National Credit Bureaus

National Credit Bureaus: the name is a bit misleading because it gives the impression that these agencies are in some way affiliated with the government and has some sort of legal control over your credit.

Let us clarify.

The following national credit bureaus operate primarily in the United States, but are also used in Canada and Mexico, and by other companies hoping to check the credit of Americans. They are for profit ventures that make their money by compiling massive databases of credit information.

Retailers and law firms and anyone who is looking for credit reports pay a fee to access this information. That is how they make money. There are three major national credit bureaus in the United States. They are:

• Equifax
• Trans Union
• Experian

There are also many smaller more specialized credit bureaus but they are rarely used, or only used for specific credit information like mortgages and cars. The largest of these smaller ones is called Innovis.

It is also important to note that the national credit bureaus compete with each other. That is not to say they compete by trying to offer you the best credit they can. They compete to give the retailer and the lender the most accurate information about YOU.

However, this may seem like a burn, it actually works in your favor. If one credit company gives you a bad credit rating, the retailer or lender can then check with the other two agencies and they may have a different option based on their data. This means that you have a better chance of getting your loan or credit.

It also means that they keep each other honest and accurate. Not that this is a real big issue. After the great depression the US government cracked down on shameless credit operations. Now all three national credit bureaus are subject to the strictest law and scrutiny when given out credit reports.

So next time you are looking to get a credit card or a credit report you an be sure that one, two or all three of the national credit bureaus are being consulted to make sure that you and your credit rating are being properly represented.