Credit Bureau
Financial term in the Credit category
Definition
A company that collects and maintains your credit information, then sells it to lenders and other authorized parties as credit reports. The three major credit bureaus in the United States are Equifax, Experian, and TransUnion. Each bureau may have slightly different information, which is why your credit scores can vary between them.
Related Terms
Credit Report
A detailed record of your credit history maintained by credit bureaus, including your accounts, payment history, balances, and any public records like bankruptcies. Lenders, landlords, and sometimes employers review your credit report to assess your financial reliability. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com.
Hard Inquiry
A credit check performed when applying for credit cards or loans that appears on your credit report and may temporarily lower credit score by 5-10 points. Multiple inquiries within 30 days count as one for credit cards.
Fair Credit Reporting Act (FCRA)
A federal law enacted in 1970 that regulates how consumer credit information is collected, shared, and used by credit bureaus and other entities. The FCRA gives you the right to access your credit report, dispute inaccurate information, and be notified when your credit report is used against you. It also requires credit bureaus to investigate disputes within 30 days and remove information that cannot be verified.
Frequently Asked Questions
What is Credit Bureau?
A company that collects and maintains your credit information, then sells it to lenders and other authorized parties as credit reports. The three major credit bureaus in the United States are Equifax, Experian, and TransUnion. Each bureau may have slightly different information, which is why your credit scores can vary between them.
Why is Credit Bureau important in personal finance?
Credit Bureau is an important credit concept that helps individuals make better financial decisions. Understanding Credit Bureau can improve your financial planning and help you achieve your money goals.
How does Credit Bureau relate to Credit Report?
Credit Bureau and Credit Report are related financial concepts. A detailed record of your credit history maintained by credit bureaus, including your accounts, payment history, balances, and any public records like bankruptcies. Lenders, landlords, and sometimes employers review your credit report to assess your financial reliability. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com.
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