Most people know how important their credit score is to their life goals, but who determines your score in the first place?
There are three credit bureaus, Equifax, Experian, and TransUnion, who create your credit report, which is used to determine your credit score. Unfortunately, they don’t all use the same process, so one might value a certain metric more than the other two.
Everyone has to deal with the credit bureaus as some point. Even if you aren’t interested in negotiating with them directly and correcting errors or repairing your credit, their determination of our credit scores gives them power. In order to take control of your own finances, you’ll need to understand the role that the credit bureaus play in your life.