{"id":52867,"date":"2024-02-29T08:49:52","date_gmt":"2024-02-29T16:49:52","guid":{"rendered":"https:\/\/financer.com\/?page_id=52867"},"modified":"2024-11-28T21:17:37","modified_gmt":"2024-11-29T05:17:37","slug":"credit-bureaus","status":"publish","type":"page","link":"https:\/\/financer.com\/loans\/glossary\/credit-bureaus\/","title":{"rendered":"What the Top 3 Credit Bureaus Do"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"What_is_a_Credit_Bureau\"><strong>What is a Credit Bureau?<\/strong><\/h2>\n\n\n\n<p>A credit bureau, also known as a credit reporting agency, is an organization that gathers and maintains financial information on individuals and businesses. <\/p>\n\n\n\n<p>The main purpose of a credit bureau is to compile <a href=\"https:\/\/financer.com\/loans\/glossary\/credit-report\/\" data-type=\"link\" data-id=\"https:\/\/financer.com\/loans\/glossary\/credit-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit reports<\/a> and provide them to lenders, creditors, employers, landlords, and other entities with a legitimate need for the information.<\/p>\n\n\n\n<p>Credit bureaus gather data from various sources such as lenders, creditors, and public records to compile comprehensive credit reports.<\/p>\n\n\n\n<p>These reports typically include information about an individual&#8217;s borrowing and repayment history, including <a rel=\"noreferrer noopener\" href=\"https:\/\/financer.com\/credit-cards\/\" target=\"_blank\">credit card<\/a> accounts, <a rel=\"noreferrer noopener\" href=\"https:\/\/financer.com\/loans\/personal-loans\/\" target=\"_blank\">loans<\/a>, and <a rel=\"noreferrer noopener\" href=\"https:\/\/financer.com\/loans\/mortgage\/\" target=\"_blank\">mortgages<\/a>. Credit bureaus use this information to generate <a rel=\"noreferrer noopener\" href=\"https:\/\/financer.com\/wiki\/credit-score\/\" target=\"_blank\">credit scores<\/a>, which lenders use to assess the <a href=\"https:\/\/financer.com\/loans\/glossary\/creditworthiness\/\" target=\"_blank\" rel=\"noreferrer noopener\">creditworthiness<\/a> of borrowers and make decisions about extending credit.\u00a0<\/p>\n\n\n\n<p>In essence, credit bureaus serve as central repositories of financial data that help lenders and other entities evaluate the risk associated with lending money or extending credit to individuals and businesses.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box boxed\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Major_Credit_Bureaus_\">Major Credit Bureaus <\/h3><p><span style=\"font-weight: 400;\">The three major consumer credit bureaus in the US are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equifax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experian<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TransUnion<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These bureaus collect and maintain credit information on millions of consumers across the country. While their methodologies and algorithms may differ, they generally compile similar types of information into <a href=\"https:\/\/financer.com\/loans\/glossary\/credit-report\/\" target=\"_blank\" rel=\"noopener\">credit reports<\/a> and generate credit scores.<\/span><\/p><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"What_Credit_Bureaus_Do\"><strong>What Credit Bureaus Do<\/strong><\/h2>\n\n\n\n<p>Credit bureaus collect information from various sources, such as lenders, creditors, and public records, to create comprehensive credit reports for individuals and businesses.\u00a0<\/p>\n\n\n\n<p>Their main functions include:<\/p>\n\n\n\n<ul>\n<li><strong>Compiling Credit Reports<\/strong>: Credit bureaus aggregate information from various sources to create comprehensive credit reports for individuals and businesses.<\/li>\n\n\n\n<li><strong>Generating Credit Scores<\/strong>: Based on the information in credit reports, credit bureaus calculate <a rel=\"noreferrer noopener\" href=\"https:\/\/financer.com\/wiki\/credit-score\/\" target=\"_blank\">credit scores<\/a>, which provide a numerical representation of an individual&#8217;s <a href=\"https:\/\/financer.com\/loans\/glossary\/creditworthiness\/\" target=\"_blank\" rel=\"noreferrer noopener\">creditworthiness<\/a>.<\/li>\n\n\n\n<li><strong>Providing Credit Monitoring Services<\/strong>: Some credit bureaus offer credit monitoring services to help consumers keep track of changes to their credit reports and detect potential identity theft or fraud.<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Who_Uses_Credit_Reports\">Who Uses Credit Reports?<\/h3><p><span style=\"font-weight: 400;\"><a href=\"https:\/\/financer.com\/loans\/glossary\/credit-report\/\" target=\"_blank\" rel=\"noopener\">Credit reports<\/a> are utilized by a wide range of entities, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lenders<\/b><span style=\"font-weight: 400;\">: Banks, credit unions, and other financial institutions use credit reports to evaluate loan applications and determine the terms and interest rates offered to borrowers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Landlords<\/b><span style=\"font-weight: 400;\">: Property owners and rental agencies use credit reports to screen potential tenants and assess their ability to pay rent on time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employers<\/b><span style=\"font-weight: 400;\">: Some employers review credit reports as part of the hiring process, especially for positions that involve financial responsibilities or access to sensitive information.