The Three Credit Reporting Agencies: Experian, Equifax, and TransUnion

Most people have heard of Experian, Equifax, and TransUnion. These three credit reporting agencies (also called "credit reporting bureaus" or "consumer reporting agencies") play a significant role in consumers' ability to get mortgages, car loans, credit cards, and sometimes even rent an apartment or get a job. They are for-profit companies that gather and sell information about a person's credit history.

The credit reporting agencies collect information about your credit history, such as your payment record and outstanding debts, and whether your accounts are in good standing or delinquent. Each agency receives data from lenders, credit card companies, and other creditors and then uses this information to create a "credit report," which is a summary of your creditworthiness. Lenders, landlords, employers, and creditors use credit reports when making decisions about your financial reliability. While Equifax, Experian, and TransUnion are separate, private companies, they have similar processes for collecting information, updating their data, and reporting your credit history. In addition, they're all subject to the same laws, such as the federal Fair Credit Reporting Act (FCRA).

However, the information in your credit reports can vary from one agency to another. Regularly reviewing your credit reports is critical for many reasons. For one thing, you'll be able to discover errors that could impact your credit scores (and be able to correct them). Also, you might find out that you're the victim of identity theft and you can take steps to prevent further harm.

What Are Credit Reporting Agencies?

You might hear about "credit reporting agencies," "credit reporting bureaus," or "consumer reporting agencies." Those are three names for the same thing. Sometimes, you'll hear about "credit reports" or "consumer reports." Again, the same thing. But most people call them "credit reports" and "credit reporting agencies."

"Consumer reports" and "consumer reporting agencies" are the terms used in the FCRA, which is the federal law that protects consumers in connection with their credit reports.

What Are the Three Main Credit Bureaus?

The three credit reporting agencies are:

• Equifax. Equifax was established in 1899 and is headquartered in Atlanta, Georgia. Equifax, like the other three major credit reporting agencies, gathers data from creditors, lenders, and other financial institutions to create a detailed credit report for each consumer. The company also offers various services, like credit monitoring and identity theft protection features.
• Experian. Experian, based in Dublin, Ireland, is a global information services company focusing on credit reporting and data analytics. Experian also offers credit monitoring and other services, such as Experian Boost, in addition to producing credit reports.
• TransUnion. TransUnion, headquartered in Chicago, Illinois, completes the trio of major U.S. credit bureaus. Like the other credit reporting agencies, it offers different credit-related services such as credit monitoring and identity theft protection.

If you have any form of credit, then it's almost certain that all three agencies have a credit report on file for you.

Where Do Credit Reporting Agencies Get Your Information?

They get most of the information they collect about you from your creditors. Almost all creditors supply account information using a standard electronic reporting system. You might hear it referred to as "Metro 2." It has many "fields" (boxes or blanks) where the creditor may insert information about you and your credit.

What Do the Three Major Credit Bureaus Do?

The credit reporting agencies sell the credit information collected from various creditors and other sources to banks, mortgage lenders, credit unions, credit card companies, department stores, car dealers, debt collectors, insurance companies, landlords, and employers. These companies and individuals use the credit information to supplement applications for credit, insurance, housing, and employment.

The three credit reporting agencies may also provide identifying information and credit reports to government agencies for their use in:

• extending credit
• reviewing the status of an account or attempting to collect a debt
• granting a license or other benefit, or
• investigating international terrorism.

Who Uses Credit Reports?

Again, lenders, landlords, insurers, and employers use credit reports to evaluate your creditworthiness and manage risk. When you apply for a loan, such as a mortgage, car loan, or credit card, the lender or creditor will use your credit report to assess how likely you are to repay borrowed money. They look for indicators of your past financial behavior, like timely payments and responsible credit use, which can influence whether your application is approved and what interest rate you get. Similarly, landlords often review your credit report when considering your rental application because it indicates whether you're likely to pay your rent.

Insurance companies and some employers also use credit reports when making decisions about whether to offer you insurance or a job. An insurer might also use your credit report when determining the premiums you'll have to pay. An employer might review your credit report (if you give them permission) as part of the interview process to gauge your financial management skills and stability. Not all employers conduct credit checks.

Who Regulates the Three Credit Reporting Agencies?

