Credit Bureau

Credit bureau is the term for a local or national institution that collects data on individual consumer creditworthiness, and reports that data to its members or subscribers.  

In the past, there were many bureaus, each keeping their own records. Often the files were just on paper, and the credit reports were verbal. A bank could call and ask someone whether or not you'd be a good risk for an auto loan.

Now the information from each local bureau has been almost entirely consolidated and computerized by three national repositories:  Experian, Trans Union, and Equifax. Information from the three bureaus is available to lenders, landlords, employers, and others having a permissible purpose and an approved membership account with the repository. The report, in almost all cases, is ordered over a computer or terminal. More and more, these days, secure Internet sites are being used by businesses and financial institutions to get your report quickly.

Though over 1000 local bureaus still exist (see your Yellow Pages under Credit Reporting Agencies), for most purposes, you just need to be concerned with the big three, and what their files say about you.

Most local bureaus are affiliated with Experian, Trans Union, or Equifax. In some areas, it is the local bureau that actually owns the data that is reported by the big national bureau. That's why, to get your file corrected, it is best get a copy of your credit report, and to use the phone number and/or address indicated as the consumer relations contact. The contacts are different in different parts of the country.

About Credit Reports

Actually, three national companies maintain data on the creditworthiness of millions of consumers in the United States. The companies are Experian, Equifax, and Trans Union. (Experian's business was formerly part of TRW. Many people still call it my TRW report - but the term is now incorrect.)

It is likely that each one of the major credit bureaus has an active file on you if you have ever applied for a loan, Master Card, Visa, or other revolving account, such as those offered by department stores.

For the most part, the information as reported by each of the three bureaus is the same. You can see your credit report from a single bureau by clicking here with complete privacy. The report is delivered to you online in 30 seconds or less if your identity can be verified.

Since the three bureaus do not share the data among themselves, differences are not unusual. Your history as reported by each can be merged and combined into a single printout. You can order your merged credit report of Experian Equifax and Trans Union here. It can be  delivered to you online in less than a minute! Many lenders, landlords, and other companies just check one of the reports before doing business with you, but you can eliminate surprises about what they might find by checking all three.

It is called an inquiry when a company looks at your credit report. All inquiries must be logged by the reporting agency, and recent inquiries are shown as part of each report. Thus, if you applied for a loan yesterday, and today you are applying for a loan somewhere else, the second lender knows about the first - if they both are using the same agency to get their reports. (Your own inquiries are not revealed to others.)

The major companies with whom you have accounts report periodically on whether your payments are current or not. You can get monthly email updates to monitor changes in your credit report status.

As you become aware of what is being reported about you, you may need to know the answers to these questions:

• What is the procedure to correct errors in my credit report?
• How can I dispute a false item in my report
• How can I contact Equifax, Experian, and Trans Union?
• How can I solve my credit problems?
• Is there a dispute form I can use?

Credit Score

Most creditors decide whether or not to do business with you, and on what terms, based on the history they see in your report. To make the decision accurately, creditors often use credit scoring systems to determine if you'll be a good risk for credit cards, auto loans, home loans, cell phone accounts, and most everything else. Information about you, your bill-paying history, recent inquiries, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using repayment statistics from consumers with similar profiles, credit scoring systems award points for each factor that helps predict who is the best risk.

You can see your credit score to anticipate how lenders are likely to evaluate you in terms of creditworthiness for repaying a loan and making the payments when due. Each lender has their own cutoff points, there is more than one kind of score, and other factors may be considered as well - but your score and the reasons behind it are extremely important in your ability to get the financing terms you want. Here's more information about credit scoring, and answers about "What is my FICO score?"

Privacy and Theft

When you obtain credit, there are new concerns these days. You may be sent offers and solicitations based on your credit rating. Fortunately you can stop many bulk mail or "junk mail" offers using the marketing list opt out. (The state DMV might also be giving out your private information, and, in many states, you can contact the Department of Motor Vehicles here to stop it.)

The reliance on credit information makes a new kind of crime victim possible. To help you, we explain identity theft, provide an identity theft action kit, and a version you can print. If you feel that you are the victim of fraud, you can have an alert added to your file. Contact the credit bureau fraud departments here.

Free Credit Reports

In certain states, and under certain conditions you may qualify for a free credit report. Here's the information on free credit reports.

If you need to see your report now, make sure you are using a service that actually provides it on-line. See Online credit reports - Don't be misled!