The Role of TransUnion, Equifax and Experian in Credit Reporting
TransUnion, Equifax and Experian are three of the four major credit reporting agencies in the United States. They collect and maintain data on the creditworthiness of individuals and businesses in the United States. This data is used by lenders to make decisions about whether to approve or deny a loan, and by businesses to determine whether to offer credit to a potential customer.
The credit reporting agencies are subject to a number of regulations from the federal government and the states. They must comply with the Fair Credit Reporting Act (FCRA), which sets out the rules governing how the agencies collect and use data. The FCRA also requires the agencies to provide consumers with a free copy of their credit report every year.
The FCRA has been criticized for its lack of transparency. The agencies are not required to disclose how they use the data they collect, which makes it difficult for consumers to understand their rights under the law. In addition, the FCRA does not require the agencies to notify consumers if their credit report is inaccurate.
The FCRA is scheduled to be replaced by the Consumer Financial Protection Bureau (CFPB) in July 2019. The CFPB is expected to make changes to the FCRA that will increase transparency and protect consumers’ rights.
The three credit reporting agencies are Equifax, Experian, and TransUnion. They are all major players in the credit industry and each has its own strengths and weaknesses.
Equifax is the largest of the three, with a market share of about one-third. It has a good reputation for its customer service and has a wide range of products and services.
Experian is second in size, with a market share of about one-quarter. It has a good reputation for its customer service and its products and services are tailored to meet the needs of small businesses.
TransUnion is the smallest of the three, with a market share of about one-tenth. It has a good reputation for its customer service and its products and services are tailored to meet the needs of consumers.
