All the information that appears on your credit profile is compiled by credit reporting agencies, or service bureaus. These agencies keep records of consumer debt and how regularly these debts are repaid. They gather information from creditors, usually on a monthly basis, showing what each account holder owes or has paid. The data shows if payments are up-to-date, overdue, or if any action has been taken to collect overdue bills. The credit bureau then adds this data to existing information in your file, creating a credit report. These agencies make their money by selling copies of your credit report to creditors. The three major credit reporting agencies you should be aware of are Equifax (EK-wuh-facks), Experian (ex-PEER-ee-an), and Trans Union. If you're late with a payment to a lender, this fact is quickly reported to at least one of these major credit bureaus and is added to your credit history. Though these service bureaus aren't affiliated with the government in any way, you have some rights and protection under the Fair Credit Reporting Act, which requires that most negative credit items be deleted from your profile after seven years. Exceptions include bankruptcy, which can stay on your record for up to 10 years.

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