In a Nutshell
Equifax, Experian and TransUnion are the three main consumer credit bureaus. They collect and store information about you that they use to generate your credit reports, which are used as the basis of your credit scores.The three major consumer credit bureaus are Equifax, Experian and TransUnion.
A credit bureau is a company that gathers and stores a variety of information about you and your financial accounts and history. It draws on this information to create and maintain your credit reports, which in turn form the basis for your credit scores.
Equifax, Experian and TransUnion are separate companies that compete for the business of creditors, who need credit reports and scores from these bureaus to help them make lending decisions.
Equifax, Experian and TransUnion are not the only bureaus out there, but they’re the biggest and most widely used.
Credit Karma isn’t a credit bureau, but you can see and monitor your credit reports and VantageScore 3.0 credit scores for free from two of the bureaus — Equifax and TransUnion.
- What data do the credit bureaus include in your credit reports?
- Why are your credit scores different from bureau to bureau?
- How do credit bureaus get your information?
- How to dispute inaccurate information on your reports
- Other important credit bureaus
What data do the credit bureaus include in your credit reports?
To start with, your credit reports include identifying data — things like your name, address, Social Security number, and jobs you’ve had. This information has no impact on your credit scores.
Information on your reports that does affect your credit scores includes:
Credit account information
Info on any credit accounts you have — credit cards, student loans, auto loans, mortgages, etc. — makes up the bulk of your credit reports.
For each account, your credit reports typically show …
- Account open date
- Your credit limit – the maximum amount you can borrow on your card or line of credit, as set by the lender
- Your account balance – amount you currently owe on the account
- Your payment history – track record of on-time (or not) payments on the account
Hard and soft inquiries
Generally, a hard inquiry gets recorded on your credit reports when you allow an individual, company or credit issuer to check your credit, typically when you’re applying for new credit. Hard inquiries can temporarily lower your credit scores.
Soft inquires happen when you do things like check your own credit reports. Soft inquiries won’t hurt your credit.
Learn more about the difference between hard and soft inquiries.
Bankruptcy information
If you file for bankruptcy, it’s generally a public record and the credit bureaus will include it in your credit reports.
Chapter 7 bankruptcy can stay on your reports for 10 years. Chapter 13 bankruptcy, which involves paying back at least some debt, stays on your reports for seven to 10 years. Both have the same negative impact on your credit.
Collection accounts
Past-due accounts that have gone to a collections agency may or may not factor into your report and scores. Whether they do (and how much) varies by credit scoring model and by things like amount owed, type of debt, and whether the collection account was ultimately paid.
Keep in mind that you have many credit scores, and they aren’t necessarily the same because they may use different information and weigh your financial factors differently.
Why are your credit reports and scores different from bureau to bureau?
It’s normal for credit reports and credit scores to differ at least a little from credit bureau to credit bureau.
Credit-scoring models may even produce different credit scores from the same credit report because they each take a different approach to calculate your scores.
You have many credit scores, and each provides a different snapshot of your credit health. Even popular credit scoring models like FICO and VantageScore have different versions that can produce different scores.
Some main reasons you’ll notice differences are …
- Scores are from different credit reports. Some lenders or creditors will report your account status to all three major credit bureaus — but others may report to only one or two. This means a credit bureau may be missing information that helps or hurts your score.
- Scores are from different dates. Different issuers and lenders may report information about your accounts at different times, which can create some variations in your credit reports and scores.
- Scores are calculated using different scoring models. There are dozens of credit-scoring models out there — including many versions of VantageScore and FICO in addition to other models — that may calculate your scores a little differently.
Here’s a breakdown of how two common scoring models weigh your information:
Credit score factors: FICO vs. VantageScore
| FICO® Score 8 | VantageScore 3.0 |
|---|---|
| Payment history: 35% | Payment history: 40% |
| Amounts owed: 30% | Depth of credit: 21% |
| Length of credit history: 15% | Percentage of credit limit used: 20% |
| New credit: 10% | Balance: 11% |
| Credit mix: 10% | New credit: 5% |
| Available credit: 3% |
How do credit bureaus get your information?
The information that the bureaus collect comes from a variety of sources.
Information reported to the bureaus by creditors — Creditors, such as banks and credit card issuers, may report information about their accounts and customers to the credit bureaus. In this context, the creditors are known as “data furnishers.”
Information that’s collected or bought by the bureaus — For some types of information, the credit bureaus buy the data. For example, a consumer credit bureau might buy public records information from LexisNexis, another credit bureau, and use this information when generating your credit report. Examples of information that a credit bureau may buy include government tax liens or bankruptcy records.
Information that gets shared among the bureaus — Although they are competitors, sometimes the credit bureaus must share information with one another. For example: When you place an initial fraud alert with one of the bureaus, it’s required to forward the alert to the other two.
Learn more about protecting yourself from identity theft.
How to dispute inaccurate information on your reports
While it’s normal to see different credit scores for different bureaus, we recommend periodically checking your credit reports for errors.
You can request your free credit reports from the bureaus at annualcreditreport.com. You can also sign up for Credit Karma for free to see your Equifax and TransUnion credit reports and VantageScore 3.0 credit scores from those bureaus.
You have the right to dispute inaccurate information in your reports and with data furnishers. Under the Fair Credit Reporting Act, the consumer reporting company and the company that furnished the information to the credit bureau must conduct a free investigation to verify the information and correct a mistake, if they find one.
Here are some ways you can launch a dispute:
- Use Credit Karma’s Direct Dispute™ tool. Credit Karma members can dispute inaccurate information in their TransUnion credit reports with Direct Dispute while logged into Credit Karma. Direct Dispute can also take you to the Equifax web site to initiate a dispute at that bureau, though you can’t dispute it directly from Credit Karma.
- Send letters to all three credit bureaus or call the bureaus, but the advantage of mail and electronic disputes is that you’ll have a paper trail. Check out this guidance and sample credit dispute letter.
Other important credit bureaus
Equifax, Experian and TransUnion may be the big three, but there are actually many consumer credit bureaus. The Consumer Financial Protection Bureau has a list of dozens of consumer credit bureaus organized by the type of information they organize and provide.
Check out the CFPB’s list to find the website, phone number and address for each of the credit bureaus, as well as brief descriptions of what they do and whether they provide a free report to consumers. Many do, but sometimes you need to call or mail in your request.
Here are three other credit bureaus you may want to know about.
- ChexSystems — ChexSystems collects and reports information on closed checking and savings accounts.
- National Consumer Telecom and Utilities Exchange — The NCTUE collects and shares information for the telecommunications, pay TV and utility industries.
- C.L.U.E. — Owned and operated by LexisNexis, Comprehensive Loss Underwriting Exchange collects insurance-related information and creates consumer auto and personal property reports. An insurance company could use these when setting your insurance premiums.
What’s next?
The three main credit bureaus, Equifax, Experian and TransUnion, draw on a wide variety of sources to build your credit reports. Credit-scoring companies like FICO and VantageScore use these reports to calculate your credit scores. Your credit scores can vary by credit bureau, but this is normal.
Check your credit reports often for errors. Credit Karma is not a credit bureau and doesn’t create create scores — but as a Credit Karma member, you can access your Equifax and TransUnion credit reports and VantageScore 3.0 credit scores any time for free. You can also request a free copy of your credit reports on annualcreditreport.com.
If you find an error, contact the credit bureau whose report has the incorrect information and file a dispute. Under law, the credit bureaus must investigate and correct a mistake if they find one.