One of the more sobering things about adulthood is learning about the credit reporting system and how it can impact such a large part of your finances. And it might be even more tangled than you think. Even if you’ve heard of the three major credit bureaus—Equifax, Experian, and TransUnion—you might not realize that other credit bureaus are also collecting and selling your information in a way that can affect your decision-making.
From securing that dream job to making a deposit when you hook up utilities, these small credit agencies may impact your life in bigger ways than you imagine.
Your FICO scoreFair Isaac Corporation (FICO) isn’t a credit reporting agency, but you’ve probably seen the name when reviewing your credit score or report. It’s one of the most widely used models of credit scoring. FICO takes information from your credit reports, crunches it using a complex formula, and spits out a three-digit score from 300 to 850, with higher being better. Your FICO scores can vary depending on which credit reporting agency the information is based on.
FICO also has different models that focus on specific types of loans or transactions. For example, the FICO Auto Score 10 is designed to emphasize information that auto lenders and dealers can use to assess the creditworthiness of borrowers hoping to finance a car.
Small credit reporting agencies that focus on financial behaviorYou might be surprised at the number of alternative credit bureaus that collect your information. Some of these secondary data-gathering agencies even create their own scores based on your history.
The following secondary credit reporting agencies look at your banking habits, how you handle subprime debt, and monthly bills that major credit bureaus might not report.
Collects information on checking accounts, including openings and reasons for closures Used by banks to determine whether you qualify to open a new checking account Is owned by a subsidiary of Fidelity National Information Services, Inc. (FIS)Allows one free credit report and score each year upon requestCertegy Payment Solutions
Collects information on checking accounts, including check-writing history Offers automated clearing house (ACH) verification for companies that accept checks, including casinos and gaming establishments Grants one free credit report each year upon requestClarity Services, Inc.
Collects information on subprime consumer behavior, including payday loans, check-cashing services, rent-to-own agreements, and telecom (mobile phone) accountsProvides information to help financial institutions make decisions based on actions that might not be reported to the major bureausIs owned by Experian (EXPGF)Permits one free credit report and score each year upon requestDataX, Ltd.
Compiles payment information on payday loans, small installment loans, and subprime or secured credit cardsUses the information it gathers, which isn’t traditionally reported to the major bureaus, to score subprime borrowersIs owned by Equifax (EFX)Permits one free credit report each year upon requestEarly Warning Services, LLC
Monitors payment behavior to detect fraud connected to bank accounts and payment processorsOperates the Zelle payment-to-payment network used by many major financial institutionsIs co-owned by Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells FargoProvides one free credit report each year upon requestFactorTrust, Inc.
Collects performance information related to non-prime customers, including short-term loan payment history, non-prime auto lenders, leasing companies, and installment lendersUses its information to create predictive credit models that can offer risk scoring to lenders that specialize in subprime loansIs owned by TransUnion (TRU)Allows one free credit report each year upon requestTeleCheck Services, Inc.
Collects data about check writing and fraudProvides information to service providers and retailers who accept checks as well as financial institutions that offer checking accountsIs owned by Fiserv, Inc. (FI)Allows one free credit report each year upon requestSmall credit reporting agencies that focus on bill paymentIn some cases, alternative credit bureaus collect information about how you’re paying your bills to create alternative scoring when you might not have a traditional score.
Compiles data on recurring bills, including streaming services, utilities, cell phone plans, rent, and car insuranceTypically provides its information to providers of rent-to-own services and short-term loans as well as retailers that offer financingPermits one free credit report each year upon requestNational Consumer Telecom & Utilities Exchange
Focuses on utility and telecom companies, including account openings and past-due amounts, and includes charge-offs and other adverse behaviorsAllows members to share information that can impact approval for some services, as well as determine whether deposits are required from customersContracts with Equifax to manage its database, although Equifax isn’t a memberPermits one free credit report each year upon requestSageStream, LLC
Compiles data on bill payments and other behaviors, offering supplementary reports that can enhance an understanding of consumers’ habitsTypically gives data to utility companies and telecom providers, as well as some retailers and credit card issuersIs owned by LexisNexis Risk Solutions, part of RELX Group (RELX)Supplies one free credit report each year upon requestSmall credit reporting agencies that focus on insuranceYour insurance premiums might be affected by information in a secondary credit report from a small bureau focused on claims and losses. An insurer might even turn you down because of information in one of these reports.
Collects data on insurance claims, including loss history connected with auto, home, and personal propertyReports information to insurers that might want information about how often you file claims and whether other companies consider you an insurance riskIs a subsidiary of Verisk Analytics, Inc. (VRSK)Allows one free credit report each year upon requestInsurance Information Exchange
Focuses on compiling information about traffic violations and other items related to motor vehicle recordsReports information to auto insurers about your behaviors; employers and others can use these reports for background checks, including for government sanctionsIs also a subsidiary of VeriskProvides one free credit report if its information results in an adverse actionMIB, Inc.
Compiles data on medical conditions with your permission and collects information about hazardous work conditionsReports its data to life insurance companies and medical insurers who may use the information to determine premiums or whether you’re eligible for certain life insurance policiesIs a subsidiary of MIB Group, Inc., which is owned by a consortium of insurance companiesSupplies one free credit report each year upon requestSmall credit reporting agencies that offer employment screeningIn many cases, you can request a report from these companies, but they might not have information about you in their files. They provide specialized information to potential employers and may be owned by one of the major credit bureaus.
Collects information related to your employment and backgroundShares files with potential employers after you have consented to a background checkIs a subsidiary of ADP, LLC (ADP)Provides a report completed within the last two years upon requestAsurint
Monitors workforce participation and data, offers background checks, and helps with searchesShares information with employers and compiles data about workforce trends to help with decision-makingSupplies a free screening report upon requestBlend Insights
Collects information about your employment and income (with permission) and verifies assets in your bank accountsProvides information to lenders looking to verify your employment and income when making approval decisionsSupplies a free screening report upon request if Blend Insights was used as part of a decision related to your creditCCC Verify
Compiles employment and wage information on your current and past jobsSends information to property managers and those who provide public assistance to verify your income and employmentIs part of ExperianFurnishes a free screening report upon request if a current or past employer is a clientSmall credit reporting agencies that offer supplemental reportsAdvanced Resolution Services, Inc.
Focuses on information about credit card applications that have been approved or declinedProvides data that card issuers can use to determine whether someone is a good risk for approvalSupplies a free report every year upon requestInnovis
Verifies your identity and collects data related to different names you’ve used and your activity under those namesDesigns its data to help service providers and others with fraud prevention and detectionIs owned by CBC Companies, Inc.Provides a free report every year upon requestLexisNexis Risk Solutions
Collects and compiles public records information, such as data on real estate transactions and property ownership, professional licenses, bankruptcy records, liens, and judgmentsSells its data to financial services providers and others to aid in decision-makingProvides a free report every year upon requestThe bottom lineThese alternative credit bureaus must provide you with a free report if an entity has used them to make a decision about your application. If an employer chooses not to hire you after running a background check or an insurer saddles you with a higher premium, there’s a good chance the information came from a secondary credit reporting agency. A potential landlord may use such records to decide whether to rent you an apartment or require a higher security deposit.
If you receive a rejection letter from a finance company or a potential employer, read it carefully. The document typically specifies where the information came from that resulted in the decision and provides contact information for the credit reporting agency that supplied it. If the data in the report is incorrect, follow up with the credit reporting bureau and ask that the record be corrected.
References[PDF] List of Consumer Reporting Companies | consumerfinance.gov