CREDIT REPORTING AGENCIES: What Do They Do?

Credit bureaus are the firms that gather and retain consumer credit information from the lenders we use for credit cards, mortgages, and other types of loans. They aid in determining our perceived creditworthiness, or the possibility that we would pay our debts on time. Then, this information is gathered and supplied to businesses that are interested in our credit history. Learn more about the three credit reporting agencies for businesses, why they are so crucial in our financial lives, and how to contact the 3rd party agencies, including phone numbers.

What is a Credit Bureau?

Credit bureaus, often known as “credit reporting agencies” (CRAs), are businesses that collect and store customer credit data. Equifax, Experian, and TransUnion are the three largest credit reporting agencies in the United States. Each is a for-profit, publicly traded firm. While there are other smaller agencies, creditors and lenders are more likely to verify your credit through one of the main credit reporting agencies.

Companies and lenders that you do business with provide credit-related information to the main CRAs. Lenders report regularly if you’re paying your debts on time if you’ve ever defaulted completely, and how much debt you owe them. Credit bureaus also obtain pertinent public documents from state and local courts, such as tax liens or bankruptcy information. This information is also included in your credit report.

3rd Party Credit Reporting Agencies

Third-party credit reporting agencies are firms that gather and preserve information about people’s creditworthiness and credit history from numerous sources, including lenders, credit card companies, and public records. This data is used to build credit reports, which are subsequently sold to lenders, employers, landlords, and other organizations that need to assess an individual’s creditworthiness.

Equifax, Experian, and TransUnion are three of the most well-known third-party credit reporting agencies in the United States. These organizations are known as the “big three” credit bureaus, and they are in charge of collecting and keeping credit information on millions of people.

There are smaller credit reporting organizations that specialize in specific sorts of credit information, such as rental history or banking information, in addition to the main three. Credit reports and ratings may also be provided by these organizations to lenders and other entities.

Individuals have the right, as authorized by federal law, to request a free credit report from each of the three main credit bureaus once per year. Reviewing these reports regularly can assist consumers in identifying and correcting any inaccuracies or fraudulent behavior on their credit history.

Three Credit Reporting Agencies

The top three credit reporting agencies gather data on how we manage our financial responsibilities. The agencies then sell this information to lenders and credit-scoring companies, who use it to assist assess loan and credit-line eligibility. Employers, vehicle dealers, property management organizations, and other decision-makers utilize credit bureau data to evaluate applications.

You’re undoubtedly aware that you can obtain a free copy of your credit report once every 12 months from each of the three major credit reporting organizations. Learn more about the top three credit agencies as well as alternative credit bureaus that you may face at some time in your credit career by reading on.

#1. Equifax

Equifax has been in business since 1899 and has operations or investments in 24 countries. It provides credit fraud and identity theft protection to individuals and sells credit reports to businesses. Credit monitoring services that include Equifax credit ratings are available to consumers.

Equifax’s reputation was tarnished in 2017 after it was hacked and suffered a data breach that exposed the sensitive personal information of 147 million customers. Equifax has recently put a tool available on their website that allows you to check to see if you were affected. The corporation also attempted to make amends by providing free credit monitoring to customers whose information had been compromised.

#2. Experian

Experian began in London when businessmen began sharing information about customers who failed to pay their bills. In 1826, these individuals founded the Manchester Guardian Society, which subsequently became a vital element of Experian and had a global reach. Experian employs over 17,800 individuals across 45 countries and was designated one of Forbes’ “World’s Most Innovative Companies” in 2018.

Experian uses the FICO 8 credit scoring algorithm and offers a CreditWorks Premium subscription option. If you pay $24.99 every month, you will receive your credit score as well as your credit report from all three agencies.

#3. TransUnion

TransUnion began in 1968 as a holding company for a tank car firm, then expanded into credit reporting. By 1988, the business had complete coverage and consumer data on every market-active adult in the United States. Also, its database contains over one billion users from over 30 countries.

