Who Are the Three Major Credit Bureaus?

Credit bureaus are companies that compile your credit history from various companies that you do business with. The credit bureaus then sell the information to any business that has a legitimate business need. You also have the ability to check your credit report to see what information is included in it.

Three Major Credit Bureaus

In the United States, there are three major credit bureaus – Equifax, Experian, and TransUnion. Equifax was founded in 1899 and is the oldest of all three of the national credit bureaus. TransUnion was founded in 1968 and Experian was founded in 1980.

Why Do Credit Bureaus Exist?

Businesses need credit bureaus to keep down the cost of loaning money. Since credit bureaus allow businesses to see an applicant’s credit history, they can reduce the risk of taking on customers who will default on their loans. This helps keep the cost down for all consumers. Without the ability to weed out expensive, non-paying clients, business would have to pass the cost of loan defaults onto all customers – good paying and bad paying.

The Difference in Credit Bureaus

At the core of their operations, all three credit bureaus are the same. They all collect data from banks and other businesses, compile that information into consumer credit reports, and then sell the reports when you make a new credit-based application or check your own credit report. There are some slight differences in the bureaus. For one, some businesses have established relationships with only one or two of the bureaus, so you could have an account that doesn’t appear on all three credit reports. Furthermore, each bureau has a different version of the credit score calculation. Your credit score is the numeric snapshot of your credit history. Lenders use it to quickly make a decision about your application. The bureaus all have different credit scores.

The Best of the Credit Bureaus

Though the credit bureaus are largely unpopular with the public, Equifax seems to be the best of the three. It’s easier to get in touch with a customer service representative. All three credit bureaus sell credit reports and credit monitoring products to consumers. Equifax’s products give consumers the best value for the money paid. For example, both Experian and TransUnion offer credit monitoring of a single credit report for $130 and $180 respectively. Equifax offers 3-in-1 credit monitoring for $130. Not only that, Equifax is the only one of the three credit bureaus that doesn’t have subsidiary sites offering “free” credit reports that require a credit card. Finally, Equifax is the only credit bureau that sells the true FICO score to consumers. The other credit bureaus sell their own generic versions of the FICO score.

Who Regulates the Credit Bureaus?

The credit bureaus are regulated by the Federal Trade Commission (FTC) and have to follow the rules outlined in the Fair Credit Reporting Act (FCRA). If you have a complaint about a credit bureau, you can direct it to the FTC by calling 1-877-382-4357. You can also mail your complaint to:

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580

Contact Information for the Three Credit Bureaus

Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
www.equifax.com

Experian
P.O. Box 2002
Allen, TX 75013
1-888-397-3742
www.experian.com

TransUnion
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
www.truecredit.com