Why do issuers choose which bureau they pull based off where you live?

[SRT4kid93]

Most, if not all the major issuers change which bureau they pull based off which state you live in, why is this?

wouldn't it be more simple and cheaper to always pull the same bureau?

plus the fact I just don't see why your state of residence matters at all. 

[FlaDude]

I'm not sure why they do it by state, but the CBs are businesses just like any other. I'm sure they have sales forces who try to woo issuers into buying credit reports from them instead of the other CBs. 

[JoeRockhead]

There's lots of reasons:

• Bundled Analytics and tools.
• State regulations on privacy and data reporting.
• Lending type, credit cards, auto loans, even a consumer's borrowing history.
• Partnerships, Contractual agreements, and cost which could include volume thresholds.
• Not all lenders report to all three bureaus consistently so information available from one bureau can be different than another:  Que Capital One and their infamous triple pull. 

Historically, starting out,  each bureau had more distinct regional focus.  Currently, one bureau might be viewed to still provide stronger data in certain regions, and on different credit produsts than the other. In essence, lenders are going to utilize information pulled from the bureau(s) they believe is going to give them the most accurate picture for risk assessment of your profile. 

[SRT4kid93]

Cue @JoeRockhead

with a perfectly explained, easy to understand and well written explanation.

thanks!

[Yasselife]

Great question; it’s something a lot of people wonder when trying to strategize applications. The reason issuers vary bureau pulls by state is mainly due to data-sharing agreements and market coverage. Some bureaus have stronger presence or more comprehensive data in certain regions; so lenders use the bureau that gives them the best accuracy or pricing for that state.

It’s also about cost and relationships; not just convenience. For example; one issuer might have a bulk contract with Equifax in the Southeast; but rely on Experian for the West Coast. It’s frustrating for us trying to predict outcomes; but it actually helps them manage risk more effectively behind the scenes.

Totally get where you’re coming from though; it’d be nice if they just picked one and stuck with it. But knowing which bureau gets pulled in your area can give you an edge when planning apps; so it’s definitely smart to be asking this.