If you’re concerned that you’ve been a victim of identity theft or that you might be, you can place a freeze on your TransUnion credit report, and TransUnion will alert the other two CRAs. A credit monitoring service is also available for $24.95 per month.

Credit Reporting Agencies Phone Number

The phone numbers for the three major credit reporting agencies in the United States are shown below. Each bureau’s contact information is shown below:

Equifax

Phone: 866-349-5191
Mail: P.O. Box 105788, Atlanta, GA 30348

Experian

Phone: 888-EXPERIAN (397-3742)
Mail: P.O. Box 9554, Allen, TX 75013

TransUnion

Phone: 833-395-6938
Mail: P.O. Box 2000, Chester, PA 19016

If you need to contact any of these businesses, make sure you have your personal information handy, including your full name, address, and Social Security number. You may also be questioned about specific accounts or transactions on your credit report.

Small Credit Reporting Agencies Consumers Should Know About

Several small businesses collect and sell various forms of consumer information to businesses that need to make a judgment about you. These smaller credit reporting agencies are also governed by the Fair Credit Reporting Act, which means you have the right to an accurate credit report and the ability to dispute any wrong information with the credit reporting agency to have it corrected or erased.

Most people are familiar with the three major national credit bureaus: Equifax, Experian, and TransUnion. While most lenders will obtain your credit history and credit ratings from one or all of these bureaus, these aren’t the only credit reporting organizations.

#1. ChexSystems

Banking information is not included in any of your traditional credit reports unless you have an overdraft that is sent to a collection agency. ChexSystems is the checking account credit bureau.

When you apply for a checking account, the bank will most likely examine your ChexSystems account to see if you’re a risk of having an account. ChexSystems collects and reports information on checking account applications, openings, and closings, as well as the reason for the bank account closure.

#2. Certegy

Certegy has a database of check-writing history to assist businesses in deciding whether to accept consumer checks. They also offer check screening to retail businesses that accept checks.

Businesses utilize Certegy to lower the risk of check fraud and may refuse to accept a check from you if your report contains unfavorable information. Even if you’re not a frequent check writer, reviewing your Certegy report can assist you identify when someone else has written faulty checks in your name.

#3. Innovis

Innovis is often referred to as the fourth credit bureau because it collects information similar to the big three credit agencies. Also, Innovis provides ID verification data to aid in the discovery and prevention of fraud, and many businesses utilize it to check potential clients.

They also collect a wide range of non-traditional credit data, such as rent payments, magazine subscriptions, and utility bills. Innovis allows you to order your annual credit report via mail, phone, online, or in person.

#4. Clarity Services

Experian’s Clarity Services collects and offers information on various credit transactions that aren’t included in standard credit reports from the main credit agencies. They concentrate on subprime lending businesses such as payday loans, installment loans, auto title loans, check cashing services, and rent-to-own businesses. Experian generates its Clear Early Risk Score using data collected by Clarity Services to assist lenders in evaluating non-prime individuals exploring alternative financing.

#5. CoreLogic Teletrack

Teletrack also provides information on a wide range of subprime lending products, such as payday loans, rent-to-own businesses, furniture stores, auto finance, subprime credit card issuers, and debt purchasers. Because these businesses may not report to the three major credit bureaus, your accounts will not appear on your credit reports. Instead, these businesses use your Teletrack credit record to assess whether or not to provide you with a loan.

#6. CoreLogic Credco

Credco merges credit information for major lenders such as mortgage and auto loan providers. Your information from all three credit bureaus is combined in the amalgamated credit file. Credco also gathers personally identifiable information such as property ownership, loan responsibilities, legal property filings, rental applications, collection accounts, consumer bankruptcy, liens, judgments, and child support obligations.

How the Credit Bureaus Are Regulated

The Fair Credit Reporting Act (FCRA) of the United States governs how this and other credit bureaus can and must operate. The Federal Trade Commission (FTC) monitors them since they handle sensitive information for millions of people.

Credit reporting bureaus can only supply information and analytical tools to help businesses decide whether to extend credit to you and what interest rate to charge you. These choices are not made by the bureaus themselves.

