What do Equifax, Experian, and TransUnion do?
Complete credit reports on individuals
Help you to improve your credit score
Decide whether to approve or reject a loan application
Ensure no one is able to see their credit report
Equifax, Experian, and TransUnion are the three major credit reporting agencies in the United States. Their main purpose is to collect and maintain credit information on individuals.
1. Complete credit reports on individuals: These agencies gather and consolidate various financial and credit-related data on individuals, including their payment history, outstanding debts, credit utilization, and public records like bankruptcies or liens. They use this information to create comprehensive credit reports for each individual.
2. Help you to improve your credit score: While they do not directly help individuals improve their credit score, these agencies provide tools, resources, and information on how to manage credit effectively. They offer credit monitoring services and educational materials to help consumers understand and enhance their credit profiles.
3. Decide whether to approve or reject a loan application: Lenders typically check an individual's creditworthiness before approving or rejecting a loan application. They do this by requesting credit reports from one or more of these credit reporting agencies. Based on the information in the reports, lenders can assess the level of risk associated with lending money to an individual.
4. Ensure no one is able to see their credit report: Equifax, Experian, and TransUnion are responsible for maintaining the accuracy and security of the credit reports they hold. They have measures in place to ensure that only authorized entities, such as lenders or credit card companies, can access an individual's credit report. Additionally, individuals have the right to request and review their own credit report to ensure its accuracy and address any errors or discrepancies.