Credit reporting agencies (also called credit bureaus) gather information on your finances and sell it to other businesses, such as credit card companies and lenders. Three main reporting agencies track credit information: Equifax®, Experian® and TransUnion®. These agencies are regulated by the Federal Trade Commission (FTC), and make use of the Fair Issac and Company® (FICO) scoring model.
Equifax
Equifax, founded in 1899 and the oldest of the three agencies, is based in Atlanta, Georgia. The business extends outside the United States, as the corporation owns more than 30 subsidiaries. Equifax uses its own credit scoring method in addition to FICO. Equifax collects data, including your mortgages, car and other loans, credit accounts, liens, bankruptcy and any legal judgments. In addition to selling your credit and related information to businesses, Equifax offers services to individuals, including monitoring credit scores and reports and measures to guard against identity theft.
Experian and TransUnion
GUS (previously known as Great Universal Stores) formerly owned Experian, a leading credit bureau in both the United States and the United Kingdom, which became an independent company in 2006. GUS created Experian when it combined the largest credit bureau in the U.S. with a credit bureau from the U.K. in 1996. TransUnion, based in Chicago, Illinois, originated from a railcar leasing company in 1968. Experian and TransUnion collect information about you much like Equifax, offering credit reports, credit scores, credit monitoring and identity theft protection and insurance. In addition to credit reporting, TransUnion provides real estate and consumer management solutions.
Credit Reporting Agencies
While not the only credit agencies in the United States, Equifax, Experian and TransUnion may be the best known. Each one offers similar services and collects similar information, but your credit report and score may be different depending on which company you contact. You can purchase combined information, including reports from all three companies, from any one of them. Each allows you to get one free credit report every twelve months, and under some circumstances, even more often. You may dispute any information you believe is incorrect. The FTC charged Equifax, Experian and TransUnion with violating the Fair Credit Reporting Act (FCRA) in 2000 because they didn't have adequate systems in place to handle consumers with questions about their credit reports. The FCRA enforces additional consumer protections to ensure that your credit information is secure.