What’s a Credit Bureau? | Discover | Card Smarts

A credit bureau is a credit reporting company. Credit bureaus collect data about a person’s credit history from credit lenders and use it to calculate a credit score and create a credit report.

There are three major credit bureaus in the United States: Equifax, Transunion, and Experian. Your credit report and credit score can differ from one credit bureau to the next since they may have access to different information. Lenders review credit score and credit report to determine whether or not to lend money to a borrower.

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Credit bureaus are companies that help lenders assess creditworthiness, or how likely an individual is to pay back their debts.

Credit bureaus collect information about individuals from credit lenders, like payment history and amounts owed, to calculate a credit score and compile a credit report. The credit bureau sells this information to lenders like credit card companies, financial services companies, or cell phone providers. Then, lenders use the info to assess loan applications, determine whether to open a line of credit or lend money to borrower, or decide on an interest rate.

The three most used credit bureaus across the United States are Equifax, Transunion, and Experian. Since each credit bureau has access to different credit information about a borrower, the credit scores and credit reports produced by the credit bureaus may vary.

Everyone is entitled to a copy of their credit report from each agency once per year at no cost. So, it's important to review your credit report regularly to check for errors or fraudulent charges and confirm your credit and personal information is correct. This can help protect you from identity theft and credit card fraud.

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