How TransUnion's IPO Could Affect Your Credit Score

TransUnion, one of the three major credit bureaus, filed for an initial public offering (IPO) on Tuesday with the backing of Goldman Sachs, J.P. Morgan Securities, Deutsche Bank Securities Inc., Pierce, Fenner & Smith and Merrill Lynch among its underwriters, according to Reuters. This is TransUnion's second attempt to go public, following a bid in 2011 it withdrew after the agency was acquired by Advent International and Goldman Sachs.

With an initial fundraising target of $100 million, and previous reports that TransUnion intends to raise $800 million this year through its IPO, this move makes the agency the last of its competitors to go public. Equifax (EFX) joined the New York Stock Exchange in 1971, whereas Experian (EXPN) joined the London Stock Exchange in 2006.

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What TransUnion's IPO Means for Its Future

Going public means that a company gives up a certain amount of agency; while its valuation and investment can shoot up, so too can the amount of pressure investors can place on the company's operations and processes. TransUnion reported a revenue net loss of 10 percent, or 12.5 million, last year, down from $35.1 million the year prior, per Reuters.

With the IPO filed with U.S. regulators, speculation has already begun on the ways the company's focus will shift in the coming years, with research firm IDC anticipating TransUnion's investment in big data will increase 15 percent by 2018. TransUnion has been in the news recently for a number of consumer-based milestones.

First, the bureau announced that CreditVision, its year-and-a-half old creditworthiness predictor, helped score 26.5 million consumers who previously lacked a credit score, while also increasing the number of people categorized as super-prime. Following this, news broke that the three credit bureaus came to an agreement with New York State to resolve credit disputes themselves, rather than through lenders.

With potentially adjusted business priorities, a slew of new investors to come and a large increase in funds raised, it's not a reach to argue this move could affect consumers.

Read: How to Get the Most Out of Your Free Credit Reports