In detail
A credit bureau, also known as a consumer reporting agency, is a company that collects and maintains information about consumers' credit accounts, payment histories, and public records. In the United States, these companies operate under the federal Fair Credit Reporting Act (FCRA), which sets rules for what they may include in a consumer report and how they must handle disputes. The three largest nationwide consumer reporting agencies are Equifax, Experian, and TransUnion, but many smaller specialty agencies also exist for purposes such as employment screening or tenant checks. Credit bureaus do not lend money or decide whether you qualify for credit. Instead, they compile data supplied by creditors, courts, and other sources into a credit report, which they sell to lenders, insurers, landlords, and employers who have a permissible purpose under the FCRA. Because the information in these reports can affect decisions about loans, housing, and jobs, the FCRA gives consumers the right to see their reports, dispute inaccurate information, and seek correction of errors. The term credit bureau is often used interchangeably with credit reporting agency, but the two mean the same thing. A credit bureau may also be called a nationwide consumer reporting agency if it operates across the country. Credit bureaus are separate from lenders, and they do not provide advice or counseling to consumers. They are also distinct from the websites that offer credit monitoring services, though some of those services may obtain data from credit bureaus.