Equifax, Experian, and TransUnion are the top three credit bureaus in the U.S. They are private businesses that collect and sell data on the spending and borrowing habits of individual consumers. The data is compiled into a credit report on every individual, with a score that rates the individual's creditworthiness on a scale that ranges from "poor" to "excellent."

Whether an application is approved for a credit card, mortgage, car loan, or lease depends mainly on a person's credit rating with one or more of the three major credit bureaus.

What Are Credit Bureaus?

Credit bureaus compile credit histories on individual consumers, primarily as a way for prospective lenders to assess their 澳洲幸运5官方开奖结果体彩网:creditworthiness. Other businesses, such as prospective employers, landlords, and utilities, may review your credit history to determine whether you have responsibly paid your debts on time and in full.

Credit Scores from Credit Bureaus

Although credit scores from credit bureaus may vary slightly, credit scores are always 澳洲幸运5官方开奖结果体彩网:three-digit numbers,🌸 typically from 300 to 850.

Your 澳洲幸运5官方开奖结果体彩网:credit score is a numerical representation of your credit history, demonstrating how well you've managed your past and present debts. 澳洲幸运5官方开奖结果体彩网:Credit scores are derived from information in your 澳洲幸运5官方开奖结果体彩网:credit reports, including the following:

• Payment history, such as the number of late and on-time payments
• Amount of debt outstanding
• Length of credit history
• Credit mix, such as loans and credit cards
• Number of recent applications for new credit

Lenders and 澳洲幸运5官方开奖结果体彩网:creditors use the overall score and the details in the credit report to determine whether the person qualifies for additional credit, how much credit to extend and the interest rate on the loan, 澳洲幸运5官方开奖结果体彩网:credit card, or 澳洲幸运5官方开奖结果体彩网:line of credit.

Regulation of Credit Bureaus

Credit bureaus are regulated under the federal 澳洲幸运5官方开奖结果体彩网:Fair Credit Reporting Act (FCRA), which defines how they may colle𝄹ct, disburse, an﷽d disclose consumer information.

The bureaus rely on information supplied by the banks, finance companies, retai🍌lers, and sometimes landlords with which yo🅰u do business.

The Top 3 Credit Bureaus

In the U.S., the top three consumer reporting bureaus are Equifax, Experian, and TransUnion. This trio dominates the market for collecting information about consumers in the credit markets.

Equifax

Based in Atlanta, Equifax has about 15,000 employees and operates in 24 countries. In the U.S., it is dominant in the Southern and Midwestern states. It claims to be the market leader in most of the countries where it has a presence.

Experian

With domestic headquarters in Costa Mesa, California, Experian originally handled reports only for the Western U.S. The firm now employs about 21,700 people in 30 countries and has its corporate headquarters in Dublin, Ireland.

Transunion

Chicago-based TransUnion, founded in the 1960s, has regional offices in Hong Kong, India, Canada, South Africa, Colombia, the United Kingdom, and Brazil and employs over 10,000 people.

H🐷ow the Credit B⭕ureaus Collect Information on You

All three credit bureaus collect the same basic information about consumers. This includes personal data such as name, address, Social Security number, and date of birth. It also includes 澳洲幸运5官方开奖结果体彩网:credit history, including debts, payment his꧒tory, and credit application activity.

Lenders will typically report payments that are at least 30 days overdue to one or more of the credit bureaus.

How Overdue Bills Are Recorded

If you are 澳洲幸运5官方开奖结果体彩网:delinquent in making a student loan payment, 澳洲幸运5官方开奖结果体彩网:Sallie Mae, for example, may report that to a credit bureau, usually when it is 45 days late. Federal loans provide more leeway, allowing 90 days to pass before the loan servicer will file a report of a delinquency.

Not all lenders report credit activity to every credit bureau, so one bureau’s 澳洲幸运5官方开奖结果体彩网:credit report can differ from another credit bureau’s. Even when lenders report to all three bureaus, their information may appear on credit reports at different times simply because the bureaus compile data on different schedules.

Outstanding Tax Bills to the IRS

The 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS) doesn’t report income tax payments or overdue taxes to the bureaus. However, if a taxpayer does not pay their tax debt within a reasonable amount of time or owes substantial 澳洲幸运5官方开奖结果体彩网:back taxes, the IRS might file a federal tax lien (a legal claim against a taxpayer’s property) with the local county clerk’s office. A tax lien filing is considered public information, and the bureaus can find it through third-party research.

How Lenders Use Credit Reports

Suppose you apply for a loan, line of credit, or credit card from a bank or 澳洲幸运5官方开奖结果体彩网:other lender. That lender will almost certainly perform a 澳洲幸运5官方开奖结果体彩网:credit check, requesting a r⛄eport on you from at least one of the three major credit bureaus.

Most lenders refer to only one report from a single credit bureau to determine an applicant’s creditworthiness. Mortgage companies are among the exceptions. A mortgage lender examines reports♈ from all three credit bureaus because of the large amount of money involved.𝐆

All of these 澳洲幸运5官方开奖结果体彩网:credit inquiries are noted on your credit report from the bureau that receives the inquiry. At least in the short term, the inquiry itself can affect your 澳洲幸运5官方开奖结果体彩网:credit score, as it reflects yo🤡ur intention to access additional credit.

Credit Rating Agencies vs. Credit Bureaus

Credit bureaus and credit rating agencies are not the same thing. Credit rating agencies collect information on the credit histories of companies and governments, not individuals. The information is used to rate the creditworthiness of companies and 澳洲幸运5官方开奖结果体彩网:governments that seek to borrow money by issuing bonds or 澳洲幸运5官方开奖结果体彩网:preferred stock.

The major credit rating agencies are 澳洲幸运5官方开奖结果体彩网:Fitch Ratings, Moody’s, and 澳洲幸运5官方开奖结果体彩网:S&P Global. These agencies research and analyze a firm’s financials and assign it a corporate credit rating. The ratings are intended to provide investors with information about the financial stability of issuers of 澳洲幸运5官方开奖结果体彩网:debt-based investments. The agencies also rate the debt obligations and 澳洲幸运5官方开奖结果体彩网:fixed-income securities that companies issue.

澳洲幸运5官方开奖结果体彩网:A.M. Best, another major rating agency, focuses on the insurance industry. Credit ratings are issued in the form of letter grades, such as AAA or CCC so that investors can quickly gauge the level of risk in a 澳洲幸运5官方开奖结果体彩网:debt instrument. The ratings differ among the three major agencies, so it is important to understand which one is providing the letters.༒

Credit ratings are based on many variables, ranging from business attributes to underlying investments, but all are designed to judge the likelihood that a borrower will be repaid.

The Bottom Line

The top three credit bureaus in the U.S. work similarly providing information on individuals to creditors. However, there can be differen♌ces in their credit reporting methods and the information supplied🍃 to them by creditors.

If you are applying for credit, consider obtaining copies of your credit reports beforehand and reviewing them for errors.