How Do Credit Bureaus Get Their Information?
Credit bureaus receive data voluntarily from lenders, credit card companies, banks, and other creditors who report account activity monthly. They also collect public records like bankruptcies, liens, and judgments from court documents. Lenders are not required to report to any specific bureau, which is why your reports from the three bureaus may differ. Utility and rent payments are typically not reported unless you use a special reporting service.
How Are the Three Major Credit Bureaus Different?
Equifax, Experian, and TransUnion each collect and report data independently. They use similar processes but may have different information because not all lenders report to all three bureaus. They each also offer their own proprietary scoring models alongside FICO. Checking all three reports is important because a lender can pull any one of them — or sometimes all three — when evaluating an application.
What Rights Do You Have With Credit Bureaus?
Under the Fair Credit Reporting Act (FCRA), you have the right to: one free annual credit report from each bureau, dispute inaccurate information (bureaus must investigate within 30 days), know when your credit is used against you in an adverse decision, add a fraud alert or freeze your credit, and have outdated information removed after the required reporting period. These rights are free to exercise and do not require any third party.
Frequently asked questions
Do all lenders report to all three credit bureaus?
No. Reporting to credit bureaus is voluntary and costly, so some smaller lenders report to only one or two bureaus. This is why the same account might appear on your Experian report but not your TransUnion report. To get a complete picture, check all three reports regularly.
Can credit bureaus sell my information?
Bureaus can sell your credit information to entities with a permissible purpose under the FCRA, such as lenders, insurers, employers (with consent), and landlords. They also sell pre-screened lists to creditors for marketing offers. You can opt out of pre-screened marketing at OptOutPrescreen.com.