What is a credit bureau?

When you apply for a loan or line of credit, the lender typically reviews your credit history by ordering a report from Experian, Equifax and TransUnion — the "Big 3" credit bureaus

Formally known as nationwide credit reporting agencies (NCRAs), these agencies gather information about your financial history in your credit report, which is used by a credit-scoring model like FICO or VantageScore to generate your three-digit credit score.

Negative items in your report, whether accurate or incorrect, can prevent you from getting approved for a credit card, personal loan or mortgage, or result in you receiving less desirable rates and terms.

A credit bureau aggregates information about your credit history, including payment history, number of credit accounts, length of credit history, and any negative items, like missed payments, bankruptcies or debts sent to collections.

Information in your credit report is shared with banks, credit card companies and other companies trying to determine your creditworthiness It may also be used when you apply for an apartment or by a prospective employer.

The bureaus don't gather data about race, religion, sexual orientation, medical history, political affiliations, criminal records or any other information unrelated to credit. They also don't make lending decisions —they only collect it and share it with lenders to help determine your eligibility.

What's in my credit report?

Each agency has slightly different information, but credit reports typically include identifying details — such as your name, date of birth, phone number, current and previous addresses, Social Security number and current and previous employers.

Your report will also have details about your financial history, including:

• The date an account was opened
• The credit limit or loan amount
• The balance, monthly payment amount and payment pattern over the last several years.
• Bankruptcies or negative judgments
• Debt settlements or Debt Management Plans
• Statements of dispute.

Who furnishes data to the credit bureaus?

The most common data furnishers include banks, mortgage servicers, credit card issuers, auto lenders, and student loan servicers. Debt collection agencies will also report on charged-off accounts and courts will provide data on bankruptcies, liens and judgments.

Utility companies, landlords, mobile phone service providers and streaming services usually don't submit information to the bureaus, although services like Experian Boost® and eCredable will submit records of on-time payments if you're looking to create or improve your credit history.

If you've checked your credit score, you may notice it often varies among credit bureaus. Each agency has different details about you in its files, depending on how often it updates your information and how far back it traces your credit history.

In addition, FICO and VantageScore each have dozens of scoring models, depending on what you're trying to get approved for.

So a FICO Score 8 from Experian will vary somewhat from a VantageScore 3.0 from TransUnion.

Before you apply for a loan or line of credit, review your credit scores from all three bureaus. If possible, ask the lender which bureau and credit scoring model it uses.

By law, you're entitled to free weekly credit reports from each of the main credit bureaus. You can access thes them at annualcreditreport.com.

You can also check your Experian credit score for free with Experian Boost®  or CreditWise from Capital One (which uses TransUnion information).

Most identity theft protection services are paid, but they come with on-demand credit reports and credit scores, along with fraud alerts, dark web scans, password managers and tools for restoring your identity if it's compromised.

Credit report errors can lower your credit score, so the sooner you take action, the better. You can reach out to the credit agency yourself to challenge negative items or hire a credit repair company.

If the agency removes an incorrect item, it is required to notify you, the other two agencies, and (upon request) anyone who received your credit report in the past six months.

If you don't see a correction within a few months (or if it reappears after being removed), follow up.

If the agency denies the request, you can still file a written statement of dispute to be included in your credit report. If you feel you were denied unfairly, you can file a complaint with the Consumer Financial Protection Bureau.

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