What is a credit bureau?

A credit bureau, also known in the U.S. as a credit reporting agency, is an organization that collects and researches individual credit information and sells it to creditors for a fee, so they can make decisions about extending credit or granting loans.

How do credit bureaus obtain information about credit?

Credit bureaus acquire information relating to credit from various sources, including other creditors, debtors, debt collection agencies, credit card companies, or other offices with public records on credit-related information. The information is collected and synthesized from the three primary credit bureaus – Equifax, TransUnion, and Experian.

What is the difference between credit registries and credit bureaus?

In contrast, credit registries—the other main type of credit reporting institution—tend to be public entities, managed by bank supervisors or central banks. As privately owned commercial enterprises, credit bureaus tend to cater to the information requirements of commercial lenders.

What does an independent credit bureau do?

Independent agencies evaluate and compare the major credit bureaus, sometimes revealing errors and problems that have included mistaken identities, misapplied charges or debts, uncorrected errors, misleading information, and credit inconsistencies.