Credit reporting agencies collect an individual’s financial information, compile it into a credit report and, for a fee, make it available to the individual and to other authorized parties, including financial institutions. Generally when you apply for a loan you give the lender permission to get a copy of your credit report. Companies that lend money rely on credit reporting agencies and the credit reports they generate to help them assess a customer’s ability to repay what they borrow.
Although there are many local and regional credit bureaus throughout the United States, most credit bureaus are either owned or under contract to the nation’s three major credit reporting agencies: Equifax, Experian (formerly TRW) and TransUnion.