Credit Reporting Agencies in the United States

Credit reporting agencies, also known as credit bureaus, are companies that keep records on how well individuals pay their bills. Companies who lend money will check the credit reports of individuals who apply for loans so lenders can determine how creditworthy the applicant is. If a person has a history of not paying back money, the company will see that on the credit report and be protected against making a loan to that person. There are three major credit bureaus--Equifax, TransUnion and Experian--in the United States that are used by consumers and lenders. A fourth, CBCInnovis, works mostly with business transactions rather than individual consumers.

Equifax

Equifax is the oldest of the major credit bureaus in the United States, having been opened in 1899 in Georgia. It was originally named the Retail Credit Company and wasn't known as Equifax until 1975. Equifax works with individuals and companies and provides credit information to help lenders manage default risks. In the United States, Equifax is the biggest credit bureau. It has more than 7,000 employees in the Americas and Europe.

TransUnion

The Union Tank Car Co. founded TransUnion in 1969 when it bought the Credit Bureau of Cook County. It was the first of many acquisitions that helped TransUnion develop a nationwide network of credit reporting bureaus so the company could give accurate reports on the credit risks posed by individuals across the country. By 1988, TransUnion had achieved its goal of nationwide coverage. In 2009, the company had expanded to more than 20 countries.

Experian

Experian was the only one of the three main bureaus that was not founded in the United States. The company opened in Nottingham, England, in 1980 and moved across the Atlantic in 1996 when it bought TRW Information Systems. The company is active in almost 40 countries as of 2009.

CBCInnovis

A fourth national credit bureau is CBCInnovis. CBCInnovis was founded in 1948 as the Credit Bureau of Columbus. This credit bureau focuses on government, business and other nonprofit sectors. CBCInnovis provides a variety of credit reports, including business credit reports, employment credit reports and property management history reports.

Credit Report Agencies Responsibilities

Credit bureaus have come under increasing government regulations that restrict who they can give credit reports to and the rights of consumers. Credit bureaus can only release your credit report to companies with a legitimate business interest, such as a bank you've applied for a loan at or an employer who is considering hiring you. Credit bureaus must also provide you with a free credit report, but not a free credit score, once per year, if you request it.