July 27, 2025
Written by Jordan Merimee Navidar
Senior Content Editor, Chime
Senior Content Editor, Chime
Jordan Merimee Navidar is the Senior Editor of Chime's In the Green™. He has spent over a decade developing and editing finance and tech content that empowers readers with actionable advice.
Credit bureaus, including Equifax®, Experian®, and TransUnion®, are companies that collect your credit information to create credit reports.
Lenders use these reports to check your credit history. The bureaus themselves don't approve or deny loans.
You're entitled to a free credit report from each bureau every year, and it's helpful to check them for any mistakes.
If you find an error or suspect fraud, you can dispute it with the bureau or place a freeze on your credit for protection.
Understanding credit bureaus and how they operate will help you confidently navigate topics like building your credit and applying for loans.
Here's what you need to know about the three credit bureaus and how they work:
You may know a lot about how to build and manage your credit, but do you know who the gatekeepers of credit reports are?
Whenever you apply for a loan or line of credit, lenders want to know how risky a borrower you might be. To help them figure that out, they rely on credit bureaus to analyze your borrowing history
Credit bureaus, also called credit reporting agencies, collect and maintain your credit information. They then sell this information to lenders and other businesses.
A credit bureau's primary function is to give lenders a clear picture of your credit history so they can make informed lending decisions. They can also check public records for things like bankruptcies or tax liens. All of this information is put into a document known as your credit report.
Experian, Equifax, and TransUnion are the three major credit bureaus in the U.S. While there are others, these are the main three bureaus that lenders use. The information they collect is used to:
Calculate credit scores
Help lenders make decisions
Conduct some pre-employment background checks
Evaluate lease applications
Set insurance rates
These three bureaus use FICO® credit scores. They also co-created their own credit score, the VantageScore. Both scores generally range from 300 to 850, but they weigh information differently.
Because of this, and since not all lenders report to all three bureaus, your credit score might be slightly different at each credit bureau.
Financial services can seem mystifying, but they don't have to be. Here's a quick rundown of the top things you need to know about credit bureaus.
Credit bureaus don't have any say in whether you're approved or denied for a loan. They simply collect and organize your credit information for lenders. The lender makes the final call.
Thanks to the Fair and Accurate Credit Transactions Act, also called FACTA, you can get a free copy of your credit report from each of the three major bureaus once every 12 months.
Equifax, Experian, and TransUnion have voluntarily extended a program that allows you to check your credit report history once a week for free.1
Each of your credit reports might contain slightly different information. That's because not all creditors report to all three bureaus.
Since the information can vary, checking all three reports can help you make sure you don't miss any errors.
Financial records can stay on your credit reports for years. If you find information that is inaccurate or incomplete, you should contact the credit bureau directly to dispute it.
Errors can hurt your credit scores and could even be an indicator of identity theft.
If you think you're a victim of identity theft, you can ask any of the bureaus to place a fraud alert or a credit freeze on your report.
A credit freeze restricts access to your report, making it harder for someone to open a new account in your name. This service is free, and you can lift the freeze anytime you need to apply for credit.
While credit bureaus don't have the authority to approve or deny you for a loan, their role as the keepers of credit information is a big deal. Understanding how they work helps you become a more informed borrower. Review your credit reports regularly and get in touch with a bureau right away if something seems off.
For more information about understanding and reviewing your credit information, see our guide on how to read a credit report.
The three major nationwide credit bureaus in the U.S. are Equifax, Experian, and TransUnion.
No, credit bureaus only provide your credit information to lenders. The lenders themselves make the final decision to approve or deny a loan application.
You can actually get a free credit report once a week from the credit bureaus, though this report only includes your credit history. You are legally entitled to one free credit report that includes your credit score from each of the three major bureaus every 12 months through AnnualCreditReport.com.
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FICO® Scores are developed by Fair Isaac Corporation. The FICO Score provided by ConsumerInfo.com, Inc., also referred to as Experian Consumer Services ("ECS"), in Experian CreditWorks℠, Credit Tracker℠ and/or your free Experian membership (as applicable) is based on FICO Score 8, unless otherwise noted. Many but not all lenders use FICO Score 8.In addition to the FICO Score 8, ECS may offer and provide other base or industry-specific FICO Scores (such as FICO Auto Scores and FICO Bankcard Scores). The other FICO Scores made available are calculated from versions of the base and industry-specific FICO Score models. There are many different credit scoring models that can give a different assessment of your credit rating and relative risk (risk of default) for the same credit report. Your lender or insurer may use a different FICO Score than FICO Score 8 or such other base or industry-specific FICO Score, or another type of credit score altogether. Just remember that your credit rating is often the same even if the number is not.For some consumers, however, the credit rating of FICO Score 8 (or other FICO Score) could vary from the score used by your lender. The statement that "90% of top lenders use FICO Scores" is based on a third-party study of all versions of FICO Scores sold to lenders, including but not limited to scores based on FICO Score 8. Base FICO Scores (including the FICO Score 8) range from 300 to 850. Industry-specific FICO Scores range from 250-900. Higher scores represent a greater likelihood that you'll pay back your debts so you are viewed as being a lower credit risk to lenders. A lower FICO Score indicates to lenders that you may be a higher credit risk.There are three different major credit reporting agencies — the Experian credit bureau, TransUnion® and Equifax® — that maintain a record of your credit history known as your credit report. Your FICO Score is based on the information in your credit report at the time it is requested. Your credit report information can vary from agency to agency because some lenders report your credit history to only one or two of the agencies. So your FICO Score can vary if the information they have on file for you is different. Since the information in your report can change over time, your FICO Score may also change.Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether.
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