Credit bureau
Also called Credit reporting agency, Consumer reporting agency
A company that collects information about how people use credit and sells it as credit reports to lenders and other approved users.
What it means
Credit bureaus gather data from lenders, collection agencies and public records, then organize it into credit reports. In the U.S., three major credit bureaus maintain nationwide files on most adults, and they operate separately, so each may hold slightly different information. Credit scores are calculated from the data in these reports.
Bureaus are private companies regulated by federal law, which requires them to keep information accurate, investigate disputes and give consumers free access to their reports. They also process credit freezes and fraud alerts. A bureau does not decide whether you get a loan; the lender makes that decision using the report and score.
Example
For example, when a person pays a credit card bill late by more than 30 days, the card company may report the late payment to one or more of the three major credit bureaus, and it then appears on those reports.
How it’s used
- Requesting free credit reports
- Disputing an error on a report
- Placing or lifting a credit freeze or fraud alert
Related terms
Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.