Credit Bureaus: Their Purpose And Profit

Credit bureaus, also known as credit reporting agencies (CRAs), are for-profit entities that collect financial data to create credit reports and scores used by lenders to make credit decisions. The three major U.S. bureaus, Equifax, Experian, and TransUnion, are not government-owned and operate independently, competing for market share. They profit by selling credit information to lenders, marketers, and consumers, as well as offering credit-related services and decision analytics. There are also smaller bureaus that focus on specific areas like rentals or checks. Consumers can access their credit reports annually for free and can improve their credit scores through responsible financial behavior.