The Three Major Credit Bureaus

The thought of pulling your credit can make most people a little uncomfortable. Often times people are nervous about what they may find on their report, some new surprise that they didn’t even know existed. Many consumers aren’t even sure where to access their credit reports. 

The credit reporting industries inception was in 1899 and it remained virtually unregulated until Congress passed the initial Fair Credit Reporting Act in 1970. Since that time there have been many amendments, including consumer rights and protections. 

The credit bureaus are agencies that hold billions of credit histories on consumers and commercial entities. The credit reporting agencies provide data to lenders to use to determine an individuals credit worthiness. 

The three major credit bureaus are Equifax, Experian and Transunion. Do you know you may have a different score with each one of the major bureaus? Yes, that’s right, your credit score may not be the same with each credit bureau. Each credit bureau uses its own mathematical formula to calculate your credit score. 

Experian uses the “Plus Score” as it’s scoring method. Equifax uses the “Credit Score” and Tranunion uses the “TransRisk”. The higher your credit score the lower you are as a credit risk. All these methods are similar to the Fair Isaac Corporation (FICO) score whose range is from 300-850. 

Understanding your credit will help to remove some of the anxiety we all feel when we think of our credit score and the impact it can have on your life.