Credit bureaus obtain your credit data from financial institutions such as banks, finance companies, credit card companies, mortgage lenders, etc., known as “information furnishers.” These information furnishers, or more simply referred to as “creditors”, currently, or have previously, extended credit to you such as an auto loan, credit card, mortgage or a student loan. Creditors voluntarily report your account data and payment history in an automated fashion and on a regular basis, typically monthly, but in some cases less frequently. Credit bureaus do not verify the credit information furnished to them before attaching it to your credit file. It is up to the creditor to transmit the correct data about your accounts.
Credit bureaus also receive information on collection accounts, charge-offs, and other types of bad debt accounts. Many times, the original credit grantors do not report positive data to the credit bureaus, but if the account goes into collection or is placed with a collection agency, the collection may be reported to the credit bureaus.
Credit bureaus also gather public record information that is not reported to them voluntarily such as tax liens, judgments, or bankruptcy information.