The 3 Main Credit Bureaus: What They Do and How They Vary

As a consumer, when you apply for a credit card, loan or mortgage, the lender may check your credit. You may have also looked at your own credit report from time to time. But did you ever wonder what the three credit bureaus — Experian^®, Equifax^® and TransUnion^® – actually do and how they differ from each other?

Learn more about these three credit bureaus, what they do and the role they play in your credit status.

What Are the Three Main Credit Bureaus?

While there are other smaller credit bureaus, the three main players in the credit reporting space are:

1. Equifax
2. Experian
3. TransUnion

As credit reporting agencies, they collect data from banks, creditors, auto finance companies, lenders and other entities. Additional information may come from public records.¹

How Is Information From Credit Bureaus Used?

Credit bureaus use the data they collect in a variety of ways that ultimately impact your financial life.

Creating credit reports

The collected information is then used to develop individual consumer credit reports, which are compilations of each person’s credit history. Credit reports contain a consumer’s main contact information; information about existing credit and loan accounts; public record items such as court judgments, tax liens or bankruptcies; and a list of inquiries made into your credit report.¹

Calculating credit scores

The information in credit reports is then used to calculate credit scores, which serve as a measure of how creditworthy a consumer is. This helps companies determine if they want to extend credit to or do business with a person and, if so, what interest rate and terms to offer.¹

Fraud alerts and credit freezes

Each of the credit bureaus also makes it easy for consumers to place a fraud alert or request a credit freeze on their credit files to prevent new credit from being opened in their name. This can be a preventative measure for guarding against identity theft or a temporary solution if you suspect your identity may have been compromised.²

Overview of the Credit Bureaus

The credit bureaus are three separate entities, but they all have a similar function – to collect and compile consumer data. As a consumer, you can set up accounts with one, two or all three of the bureaus to view, to correct or to freeze your credit reports.

1. Equifax

Equifax, the oldest of the credit bureaus, was originally founded in 1899 under the name Retail Credit Company. It was the first agency to compile lists of creditworthy borrowers.³

Today, Equifax — which is headquartered in Atlanta — calls itself “a global data, analytics and technology company.”⁴ The bureau has operations in 24 countries and employs 15,000 people.⁴ Equifax maintains 245 million consumer credit files in the U.S. alone.⁵

Other facts about Equifax

• It offers income and employment verification services, using The Work Number^® database.⁶
• You can get your free credit score each month as part of Equifax Core Credit™️.⁷
• Equifax offers identity theft protection services.⁷

2. Experian

Experian launched in 1996; although technically, its roots date back to 1826 in London. It is a global technology-driven organization that "transform[s] data into information to help people to improve their financial lives."⁸

Experian has 245 million credit-active consumers in the U.S.⁹ The bureau has a workforce of nearly 22,000 people across 30 countries.¹⁰ Its U.S. headquarters are in Costa Mesa, California.¹¹

Other facts about Experian

• Experian offers a Smart Money™ Digital Checking Account with no monthly fees that lets customers share bill pay information to raise their scores.¹²
• The Experian app lets you track your FICO^® score and sends credit alerts.¹²
• Experian became the first credit bureau to collect “buy now, pay later” data when it launched the Apple Pay Later partnership in early 2024.¹³

3. TransUnion

TransUnion was formed in 1969 when it acquired the Credit Bureau of Cook County (CBCC), an agency that was manually keeping 3.6 million credit files.¹⁴ Over the years, the company has grown into a global information and insights company.¹⁴ TransUnion has more than 13,000 associates operating in more than 30 countries.¹⁵

In the U.S., TransUnion has credit files on more than 200 million consumers.¹⁶ Beyond just credit reporting, TransUnion operates seven global product lines: marketing solutions, fraud prevention, risk management, advanced analytics, consumer engagement, investigative solutions and communications solutions. ¹⁷

Other facts about TransUnion

• TransUnion’s corporate headquarters are located in Chicago.¹⁸
• The TransUnion blog offers free education and advice about personal finance topics, from credit management to buying a house to student loans.¹⁹
• Over the years, TransUnion has acquired companies including CallCredit, Neustar, Inc. and Verisk Financial Services to expand its offerings and continue growing.¹⁴

Comparing Different Credit Bureaus

From a consumer standpoint, the three credit bureaus function very similarly and provide comparable credit reporting services. Where they differ most is in the credit scoring models they use and the additional solutions they offer.

Experian vs. Equifax vs. TransUnion

The Importance of Monitoring Your Credit Reports

Monitoring credit reports from each of the top three credit bureaus is the best way to keep tabs on your credit and ensure there is no fraudulent activity taking place. It can also help you gain insight into why your credit score is what it is and help you develop an action plan to improve it.

While it used to be you could pull your free credit report once per year from each of the bureaus via AnnualCreditReport.com, now all three bureaus allow you to check your credit report as often as weekly.²³

Your best bet is to take a look every couple of months if you see an unexplained drop in your credit score or whenever you suspect that your identity may have been compromised.

Keep in mind that it is normal for each one of your credit reports to have slightly different information since some creditors and lenders report to only one bureau. That's why looking at all three is the best way to get a full picture of your credit health.

Beyond looking at your credit reports periodically, you can also sign up for free credit monitoring programs offered by various banks and credit cards. Experian offers free services as well. For a higher level of monitoring, you can consider paid services such as those offered by Equifax and TransUnion.

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Author Bio

Dawn Papandrea is a journalist with more than two decades of experience covering personal finance and consumer issues. She has written for leading financial publications and organizations, including U.S. News & World Report, Investopedia, BankRate and others.