How to Compare Credit Reporting Companies

Credit reporting companies, also known as credit bureaus, are storehouses for consumer credit history. Throughout the United States, there are more than 1,000 local and regional credit reporting companies, but the majority are under contract or owned outright by three primary national credit bureaus: TransUnion, Experian and Equifax. Each uses its own version of the FICO (Fair Isaac Corporation) credit-scoring method to rate consumer credit. Your FICO score plays a central role in your ability to acquire loans, insurance, credit cards, jobs and in some cases, housing.

Instructions

1

Research the three credit reporting companies to learn about the products and services each offers, such as identity theft protection, continuous credit monitoring, credit reports and scores. They each have their own websites online, and you can find comparison information offered by other companies online as well, such as HowToEstablishGoodCredit.com and Credit-Report-Review.com. Credit-Report-Review offers rankings and detailed information about products available from some of the smaller credit reporting agencies, including which of the three major bureaus each agency uses for their credit monitoring services.

2

Order your credit report from each of the three national credit bureaus. You are entitled to one free report from each agency every 12 months. The three bureaus have established a central website -- AnnualCreditReport.com -- where you can order your reports, either one at a time or all at once.

3

Check over your reports carefully for erroneous information. The credit bureaus don't gather and report your information in exactly the same manner, and mistakes do get made that could affect your credit rating, so you should report any errors to the particular reporting bureau immediately. Occasionally, someone else's information could end up on your report, such as someone with the same name or a similar Social Security number.

4

Decide on your purpose for ordering your credit report. Comparing credit reporting companies may simply come down to a personal preference on your part and how well you can interpret the information within the varying formats offered by each bureau. If you require the reports because you will be getting a home or car loan soon, keep in mind that lenders may look at any one of the three reports, and they are not obligated to tell you which one they use.

5

Purchase your credit report with a score. Unfortunately, the free yearly reports you are entitled to do not come with a credit score. You can purchase individual reports from each bureau (fees range from $14.95 to $15.95), or they each offer a three-in-one credit report and score that includes a score from each bureau, which typically costs around $39.95.

6

Compare your scores from each of the credit reporting companies. Do not expect to see an identical score, as all three bureaus may not have the same credit information about you, and all lenders do not necessarily report their data to all three bureaus.