Frequently Asked Questions

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » FAQs » Building Credit History » What does a credit bureau do?

What does a credit bureau do?

Answered by , at
Add to Favorites:

Tags: ,

Leo Zhu

Credit bureaus collect information about consumers’ financial behavior so potential creditors, employers and landlords can make informed decisions about whether to extend lines of credit, rent apartments, or make employment offers.

The three major credit bureaus – Experian, Equifax and TransUnion – record personal information such as address history, birthdate and Social Security number, as well as account history (when accounts were opened, if they were closed by the consumer or by the credit issuing agent), payment history and other financial details. They do not have access to employment or income information.

Credit scores are assigned using on the information that credit bureaus collect. FICO scores are based on the following elements:

  • Payment history: 35%
  • Available credit or debt-to-credit ratio: 30%
  • Length of credit history: 15%
  • New credit requests: 10%
  • Mix of credit types: 10%

To achieve the best possible credit score, it’s important to take all the above factors into consideration.

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
No Annual Fee
For Bad Credit
Monthly reporting to the three major credit bureaus
For Fair/Bad Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit

Other Questions in
Building Credit History