Credit Bureau

An organization that gathers and analyzes consumer credit data and sells it to lenders for a charge so they can decide whether to extend credit or make loans is known as a credit bureau. It is also known as a credit reporting agency in the United States.

Credit bureaus collaborate with a variety of lenders and credit issuers to assist in loan decision-making. Their main objective is to make sure that lenders get the data they require to make loan choices. Banks, mortgage lenders, credit card businesses, and other personal financial lending firms are typical clients for credit bureaus.

Credit bureaus just gather and synthesize information about a person’s credit score and provide it to lending organizations; they are not in charge of selecting whether or not to grant credit to an individual. Customers of credit agencies can also be consumers, and both groups get the same service—information about their credit history.