion, or Equifax. The services they offer are largely the same, though a few differences are useful to know.
Experian
Experian is a global data analytics company and credit reporting agency with details on about 245 million individuals and 27 million businesses in the US. In addition to credit scoring information, it tracks household demographics, vehicle records, and other large data sets.
Experian offers free access to credit reports and credit scores through its website or mobile app. It offers extensive credit education resources to help consumers improve their credit and free credit monitoring included in our guide on the best credit monitoring service. Experian also offers a paid credit locking service, which prevents certain third parties from viewing your credit report. This lock comes with $1 million in identity theft insurance.
One unique feature at Experian is Experian Boost, a product that allows you to add information from utility or phone bills as part of your positive credit history, which can instantly improve your credit score.
While Experian has a generally positive reputation, it earned negative press in 2015 for its role in a data breach where the information of 15 million consumers was potentially exposed. It was also fined by the Consumer Financial Protection Bureau in 2017 for providing misleading credit score information to consumers.
Experian traces its roots to 1968 and was established in its current form in 1996. It's headquartered in Ireland, and its stock is listed on the London Stock Exchange. It is a component of the FTSE 100 index, a major index for UK stocks similar to the US's Dow Jones Industrial Average or S&P 500. The operational headquarters for the company is located in Nottingham, UK, with a major US office in Costa Mesa, California.
TransUnion
Based in Chicago, TransUnion is an international credit and data reporting company with information on one billion consumers in over 30 countries. TransUnion data covers over 200 million consumers in the US and offers credit improvement resources to help you improve your credit history and score.
TransUnion is a data source for several popular apps that allow you to check your credit score, including Credit Karma. Like its competitors, TransUnion offers credit reports and/or scores to customers in the financial sector, employers, landlords, and others who need access to credit details.
For consumers, TransUnion offers a paid credit locking service with $1 million in identity theft insurance and a paid credit monitoring service. It also owns IdentityForce, one of the services included in our guide on the best identity theft protection services.
Founded in 1968, TransUnion is publicly listed on the New York Stock Exchange and is a component of the Russell 1000 index. It has a generally positive reputation, though it has run into challenges, particularly around transparency for how it charges for TransUnion consumer products. In April of 2022, the CFPB charged TransUnion, two of its subsidiaries, and a longtime executive director for deceptive marketing around their credit scores and credit-related products.
Equifax
Equifax is a multinational credit reporting agency that operates in 25 countries. It tracks consumer data on more than 222 million US consumers. Equifax offers a range of business and consumer credit products. Major consumer products include a free credit lock product and a comprehensive credit monitoring solution. Equifax also operates ID Watchdog, an identity theft protection service.
This credit bureau is perhaps best known for the data breach in 2017 that affected 147 million consumers in all 50 states. This led to a settlement worth more than $575 million and included both civil penalties and an offer of free credit monitoring and identity theft protection to affected individuals.
Major industries supported by Equifax credit reports include financial firms, insurance companies, retailers, healthcare providers, utilities, and government agencies.
Equifax was founded in 1899 in Atlanta, where it is still headquartered. Its stock is listed on the New York Stock Exchange and is a member of the S&P 500.
Why are my credit reports different from each other?
If you were to pull all three credit reports at once, you would likely find that they don't exactly match. If you get your credit score from the three credit reporting bureaus, they would probably be roughly similar but, again, not exactly the same.
Timing differences between updates of your credit report could cause discrepancies. For example, TransUnion might've gotten data on your credit balances just after you made a big payment, so the credit scoring algorithm might've given you a few extra points. They could be caused by a credit account reporting to one credit bureau and not the others, though this is less likely as most creditors report to all three bureaus. Your credit scores may vary because you're comparing a VantageScore credit score to a FICO credit score.
If one of your scores is very different from the other two, chances are an error in your credit report is bringing your credit down. Experian, TransUnion, and Equifax get data from banks and other companies through big data files from banks, credit unions, credit card companies, and other sources. This information is cobbled together to form your credit report, making errors common. According to a study by the Federal Trade Commission, about one in five consumers have errors on their credit reports.
The credit bureaus use different data sources and use different models, which can account for some differences. However, it's important to review your credit report periodically to hunt down incorrect negative information.
Insider's Featured Identity Theft & Credit Monitoring ServicesIDShield 3 Bureau Individual Plan
IdentityForce UltraSecure+Credit
What are the credit bureaus required to provide me?
Credit bureaus are required to provide services to protect consumers, as mandated by various laws. Below are some protection features that consumers can access for free.
Viewing your credit reports
The Fair Credit Reporting Act requires credit bureaus to provide consumers with a free credit report every 12 months. The credit bureaus have since expanded accessibility, allowing consumers to request free weekly credit reports.
Consumers can access their credit reports through AnnualCreditReport.com.
Note: Viewing your own credit report does not affect your credit score.
Credit report disputes
With so many credit histories to keep track of, credit bureaus are susceptible to credit reporting errors. These can be minor, such as a misspelled name or wrong address. However, some errors can hurt your credit score, like an erroneous hard inquiry on your credit report.
