What Are the Three Major Credit Bureaus?

TransUnion, Experian and Equifax are the three major credit reporting bureaus in the United States. These agencies each gather a detailed credit history to determine a consumers' risk for loans and financing by using FICO (Fair Isaac Corporation) scoring systems. It is possible for an account history to be captured by one bureau and not others, resulting in different credit reports and credit scores for consumers from each. According to My FICO, there is no such thing as one credit score.

TransUnion

TransUnion began in 1968 as parent company to a rail-car leasing operation and established its credit reporting business with the purchase of Credit Bureau of Cook County in 1969. The company gained full coverage of the United States, collecting market-active consumer information, in 1988. In 2002, TransUnion acquired TrueCredit.com and began offering report monitoring, and fraud and identity theft services directly to consumers. TransUnion currently manages the credit histories of millions of consumers in 24 countries besides the United States.

Experian

Experian began its United States credit reporting in 1996 when the British conglomerate GUS acquired TRW--which was the largest credit reporting operation in the United States at that time. Experian collects data from lenders, telecommunications and motor vehicle departments for consumer credit reports, and also offers monitoring and fraud protection services. Experian operates in more than 65 countries.

Equifax

Equifax is the oldest credit bureau operating in the United States, having started in 1899. Equifax manages the credit histories of businesses and consumers and offers monitoring and fraud-protection services. Equifax also offers a security freeze on reports which prevents inquiries from being made for a period of time.

Differences/Similarities

Transunion, Equifax and Experian have more similarities than differences. Inconsistencies among credit reports generated by each have more to do with the information supplied by credit lenders than the credit bureaus reporting it. Some department store credit lenders, and credit card companies, may only report your account to one credit bureau and not others, for example. For this reason, it is important to pull your credit report from all three bureaus, preferably at the same time, for the most accurate picture of your credit history.

Credit Scores

Your credit score is a number calculated from your credit report using a standardized formula. Mortgage companies will generally pull all three of your credit scores to determine your eligibility for a loan. Some auto companies may only pull one; which one depends on the lender. Lenders may also pull all three scores and use the score that falls in the middle to determine your risk.

It is imperative to pull your credit report and credit score from reputable sources. The Annual Credit Report web site, jointly run by TransUnion, Equifax and Experian, offers one free credit report from each bureau once a year (see Resource). Your credit score can be also be obtained from each for a fee.