There are three credit reporting agencies in the USA. These credit reporting agencies are TransUnion, Equifax, and Experian.
Credit bureaus compile credit reports and credit scores about individual borrowers primarily for governments and lenders. They deal with consumer creditworthiness.
What are credit reporting agencies?
Credit bureaus package and analyze consumer credit reports from which credit scores are derived.
Credit scores are issued as three-digit numbers, typically between 300 and 850.
They impact the size of a loan you can qualify for, the interest rate you pay on that loan or on a credit card, and sometimes even your renting and employment opportunities.
Credit bureaus are private companies that are highly regulated under the Fair Credit Reporting Act (FCRA).
They are limited in how they collect, disburse, and disclose consumer information and have come under increased scrutiny since the Great Recession of 2007-2009.
One interesting feature of the credit bureau business model is how information is exchanged.
Banks, financing companies, retailers, and landlords send consumer credit information to the credit bureaus for free, and the credit bureaus turn around and sell consumer information right back to them.
Here is the list of credit reporting agencies operating in the USA.
Equifax
Based in Atlanta, Equifax has approximately 11,000 employees and operates or has investments in 24 countries including the USA.
Especially dominant in the U.S. South and Midwest, it claims to be the market leader in most of the countries in which it has a presence.
Experian
With domestic headquarters in Costa Mesa, Calif., Experian originally handled reports for the Western USA. Now it promotes itself as “the leading global information services company.”
The firm employs “approximately 17,000 people in 37 countries” and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, U.K., and Sao Paulo, Brazil.
TransUnion
The Chicago-based TransUnion has regional offices in Hong Kong, India, Canada, South Africa, Colombia, the U.K., and Brazil and employs more than 8,000 people.
It markets itself as a global information and insights company that makes trust possible.
Final Thoughts
All three credit bureaus collect the same type of information about consumers. This includes personal data, such as name, address, Social Security number, and date of birth.
It also includes credit history, including debts, payment history, and credit application activity.
It is common practice for the credit bureaus to collect information from federal and private student loans and housing lenders.