Credit Bureau Basics: Experian, Equifax, and TransUnion Explained

The three major credit bureaus—Experian, Equifax, and TransUnion—serve as the record-keepers of your financial history. Understanding how these agencies operate is essential for managing your credit effectively.

Who Are the Credit Bureaus?

Experian: https://www.experian.com/

Equifax: https://www.equifax.com/

TransUnion: https://www.transunion.com/

These three credit bureaus are private companies that collect and maintain consumer credit information. They compile data from creditors, public records, and other sources to create your credit report—a comprehensive document detailing your borrowing and repayment history.

What Information Do They Collect?

The bureaus track:

• Account information (credit cards, loans, mortgages)

• Payment history

• Credit inquiries

• Public records (bankruptcies, foreclosures)

• Personal information (name, address, Social Security number)

Why Do You Have Different Scores?

Your credit score may vary between bureaus because:

• Not all lenders report to all three bureaus

• The bureaus may update information at different times

• Each bureau may use slightly different scoring models

How to Access Your Reports

Under federal law, you're entitled to one free credit report from each bureau annually through AnnualCreditReport.com. Reviewing these reports regularly helps you catch errors and identify potential identity theft early.

Disputing Errors

If you find incorrect information, you have the right to dispute it. The bureaus must investigate disputes within 30 days and remove or correct inaccurate information. Maintaining accurate reports across all three bureaus is crucial for maximizing your credit potential and securing the best loan terms.