Credit bureaus are agencies which collect credit data of individuals and companies that state how well they maintain their finances. The idea of credit reporting have started only in the mid of 18th century. At that time, it was done as a local process. They have functioned in a way such that it has provided the warning against selling goods or lending money to those who had bad history of not making the regular payments.
After World War I, however the need for national credit reporting agencies have started to become apparent. Today, we have 3 main credit bureaus each one of them handle few or more regions. Let me tell you what are the three credit bureaus now. 3 major credit bureaus are Equifax, Experian and TransUnion. Although there exist so many smaller regional credit bureaus, on the whole these all are related to one of the 3 major credit bureaus.
What Are the Three Credit Bureaus?
It is the oldest of all credit bureaus. It was started in 1899 with the name Retail credit company in Georgia. Later on, in 195 its name was changed to Equifax. Although this company has started its journey as a local company, by seeing the potential they have turned the company to offer the national credit reporting service.
As a part of Union Tank Car Company, Trans Union was Started in 1969.When this company has acquired CBCC, it has taken the credit reporting business in full swing and continued to expand by the year 1988. Right now, this credit reporting company is active in 25 countries .It includes United States as well.
As a part of CNN times, Experian was started in 1980. At the time it has purchased TRW Information Systems in the year 1996, this company has been transformed into one of the major national credit bureau. By the year 2009, this credit bureau has founded branches in thirty eight companies. It also has clients in sixty five countries.
Apart from knowing “what are the three credit bureaus”, it’s good to know about its other services too. These credit bureaus offer credit information about businesses and individuals. Services offered by these credit bureaus are particularly useful for the companies that are dealing with the B2B transactions. Because by using the credit information, businesses can easily know and aware of the trust worthiness of any particular company. In order to help the companies, these credit bureaus also offer the consulting services that help them to come up with the better on time billing methods.
Credit bureaus maintain a tight lipped attitude towards their credit score calculations. Because they fear, if the people know how the credit scores are being calculated they would easily change their behavior accordingly just to attain the high credit scores. This could defeat the true value of the scoring system.
The Bottom Line
Whatever may be their formula, making the on time payments and maintaining the good financial behavior will get you attain the excellent credit score.