How to See Your Three Credit Reports

You have the right to check your credit reports and obtain one free from each of the main credit reporting agencies once a year. To request a credit report, go to AnnualCreditReport.com or call 877-322-8228. provided you’ve been denied credit, you can acquire a copy of your report for free provided you request it within 60 days of being denied.

If you wish to see where you stand more than once a year, you can purchase additional credit reports directly from any of the CRAs at any time. Although they are different companies, Equifax and Experian provide credit reports that combine information from the three major credit reporting agencies into a single document.

What is a credit reporting agency?

A credit reporting agency, often known as a credit bureau, is a business that gathers and stores information about people’s credit histories and creditworthiness. These firms collect information from a variety of sources, including lenders, credit card companies, and public records, and use it to generate credit reports that are sold to lenders, employers, landlords, and other institutions that need to assess an individual’s creditworthiness.

How do I contact all 3 credit bureaus?

All three major credit bureaus in the United States – Equifax, Experian, and TransUnion – can be reached by phone, mail, or online. Each bureau’s contact information is as follows:

Equifax:

Phone: 1-800-685-1111
Online: https://www.equifax.com/personal/contact-us/ ↗
Mail: Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374-0256

Experian:

Phone: 1-888-397-3742
Online: https://www.experian.com/help/ ↗
Mail: Experian, P.O. Box 4500, Allen, TX 75013

TransUnion:

Phone: 1-800-916-8800
Online: https://www.transunion.com/customer-support/contact-us ↗
Mail: TransUnion LLC, Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016

Prepare to disclose personal information such as your name, Social Security number, and address when contacting credit bureaus to verify your identification.

What are the two types of credit reporting?

The two types of credit reporting are positive credit reporting and negative credit reporting.

Positive Credit Reporting
Negative Credit Reporting

Which credit report do banks use?

Banks and other lenders in the United States often use credit reports from one or more of the three major credit bureaus: Equifax, Experian, and TransUnion. These credit agencies are commonly utilized because they give complete credit reports that include information on a person’s credit accounts, payment history, outstanding amounts, and other creditworthiness characteristics.

Is a bank a credit reporting agency?

No, a bank is not a credit reporting agency. A bank is a type of financial institution that offers services such as receiving deposits, providing loans, and managing investments. When reviewing a loan application or granting credit, a bank may seek credit reports from one or more credit reporting bureaus to analyze an individual’s creditworthiness.

Who controls credit reporting agencies?

Credit reporting agencies are privately owned and operated businesses that are not directly overseen by the government. Credit reporting agencies, on the other hand, are subject to federal rules and inspection by the Consumer Financial Protection Bureau (CFPB), an independent organization intended to safeguard consumers in the financial industry.

The major federal statute that governs credit reporting organizations and their actions is the Fair Credit Reporting Act (FCRA). The FCRA establishes requirements for credit reporting companies’ collection, maintenance, and reporting of credit information, as well as how individuals can view and dispute their credit reports.

What is the credit agency role?

A credit agency, often known as a credit bureau, collects and maintains information about people’s creditworthiness and credit history. Credit agencies collect information from a variety of sources, including lenders, credit card companies, and public records, and use it to generate credit reports that are sold to lenders, employers, landlords, and other institutions that need to evaluate an individual’s creditworthiness.

Conclusion

Credit reporting agencies play a crucial role in analyzing the creditworthiness of potential consumers or clients for businesses. Also, businesses can receive useful information about a person’s credit history, payment history, outstanding balances, and other characteristics that impact their capacity to repay obligations by obtaining credit reports from credit reporting agencies. This data can assist businesses in making informed judgments about whether to extend credit, establish credit terms, or explore other financial arrangements with potential consumers or clients.

Credit reporting agencies also provide other services such as credit monitoring and identity theft protection, which can assist businesses in protecting their financial interests and preventing fraud or other financial losses.

However, businesses must be aware of the risks associated with relying primarily on credit reports from credit reporting organizations. Also, credit reports may contain inaccuracies or obsolete information, and some people may have little or no credit history, making determining their creditworthiness difficult.