Credit bureaus are credit reporting agencies (CRAs) that collect information about consumers
and provide it to banks, credit card companies, employers, prospective landlords, etc. The
three major CRAs are Experian , Equifax and TransUnion.
CRAs access your payment information directly from the companies you have credit with, as
well as from government agencies such as the legal court system. They use this historical
information to create your credit report. This detailed consumer report tells everything about
you, including where you work and live, timeliness of your bill payments on time and whether
you've ever been arrested, sued or filed for bankruptcy.
Credit bureaus use the information in your credit report to determine your credit rating on the
day it's requested. Your credit score is important because most lenders will use it to
automatically judge if you're a good credit risk. Credit scores, also known as FICO cores,
generally range from 350 to 850. Most lenders will work with you if your score is at least 620. If
your rating is 720 or higher, they'll consider you the most trustworthy type of borrower and
offer you their best (lowest) interest rate.
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