The Fourth Bureau

The three credit bureaus: Equifax, Experian and TransUnion are responsible for monitoring and maintaining the current system of creditworthiness.  These three companies are responsible for proper maintenance and protection of all of the sensitive information relating to your credit history.

But, did you know there are other companies collecting your personal and financial information? These companies collect information that the credit bureaus do not, such as rent payment history, utility payment history and prepaid card purchases.

Collectively, these companies are referred to as “The Fourth Bureau” because the information collected by them can be used to create a type of credit profile for you.

The Fourth Bureau fills a particular niche left open by the three credit bureaus – it enables consumers to build up a type of financial history without relying on traditional credit cards or loans and allows businesses to view a different type of financial history. Data collected by these companies can be used to create a credit profile for those who would normally have no credit.

This collection of this additional information can have its downsides.  If you are late on a utility bill payment, for example, that information can be tracked and sold to various data collections.  In some cases, this can come back to haunt you in instances like an employment background screen which collects data from these companies as well as the major credit bureaus.

Federal regulation surrounding The Fourth Bureau collective is hazy at best.  Currently, there are no exact provisions as to what data can be collected or what notification should be provided to consumers.  These businesses are not required to notify you if they collect your information – because of this, it is nearly impossible to track down all of the information that is bought or sold to various businesses across the nation.

Data collection can be a difficult process for consumers even with the three major credit bureaus.  A simple mistake or inaccuracy can lead to a mound of problems later on, and it is now more important than ever to keep an eye on your credit.