Do Credit Bureaus Sell Your Information?

Credit bureaus, primarily Experian, Equifax, and TransUnion, are specialized companies that collect and maintain extensive financial data about consumers, compiling detailed credit histories. Their primary function involves gathering information from various sources to create comprehensive credit reports. These reports are then used to assess an individual’s creditworthiness. The data they manage is central to decisions made by lenders and other businesses, forming the basis for credit scores, which are widely used indicators in commerce.

Data Sharing Practices of Credit Bureaus

Credit bureaus operate under specific regulations regarding how they share consumer information, primarily governed by the Fair Credit Reporting Act (FCRA). They do not sell raw lists of consumer data for unrestricted general marketing purposes. Instead, information is shared under “permissible purposes,” which are legally defined circumstances.

One common mechanism for data sharing is through “firm offers of credit or insurance,” often called prescreening. A lender or insurer establishes criteria, and the credit bureau provides a list of consumers who meet those parameters. This is a service where the bureau acts as an intermediary, providing a targeted list for a specific, pre-approved offer. The FCRA permits this practice, ensuring offers are firm if the consumer meets the stated criteria.

Types of Information Shared

Credit bureaus compile and share several categories of consumer information. This includes identifying details such as an individual’s name, current and previous addresses, date of birth, and Social Security number. These personal identifiers are used to correctly link information to the consumer.

Beyond identification, detailed credit account information is shared. This encompasses the types of accounts held, such as credit cards, mortgages, or auto loans, along with account opening dates, credit limits, loan balances, and a comprehensive payment history. The payment history indicates whether payments were made on time or if any delinquencies occurred.

Public record information, like bankruptcies, can also be included in a credit report, though some items such as tax liens and civil judgments are now less commonly reported. Additionally, credit inquiries, which are records of who has accessed a credit report, are noted. The credit scores derived from this data are also shared, providing a quick summary of credit risk.

Who Receives Shared Information

Various entities can receive shared consumer information from credit bureaus, provided they have a permissible purpose under federal law. Lenders are frequent recipients, utilizing the data to evaluate applications for new credit products like mortgages, car loans, or credit cards, as well as for prescreened offers. Insurance companies also access this information for underwriting policies and to extend prescreened offers.

Employers may obtain portions of a credit report for background checks related to employment, but only with the consumer’s explicit written consent. Landlords use credit data for tenant screening purposes to assess an applicant’s financial reliability. Debt collectors can access reports when attempting to recover delinquent accounts, and government agencies may do so for specific legal or regulatory reasons, such as determining eligibility for certain licenses or benefits.

Limiting Data Sharing

Consumers have the ability to manage and limit the sharing of their credit information, particularly concerning prescreened offers of credit and insurance. The primary method for opting out is through a centralized platform, OptOutPrescreen.com. This website is a joint initiative of the major credit bureaus, including Equifax, Experian, Innovis, and TransUnion.

To opt out online for a period of five years, consumers must visit OptOutPrescreen.com and provide personal details such as their name, address, Social Security number, and date of birth. For a permanent opt-out, the process begins online, but requires printing and mailing a signed Permanent Opt-Out Election form. Opting out helps reduce the volume of unsolicited mail and phone calls related to these offers.