Various federal laws and government agencies regulate and oversee credit reporting agencies. The primary law that governs the credit bureaus is the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681 and following (2024).) The FCRA ensures that consumers have the right to access their credit reports and dispute inaccuracies, limits who can look at credit reports, and ensures consumers understand how their credit information is used. Also, under the FCRA, users of the information for credit, insurance, or employment purposes must notify a consumer when they take an adverse action based on such reports.

The Consumer Financial Protection Bureau (CFPB) oversees the credit reporting agencies. It monitors compliance with the FCRA and investigates consumer complaints. The Federal Trade Commission (FTC) enforces the FCRA. (The CFPB has most of the rulemaking responsibilities, while the FTC has enforcement authority.)

In addition, some state laws provide additional protections for consumers or requirements for credit reporting agencies.

How Can I Get Free Credit Reports From the Credit Reporting Agencies?

Under the FCRA, you can get a free credit report from each of the three nationwide credit reporting agencies every 12 months (15 U.S.C. § 1681j (2024).) However, the agencies voluntarily provide free weekly reports online, a service they started during the COVID-19 pandemic.

You don't get free reports by contacting the credit reporting agencies directly. Instead, you order reports from the Annual Credit Report Service at www.annualcreditreport.com. However, you might need to contact the credit reporting agencies (see below for contact information) for other reasons. For example, you might need to dispute an item on a credit report or maybe you might want to put a freeze on your credit files. You'll need to contact the credit reporting agencies in those situations and a few others.

Also, you have to contact specialty credit reporting agencies directly to get their files on you.

Do I Have to Pay for Additional Credit Reports?

You'll probably never need to buy a copy because you can regularly get copies of your credit reports for free. But if you need another copy for some reason, you can pay a fee to get a credit report from one of the nationwide credit reporting agencies.

To order additional credit reports after you've received your free reports from the Annual Credit Report service, you must contact the credit reporting agency directly. You can do so:

• Online. The three credit reporting agencies generally allow people to order reports from their websites. (See contact information below.)

• By mail. If you want to order your report by mail, you can use Nolo's Letter to Request Credit Report. You can also find a copy of this letter in Nolo's Credit Repair by Amy Loftsgordon and Cara O'Neill.

• By phone. (See contact information below).

You will have to provide some personal information so the credit reporting agency can identify you.

The agencies' websites sometimes hide the charge for ordering one credit report and advertise a low-cost or a free copy with a 30-day or longer trial membership for one of their services, such as credit monitoring. If you don't want the service, be sure to cancel it within the cancellation period to avoid the high monthly fees.

How Do I Contact All Three Credit Bureaus?

Go to the Equifax, Experian, and TransUnion websites for contact information for the three nationwide credit reporting agencies.

Can a Credit Score for Each Bureau Be Different?

Your credit scores are based on what's in your credit reports. It's common for credit scores to vary slightly among the three main credit bureaus. Each credit reporting agency collects and maintains its own data about a consumer's credit history, and not all lenders or creditors report information to all three credit bureaus. For example, one lender might report to Equifax and TransUnion but not Experian. So, each credit bureau might have slightly different information on file for you, which can cause variations in your credit scores.

Another reason for score differences is which type of scoring model is used. Various credit scoring models, such as FICO and VantageScore, weigh factors like payment history, credit utilization, and length of credit history differently. Even within these models, there are multiple versions, which can lead to credit score variations, even when the information used to produce a score is the same.

Timing can also explain why credit scores differ across the credit reporting agencies. Credit reports are updated when creditors report new information. So, the data at each bureau has could be different, depending on when (or if) the creditor reports the information.

Read More Articles About Credit Reports

Find out what people, businesses, and entities can order your credit report in Who Can Look at Your Credit Report.

If you dispute an item in your credit report, but the credit reporting agency refuses to correct it, read If the Credit Reporting Agency Does Not Correct Your Report: What to Do.

To find out the steps you'll need to take to clean up your credit report, read Steps to Cleaning Up Your Credit Report.

Talk to a Lawyer If You Can't Resolve Issues With Your Credit Reports

If you find errors, outdated information, or missing information on your credit reports, the FCRA gives you the right to dispute those items with the credit reporting agency that made the report. If the credit reporting agency doesn't fix the error or errors, consider talking to an attorney who can help you enforce your rights.

You have the right to sue a credit reporting agency that violates your rights under the FCRA, including continuing to report incorrect information.