What Are the Three Major Credit Reporting Companies?

Three companies---Equifax, Experian and TransUnion---control the credit file that most lenders see when you apply for a loan. However, they do not necessarily control your credit score. Another company, the Fair Isaac Corporation, has a proprietary formula that the major bureaus use when you purchase your score from them. The bureaus themselves, however, are mostly the same with subtle differences.

History

Equifax has the longest history of any of the bureaus. Cator and Guy Woolford started Retail Credit Company to collect payment history on local grocery store customers. RCC was the largest credit bureau until the 1970s when it changed its name to Equifax. Experian formed in 1980---then known as CCN Systems---and is the youngest of the major bureaus and the only foreign company. CCN was based out of England, but acquired U.S. defense conglomerate TRW Information Services in 1996. TransUnion started in 1968 as a subsidiary of Union Tank Car Company to collection information on clients. Their credit reporting took off when it acquired Credit Bureau of Cook County and its files on 3.6 million people in 1969.

The "Fourth" Bureau

Technically, a fourth bureau exists: Innovis. However, this company does not sell credit reports to the general public. Their credit reports only affect the types of loan offers you receive through the mail, so it might not be as important as a report from the other three. It might more become important for consumer credit reporting in the future, because Fannie and Freddie mortgage providers must report to Innovis. As of 2011, you cannot request your free Innovis report, even though the Fair Credit Reporting requires it.

Any Differences Between Them?

Equifax, Experian and TransUnion function in basically the same way and report the same the data. The difference lies in their ability to acquire data. The bureaus sometimes miss items, such as a collections account, which leads to most consumers receiving a different report from each bureau. They also have slightly different reporting standards. Experian, for example, acquired RentBureau in 2010, so it reports some rental histories, while the other generally do not.

Annual Credit Report

The bureaus rarely work together, except on the Annual Credit Report website, which federal law requires. Experian, Equifax and TransUnion must provide a free credit report each year and in some cases, such as when you are reject for a job due to credit problem, more. The Annual Credit Report website is the only way to get your free reports. The individual agency websites can---and do---charge for reports.