Who’s Got Your Credit Data? The Big 3 Credit Reporting Agencies

Credit reporting agencies, sometimes known as credit bureaus, collect data from multiple sources to assess your creditworthiness – basically, whether you tend to pay what you owe.^2,6 They combine that data into credit reports, which they sell to companies you want to do business with.

The types of information collected by credit reporting agencies include:⁷

• Personal identity: name, address, Social Security number, and date of birth.
• Credit accounts: types of credit, the amount of credit extended to you, how much of it you’re using, your repayment record, applications for new credit accounts, and length of credit history.
• Public records and collections: any tax evasion, bankruptcy, foreclosures, repossessions, and debt collections.
• Alternative data: mobile phone bills, rent payments, and utilities.
• Non-credit information: current and previous employers, and salaries.

Like everything human, of course, this process isn’t perfect ...

Given the possibility for mistakes, identity theft, and other issues at each step in the process, both the agencies and the companies that furnish information are subject to standards and regulatory oversight at the state and national levels.⁸

Still, credit reporting generated nearly one million complaints to the CFPB between October 2021 and September 2022.⁹ The CFPB has cited errors such as identity errors, account status errors, data management errors, and balance errors.¹⁰ For example, one of the Big Three suffered a major data breach affecting millions in 2017.¹¹

To combat these and other problems, lawmakers and regulators have continued to update and enforce standards in recent years.¹² Meanwhile, legislation has been introduced in Congress to further improve the transparency, accuracy, and security of credit reporting agencies.¹³

The businesses of the three major credit reporting agencies are essentially the same. Historically, the three were differentiated by region. As the century-old credit reporting industry consolidated, Equifax rose to prominence in the South and East, Experian in the West, and TransUnion in the Central U.S.¹⁴ Some of that legacy endures, but all three agencies are now national – and even do business overseas.

Beyond providing lenders and other companies with credit reports, the credit reporting agencies also make money by selling individuals credit monitoring, identity theft protection, and fraud protection, as well as copies of their own credit reports (though one copy a year is free, by law).^15,16 The agencies also sell personal information to companies that target you with offers.^17,18 Yet another revenue stream comes from packaging your information with data analytics.¹⁵

Despite similarities, what stands out for many people are the differences in each agency’s credit score for the same person – even when using a standardized scoring model, such as FICO. An Experian blog explained that scores vary because of the way the agencies source, schedule, and calculate information.¹⁹ For example, not all credit agencies source data from the same companies.¹⁹ Updates may not all be made at the same time.¹⁹ And each agency customizes its computer models.¹⁹ For a deeper understanding of credit scores, read “What is a Credit Score and How is it Defined?”

People may request their three free credit reports from each bureau once a year and may want to review the CFPB's list of common errors, such as closed accounts that are reported as open, accounts with incorrect credit limits, and others.^16,20 The CFPB also provides detailed instructions and sample letters to help you dispute any errors with both the credit reporting agency and the company that provided incorrect information.²¹ Or read “How to Dispute Your Credit Report at All 3 Bureaus.”