Get To Know The Credit Bureaus
Whenever you go to find out your credit score, you may have noticed that you have three different scores. All of the numbers are similar, but one might be much higher or much lower than the other two.
This is because there are three different credit bureaus who track credit ratings. While they all track the same information and use the same grading scale, the three bureaus each use slightly different criteria to determine credit scores and present their information in different ways.
Why does each bureau provide a different score?
Prior to 2006, each of the three credit bureaus used their own criteria to determine credit scores. In March 2006, the three agencies collaborated to create a uniformed credit scoring system called VantageScore.
This new model requires each credit bureau to use the same scale to rate credit scores. The bureaus say that any disparity between their scores is because each bureau is contacted by different companies that offer credit, and files can differ between the bureaus themselves.
What are the three bureaus?
The following are the three major credit bureaus that track credit scored in the United States.
Equifax
Equifax is the oldest of the three main credit agencies in the United States. Based in Atlanta, GA, the agency was founded in 1889 and maintains credit information on more than 400 million credit holders all over the world.
Experian
Experian was founded in 1980, and is based in Dublin, Ireland. They also own the popular credit checking website, FreeCreditReport.com.
TransUnion
TransUnion is the smallest of the three main credit bureaus in the United States. Based in Chicago, Illinois, TransUnion was created in 1968 by holding company Union Tank Car Company.
TransUnion began dealing in credit when it purchased the Credit Bureau of Cook County in 1969. TransUnion reached the status it has today by purchasing the credit bureaus of major cities and establishing service agreements with credit bureaus that were not for sale.
If you or someone you know is struggling with bad credit and in need of credit repair, please visit Pro-Credit-Repair for a free credit evaluation.
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- Know About Your Credit Score With Your Free Credit Report:
- Credit Bureau Protection From Fraudulent Score Activity
- All About Free Credit Score Services
- What to Look for in a Free Online Credit Report
- How Does Information Get Into Your Credit Report
Tags: credit bureau, credit report, free credit report
