Written by Dan Green
Dan Green
Dan Green (NMLS 227607) is a licensed mortgage professional who has helped millions of people achieve their American Dream of homeownership. Dan has developed dozens of tools, written thousands of mortgage articles, and recorded hundreds of educational videos. Read more about Dan Green.
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This article was checked for accuracy as of November 4, 2024. Learn more about our commitments to accuracy and your mortgage education in our editorial guidelines.
Updated: November 4, 2024
A credit bureau is a company that gathers, maintains, and provides information to mortgage lenders about a home buyer’s credit history.
Credit bureaus, also called credit reporting agencies, collect and report on financial data from many sources, including banks, credit card companies, collection agencies, and government records.
Data collected by credit bureaus includes information about student loans, personal loans, and other loans; credit card usage and payment history; and records of bankruptcies or other negative financial outcomes.
Credit bureaus compile this data into credit reports, which lenders use to assess a home buyer’s mortgage application and overall creditworthiness. Credit bureaus are responsible for maintaining accurate records but do not make lending decisions themselves.
When a first-time home buyer seeks pre-approval, the lender requests a credit report from one or more credit bureaus. However, because each bureau collects and reports data independently, the buyer’s credit scores and reports can vary.
Mortgage lenders do not expect credit bureaus to provide identical data. As part of the pre-approval process, lenders often combine reports from two or three bureaus into dual-merge or tri-merge reports, respectively. This allows them to get a broader view of the buyer’s credit usage and financial habits.
Merged credit reports show how a home buyer manages credit, pays bills, and handles spending, helping lenders make decisions regarding mortgage applications.
The three main credit bureaus in the United States are Equifax, Experian, and TransUnion.
You are entitled to a free annual credit report from each of the three major credit bureaus through AnnualCreditReport.com.
You can file a dispute with the credit bureau. Credit bureaus are required by law to investigate and correct any verified errors, including inaccuracies related to medical debt, judgments, and more.
No, credit bureaus collect and compile credit reports. Credit scores are calculated by other entities based on the data provided in these reports.
Credit bureaus receive financial data from lenders and creditors based on your past and current credit activities.
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A credit bureau is a company that gathers, maintains, and provides information to mortgage lenders about a home buyer's credit history.
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