Beyond the Big Three: Exploring Secondary Credit Bureaus

When most people think of credit reporting, they typically focus on the “Big Three” credit bureaus: Equifax, Experian, and TransUnion. However, the world of credit reporting extends far beyond these major players. Secondary credit bureaus play a crucial role in providing specialized information to lenders, employers, and other entities. In this post, we’ll dive into the world of secondary credit bureaus and explore their significance in the financial landscape.

What are Secondary Credit Bureaus?

Secondary credit bureaus, also known as specialty credit reporting agencies, collect and maintain specific types of consumer information that may not be included in traditional credit reports. These bureaus focus on niche areas of the financial sector, providing valuable insights that complement the data offered by the major credit reporting agencies.

The Most Popular Secondary Credit Bureaus

While there are numerous secondary credit bureaus, some have gained more prominence due to their specialized focus and the value of the information they provide. Here are a few of the most well-known:

1. ChexSystems: Focuses on banking history and consumer behavior related to checking and savings accounts.

2. LexisNexis Risk Solutions: Provides comprehensive background checks and public records information.

3. Innovis: Offers alternative credit data and identity verification services.

4. The Work Number (Equifax): Specializes in employment and income verification.

5. CoreLogic Teletrack: Concentrates on subprime lending data, particularly for payday loans and rent-to-own transactions.

What Information Do They Hold?

Secondary credit bureaus collect and maintain a wide range of specialized data:

– ChexSystems tracks banking-related information such as overdraft history, account closures, and suspected fraud.
– LexisNexis compiles public records, including criminal history, property ownership, and professional licenses.
– Innovis provides alternative credit data, helping lenders assess creditworthiness for consumers with limited traditional credit history.
– The Work Number maintains detailed employment and income records.
– CoreLogic Teletrack focuses on non-traditional lending data, particularly useful for assessing risk in the subprime market.

Why Secondary Credit Bureaus Matter

These specialized agencies play a vital role in the financial ecosystem by:

1. Providing a more comprehensive view of a consumer’s financial behavior
2. Helping lenders make informed decisions for non-traditional credit products
3. Assisting in fraud prevention and identity verification
4. Offering valuable insights for employment screening and tenant selection

Understanding the role of secondary credit bureaus can help consumers better manage their overall financial profile and make informed decisions about their credit and financial relationships.

Now, to answer your specific questions:

1. How many secondary bureaus are there?
There isn’t a definitive count of secondary credit bureaus, as the number can vary depending on how they’re classified. However, estimates suggest there are dozens of specialized credit reporting agencies in the United States, with some sources citing anywhere from 30 to over 50 secondary bureaus.

2. What are the names of the most popular?
The most popular secondary credit bureaus include:
– ChexSystems
– LexisNexis Risk Solutions
– Innovis
– The Work Number (Equifax)
– CoreLogic Teletrack
– Clarity Services (Experian)
– SageStream
– Factual Data

3. What info do they hold?
Secondary credit bureaus hold a variety of specialized information, including:
– Banking history and account management
– Public records and background check data
– Alternative credit data
– Employment and income verification
– Subprime lending information
– Rental history
– Utility payment records
– Check writing history
– Insurance claims data

Each bureau typically focuses on a specific niche or type of information, providing detailed insights into particular aspects of a consumer’s financial behavior or history.