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| What is a credit reporting agency? |
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Last Updated
13th of April, 2010
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Credit reporting agencies (CRAs), also known as credit bureaus, compile and maintain records of your credit history from credit card companies, banks, mortgage companies, and other lending institutions. They use this information to create your credit reports. The information in your credit reports is also used to calculate your three-digit credit scores. Your credit reports and scores will vary between the credit reporting agencies, but they will usually fall in a similar range.
There are three principal credit reporting agencies: Equifax, Experian, and TransUnion:
- Equifax, NYSE symbol EFX, is based in Atlanta, Georgia, and is the oldest of the three credit reporting agencies (it claims to be over 100 years old). Whenever lenders access your Equifax credit file, they get it from their location in Atlanta, Georgia. Equifax also has credit reporting agencies in other parts of the world, including Canada.
- Experian is based in Costa Mesa, California, and is a subsidiary of Great Universal Stores, a company located in the United Kingdom. Experian now owns the date that used to be stored in the TRW credit database.
- TransUnion is a privately held company located in Chicago, Illinois. TransUnion also owns credit-reporting agencies in other countries as well as Canada.
There is a fourth credit bureau called Innovis, located in Columbus, Ohio, that is competing to become the fourth credit-reporting agency.
Each of the big three claims to store 250 million consumer credit files. They sell them directly to lenders, insurance companies, employers, and any other company that has “permissible purpose” to access consumer credit data. These companies also sell credit information and other credit-related services, such as identity theft protection, directly to consumers.
Not sure where you stand credit-wise? Check your reports and scores online today!
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