Credit bureaus are organizations that track and report your credit, including your history of paying bills and calculates your ability to repay future loans. Credit bureaus are not government agencies and are private corporations that offer two services:
- compile credit histories on prospective borrowers
- and provide credit reports to lenders.
There are three major credit bureaus in the United States comprised of Experian, TransUnion, and Equifax.
Experian is one of the three major credit reporting bureaus in the United States. They collect information from financial institutions, creditors, and lenders and create credit files for individuals who have credit reported. Information found on Experian credit reports is used by financial companies to determine the creditworthiness of applicants.
TransUnion collects information from financial institutions, creditors, and lenders. They make the information available to consumers and to other creditors to determine credit eligibility.
Equifax collects information from creditors, lenders and financing companies to create individual credit reports. These reports are used by financing companies to determine credit worthiness of credit borrowers.