Credit Bureau
Credit reporting agencies are organizations that collect, maintain, and distribute consumer credit information.
Credit bureaus, also known as credit reporting agencies, are organizations that collect, maintain, and distribute consumer credit information. They play a crucial role in the financial ecosystem by providing data that lenders use to assess the creditworthiness of individuals.
In the United States, the three major credit bureaus are Equifax, Experian, and TransUnion. These agencies gather information from various sources, including banks, credit card companies, and other financial institutions, to compile comprehensive credit reports for consumers.
Data Collection: Credit bureaus collect information on consumers' credit activities, such as loan payments, credit card usage, and public records like bankruptcies.
Credit Reporting: They compile this information into credit reports, which are used by lenders to evaluate the risk of lending money or extending credit to individuals.
Credit Scoring: While credit bureaus themselves do not create credit scores, they provide the data used by scoring models like FICO and VantageScore to generate credit scores.
More Consumer Reporting Agencies
Beyond the major three, there are other credit bureaus and specialty agencies that focus on niche markets or specific types of data:
Innovis: Often considered the "fourth" major credit bureau, Innovis provides credit information services similar to the big three but is less commonly used by lenders.
ChexSystems: Tracks consumers' banking activities, particularly related to checking and savings accounts. It's often used by banks to evaluate new account applications.
LexisNexis: A comprehensive data analytics company that provides risk assessment services to businesses, including credit-related information
CoreLogic: Provides property-related data and analytics, including mortgage and rental history, which can be used by lenders and property managers.
