What are credit bureaus? A guide to Equifax, Experian, and TransUnion.

Core Insights - The article emphasizes the importance of understanding the roles of the three major credit bureaus: Equifax, Experian, and TransUnion, which compile consumer credit information and generate credit reports that creditors use to assess loan eligibility and interest rates [1][3]. Group 1: Credit Bureau Functions - Credit bureaus, also known as consumer reporting agencies (CRAs), compile information about borrowing and repayment history from creditors to create credit reports [3]. - Each bureau collects its own data, leading to potential variations in credit reports and scores across the three agencies [4]. - Creditors, not the bureaus, make decisions on loan qualifications based on personal information, including credit reports, income statements, and employment history [4]. Group 2: Fair Credit Reporting Act (FCRA) - The FCRA, enacted in 1996 and amended multiple times, ensures accuracy, fairness, and privacy in consumer reporting [6]. - Consumers have the right to access their credit reports for free and can dispute errors, which the bureaus are required to investigate [7][8]. - The FCRA mandates that negative information must be removed from credit reports after seven years [7]. Group 3: Accessing Credit Reports - Consumers can obtain free copies of their credit reports from each bureau once per week through AnnualCreditReport.com, the only federally authorized source [9]. - Special circumstances allow for additional free reports, such as placing a fraud alert or being denied credit recently [10].