A credit bureau is an organization that tracks the credit histories and related information of individuals. Whenever a person applies for credit, housing, employment, or anything else that their credit history could have an impact on, their potential creditor, landlord, or employer can check the information on file with the credit bureau. If the credit bureau shows less-than-satisfactory information in its report on the person, it may affect the person's chances of receiving the credit, lease, or job. A poor credit report can also result in higher interest rates on a loan or credit card.

There are three major credit reporting agencies: Equifax, Experian, and TransUnion. Although the three companies share information, each credit bureau maintains its own report and credit score on each individual. When someone applies for a line of credit, housing, or employment, the creditor or employer typically looks at the report and score from each credit bureau. For this reason, if an individual is monitoring his or her credit report for fraud or false information, it is a good idea to request a copy of the report from each credit bureau.

A credit bureau gets the information for their reports from the individuals' creditors. For example, if someone has a line of credit with their bank, that bank will report information regularly to the credit bureau -- good or bad. If the individual is always on time with payments, that fact will show on the credit report; however, if the individual has been more than 30 days late on one or more payments, the credit bureau is sure to know about that, as well.

A variety of information gets reported to each credit bureau. The credit bureau will have all of an individual's personal information on file: name, date of birth, social security number, current and previous addresses, and employment history. All of this information is collected by tracking people via creditor reports and social security number.

As already mentioned, the credit bureau also includes the individual's credit history on the report. Account information is listed, including the business handling the account, the date the account was opened, the credit line limit, the current balance, and the payment history. Even if an individual closes an account or the account becomes inactive, the report will still show this information for seven to eleven years. The accounts that each credit bureau includes on a credit report can be anything that is credit related, such as checking and savings accounts, credit cards, loans, and leases.

Each credit bureau also reports any inquiries made into a person's credit report. The report will show the type of inquiry and who made it. If too many inquiries are made within a certain period of time, the person's credit rating can be negatively affected.

A credit bureau also includes public records on an individual's credit report, if they are deemed related to a person's credit worthiness. For example, if a person has declared bankruptcy, he or she will not be considered reliable, and companies may be hesitant to give him or her a line of credit; therefore, bankruptcies are included on credit reports. Even unpaid child support is considered to pertain to an individual's dependability, and will appear on their credit report. This sort of information typically remains on a credit report for seven years.

Although the role of the credit bureau may seem potentially hurtful, particularly to those with poor credit histories, the credit reporting agencies also protect individuals. Any time a credit bureau adds a potentially negative item to a person's credit report, they send the person a letter to notify them, giving the individual the opportunity to verify the accuracy of the information and contest it if necessary. In some states, each credit bureau is required to give a person one free copy of their credit report each year, upon request, allowing people greater control over their credit reports and a better chance of catching identity fraud. Each credit bureau can also place a fraud alert on a person's credit report upon request, aiding victims of identity theft in preventing any further fraudulent activity.