What is the Role of a Credit Bureau?
The credit bureau keeps record of an individual’s credit history. A credit bureau prepares an individual’s credit report that contains every payment detail for that individual. A credit report also contains an individual’s personal information such as the name, residential address, official address, etc.
There are 3 credit bureaus – Equifax, TransUnion, and Experian that prepare credit reports. The credit bureaus receive information from creditors/lenders, debt collection agencies, courts, etc. After receiving this information, the credit bureau compiles it into a credit report, which then reflects the creditworthiness of an individual. These reports are checked by the lenders before they extend credit.