Most people speak of having a “score” when in fact most people have at least three or more scores – and these scores can vary widely. There are three major credit bureaus in the country that develop reports and calculate scores. There are also a number of smaller credit bureaus.

Plus, some larger lenders calculate their own credit risk scores based on information in your credit report. When repairing your reports, then, you should not focus on one number – at the very least, you need to contact the three major bureaus (TransUnion, Experian, Equifax) and work on repairing the three credit scores separately.

What is a credit bureau?

Lenders often check your credit history from one of the credit bureaus when you ask for credit. If you don’t know what credit bureaus are or what they do, this process could seem confusing, but the idea behind it is actually fairly straightforward.

When you apply for credit, a lender will receive information about your credit usage and history from a credit bureau, which is a simple organization that collects this data. It’s critical to comprehend how each credit bureau operates because the methods used to obtain and compile your information vary.

To sum up, Experian, Equifax, and TransUnion are the three main credit bureaus.

What does a credit bureau do?

A credit bureau is an organization that collects data on your credit history and compiles it into a credit report. This usually comprises the length of credit history, the number of credit accounts, and the payment history.

When you apply for credit cards, mortgages, and auto loans, financial institutions and other parties, including real estate and auto firms, may access information from your credit report. Credit bureaus merely gather and deliver information to lenders; they do not make loan decisions. This data is used by lenders to assess your creditworthiness.

How to get a free credit report and credit score?

You are entitled to one free credit report per year from each of the three major credit agencies, Experian, Equifax, and TransUnion, as per the Fair Credit Reporting Act. These reports are available at the federally permitted annualcreditreport.com at no cost.

Every month, Experian and other sources might update their credit reports. You should be aware that while your Experian credit report is free, access to your TransUnion and Equifax reports requires that you subscribe to a premium membership.

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