As a consumer, you have a right to dispute an error on your credit report, which the credit bureaus must investigate and correct within a maximum of 30 days — 45 days if you dispute an error after receiving a free credit report.
Correcting an error on your credit report can improve your credit score and your approval odds for better interest rates for future loans.
Entering a dispute for your credit report with any of the three credit-reporting agencies is easiest for most people to do online. If you're not comfortable managing this process on the web, you can generally also handle it by mail.
Here are links to start a dispute at Experian, TransUnion, and Equifax.
Fraud alerts
A fraud alert on your credit report compels lenders to take reasonable measures to check a borrower's identity, adding an extra layer of security over your credit reports.
You only have to call one credit bureau to place a credit fraud alert. That bureau is legally required to inform the other two bureaus of the alert.
Unfortunately, while placing a fraud alert is free, it's also temporary. Fraud alerts generally last one year. You may be eligible for an extended fraud alert, which lasts seven years if your identity has been stolen ynd you have an identity theft report.
Credit freeze
One positive result of the Equifax data breach is that it led to the ability to freeze and unfreeze your credit report for free. Before September 2018, freezing your credit cost $10 every time you used it. The Economic Growth, Regulatory Relief, and Consumer Protection Act made credit freezes free.
Freezing your credit is similar to the credit locking services that the credit bureaus offer. However, credit locks are products credit bureaus provide that aren't necessarily free but offer some benefits, including identity theft insurance. Meanwhile, credit freezes are guaranteed free by law. When you freeze your credit, your credit reports are unavailable to certain third parties, potential identity thieves included. If you want to open a new credit account, you must unfreeze your credit while applying.
Unlike a fraud alert, you must freeze each credit report individually. On the other hand, credit freezes last indefinitely, so you don't have to worry about resetting anything. Head to the credit bureau websites or download their mobile apps to set up your account and handle freezing and unfreezing your credit.
Why is understanding the credit bureaus important?
Understanding the credit bureaus can help you keep track of your credit score while building credit. They can also add layers of security to reduce the risk of identity theft.
You may be able to find similar services elsewhere. In fact, some of the best identity theft protection services are owned by the credit bureaus.
With an active focus on your credit report and credit scores from the three credit reporting bureaus, you can build an excellent credit score that gets you access to the best borrowing products, including the best rewards credit cards and interest rates available. It may not happen overnight, but it's definitely worth the time and effort to improve your credit.
Credit bureau frequently asked questions (FAQ)
Are there other credit bureaus? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Yes. While Experian, Equifax, and TransUnion are the three major bureaus, there are other credit bureaus. Innovis is another consumer credit bureau, considered the "fourth credit bureau." Another important consumer credit agency is ChexSystems, which tracks negative histories with bank accounts. The CFPB maintains a list of consumer reporting agencies they update annually.
How many times can you access your credit report? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You can access one free credit report from each of the three major credit bureaus once weekly. You have to go to AnnualCreditReport.com to access these reports.
Credit reporting agency vs. credit rating agency Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.It's easy to confuse credit reporting agencies for credit rating agencies. Not only do they sound very similar, but there are also three major credit rating agencies: Moody's, Standard & Poor's, and Fitch. These agencies, dubbed "The Big Three," rate the risk that a bond will default much like how a credit score rates the risk that a borrower will default.
Eric Rosenberg Freelance Writer Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker. When away from the keyboard, Eric enjoys exploring the world, flying small airplanes, discovering new craft beers, and spending time with his wife and little girls. You can connect with him at Personal Profitability or EricRosenberg.com. Read more Read less 
Paul Kim Senior Associate Editor at Personal Finance Insider Paul Kim is a senior associate editor and personal finance expert at Business Insider. For over two years, he has edited and reported on various personal finance subjects, from financial crimes to insurance. ExperiencePaul currently leads Personal Finance Insider's insurance coverage. He breaks down complex insurance topics and reviews insurance companies so readers can make an informed choice. Previously, Paul led PFI's credit score coverage, writing and editing stories debt, improving your credit score, and protecting your credit report.Before joining Business Insider in 2022, Paul reported on local restaurant, retail, and real estate developments in Metro Atlanta. He was also the managing editor of his college newspaper at NYU. He also spent some time as a boba shop barista. Paul believes in a reader-first approach to service journalism, addressing the questions readers need answering and writing stories that understand that personal finance isn't one-size-fits-all. As a personal finance editor in his 20s, Paul recognizes how deeply smart financial decisions will impact members of his generation is eager to uncover the mysteries of personal finance to help his readers succeed. ExpertisePaul's list of expertise includes:- Retail investing
- The stock market
- Debt management
- Credit scores
- Credit bureaus
- Identity theft and protection
- Insurance
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
Reference
ncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufonyxsdGspqeZnGKzqrrAp5qeZ5OnsqW102aqnKeimnykvsSdoK1lkqq%2Fpq3UZpyxqJWntqK6jJ6orqGWlsVuwNGapaytnp68rw%3D%3D