A credit reporting agency (CRA) — also called a credit bureau — is a company that collects information about how you manage your credit and bills. The agencies then use your data to create a report for you.
The three major CRAs are:
- Equifax
- Experian
- TransUnion
There are also many minor/specialty credit reporting agencies that also gather and utilize consumer data. Always do your research on who they are and what their purpose is.
These CRAs use consumer data from lenders, banks, landlords, and public records to generate what is called your “credit report.” These reports are used to determine your creditworthiness. Your credit report is used to determine whether you can qualify for a mortgage, car loan, personal loan, and even is used in the job application process.
You don’t get to choose which CRA you want your information to be stored with — the credit bureaus collect information automatically from the furnishers (banks, credit card companies, credit unions, any financial institution) they have agreements with. The furnishers are not required to report credit data, but if they choose to do so, they have an obligation and responsibility to report accurate data.
So what can you do? You can review, correct, or freeze your credit at any time.