An agency which collects and sells information about the creditworthiness of individuals. A credit reporting agency does not make any decisions about whether a specific person should be extended credit or not.
Credit bureaus are "clearinghouses" for information about consumers and how they handle their financial responsibilities. They are private firms which collect from creditors information on their experiences with individual borrowers (Are bills paid on time?) as well as other personal and financial information (employer, income, savings, debts owed).
Credit bureaus establish and maintain "credit files" on consumers who apply for or use individual or joint credit. For a fee, credit bureaus will provide "credit reports" to individuals or businesses that need such information, for example, to make decisions to grant or deny credit, employment, or insurance. Consumers can obtain a free credit report if they have been denied credit due to the report and can obtain a free credit report upon request annually.
However, it does collect information that it considers relevant to a person's credit habits and history, and uses this information to assign a credit score to indicate how creditworthy a person is.
When a prospective creditor approaches a credit reporting agency to inquire about a particular person, they are sold a credit report which contains all the information relevant to the person and the credit score calculated by the agency (some creditors might have an ongoing subscription to credit bureau). The prospective creditor then uses that information to decide whether to extend the applicant the desired credit or not. Same as credit bureau. also called consumer reporting agency.
RSS
An agency which collects and sells information about the creditworthiness of individuals. A credit reporting agency does not make any decisions about whether a specific person should be extended credit or not.
Credit bureaus are "clearinghouses" for information about consumers and how they handle their financial responsibilities. They are private firms which collect from creditors information on their experiences with individual borrowers (Are bills paid on time?) as well as other personal and financial information (employer, income, savings, debts owed).
Credit bureaus establish and maintain "credit files" on consumers who apply for or use individual or joint credit. For a fee, credit bureaus will provide "credit reports" to individuals or businesses that need such information, for example, to make decisions to grant or deny credit, employment, or insurance. Consumers can obtain a free credit report if they have been denied credit due to the report and can obtain a free credit report upon request annually.
However, it does collect information that it considers relevant to a person's credit habits and history, and uses this information to assign a credit score to indicate how creditworthy a person is.
When a prospective creditor approaches a credit reporting agency to inquire about a particular person, they are sold a credit report which contains all the information relevant to the person and the credit score calculated by the agency (some creditors might have an ongoing subscription to credit bureau). The prospective creditor then uses that information to decide whether to extend the applicant the desired credit or not. Same as credit bureau. also called consumer reporting agency.