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Insurance<\/b> <b>Companies<\/b><span style=\"font-weight: 400;\">: Insurance providers may use credit reports to assess risk and determine premiums for auto, home, and other types of insurance policies.<\/span><\/li>\n<\/ul><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"What_Information_Do_Credit_Bureaus_Collect\"><strong>What Information Do Credit Bureaus Collect?<\/strong><\/h2>\n\n\n\n<p>Credit bureaus collect a variety of information, including:<\/p>\n\n\n\n<ul>\n<li><strong>Personal Information<\/strong>: Name, address, Social Security number, date of birth, and employment history.<\/li>\n\n\n\n<li><strong>Credit Accounts<\/strong>: Details of credit accounts, including credit cards, mortgages, auto loans, and personal loans. This includes account balances, <a href=\"https:\/\/financer.com\/loans\/glossary\/credit-limit\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit limits<\/a>, payment history, and any delinquencies or defaults.<\/li>\n\n\n\n<li><strong>Public Records<\/strong>: Bankruptcies, foreclosures, tax liens, and civil judgments may appear on a credit report and can impact credit scores.<\/li>\n\n\n\n<li><strong>Credit Inquiries<\/strong>: Records of inquiries made by lenders and other authorized parties when accessing an individual&#8217;s credit report.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><h3 id=\"What_Information_Isnt_in_Your_Credit_Report\">What Information Isn&#8217;t in Your Credit Report?<\/h3><p><!-- wp:paragraph --><\/p>\n<p>While credit reports provide a comprehensive overview of your credit history, they typically do not include certain personal information, such as income, race, gender, religion, marital status, or medical history.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Your credit report also won&#8217;t include information about your bank balances, income, and medical history.<\/p><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"How_Credit_Bureaus_Get_Information\"><strong>How Credit Bureaus Get Information<\/strong><\/h2>\n\n\n\n<p>Credit bureaus gather information from a variety of sources, including:<\/p>\n\n\n\n<ul>\n<li>Lenders and Creditors: Banks, credit card companies, mortgage lenders, and other financial institutions report account information to credit bureaus on a regular basis.<\/li>\n\n\n\n<li>Public Records: Credit bureaus may obtain information from public records, such as bankruptcy filings, tax liens, and court judgments, which are then included in credit reports.<\/li>\n\n\n\n<li>Collection Agencies: If a debt is sent to collections, the collection agency may report the delinquent account to credit bureaus.<\/li>\n\n\n\n<li>Individuals: Consumers can also submit disputes or corrections to credit bureaus if they believe there are inaccuracies in their credit reports.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Frequently_Asked_Questions_\">Frequently Asked Questions <\/h2>\n\n\n<div class=\"fn_block block_fn_faq_list\"><h4>What is the purpose of a credit bureau?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">A credit bureau gathers and maintains financial information on individuals and businesses. Its primary purpose is to compile credit reports containing data on borrowing history, payment habits, outstanding debts, and other relevant financial activities. These reports help lenders and other entities assess creditworthiness and make informed decisions.<\/span><\/p><\/div><h4>Can I dispute errors on my credit report?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">Yes, consumers have the right to dispute any inaccuracies or errors found on their credit reports. Credit bureaus are required to investigate disputes and correct any information that is found to be incorrect or incomplete. You can initiate a dispute online, by mail, or by phone, providing documentation to support your claim.<\/span><\/p><\/div><h4>Are credit scores the same across all credit bureaus?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">No, each credit bureau may use a slightly different scoring model to calculate credit scores. As a result, your credit scores may vary slightly between bureaus. However, the differences are typically minor, and the factors influencing your credit score remain consistent across all bureaus.<\/span><\/p><\/div><h4>What are the main credit bureaus in the US?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">The three major consumer credit bureaus in the US are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equifax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experian<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TransUnion<\/span><\/li>\n<\/ul><\/div><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Credit Bureau? A credit bureau, also known as a credit reporting agency, is an organization that gathers\u2026 <\/p>\n","protected":false},"author":27398,"featured_media":84508,"parent":48632,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/52867"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/27398"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=52867"}],"version-history":[{"count":15,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/52867\/revisions"}],"predecessor-version":[{"id":52954,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/52867\/revisions\/52954"}],"up":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/48632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/84508"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=52867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=52867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/tags?post=52867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}