Credit Reporting Agencies

Credit reporting agencies (aka credit bureaus) collect and maintain credit history and personal information on the majority of Americans. These agencies get your personal information from the same lenders who grant you credit through agreements they have made that require the credit grantor to inform the credit bureau of everything that occurs in your relationship with the credit grantor. For example, if you are late with a payment, this fact is quickly reported to at least one of the major credit agencies and is added to your credit history. Credit reports not only show how you are currently managing your credit, they are also histories of everything you have done in the past as far as your credit is concerned.

These agencies are not affiliated with the government in any way. They are for-profit corporations that sell your personal information for money. The agencies make money by selling credit reports to credit grantors who want to see your credit history before they decide to lend you money (for example, whenever you complete a credit application for a loan, mortgage or major purchase). If you have shown any tendency to pay late or to default on paying your financial commitments, many credit grantors' computers are programmed to immediately reject your application.

The three major credit agencies – Equifax, Experian (formerly TRW) and Trans Union – cover all fifty states. There are hundreds of specialized credit bureaus around the country, but most credit grantors will look at information from one of the "Big Three." All bureaus do not contain the same data or necessarily all of your credit history.

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