What is a Credit Bureau?

An organization that tracks the credit histories and other related information of individuals is known as a credit bureau. Whenever some applies for seeking some form of credit like housing, employment etc then the lender can check the borrower’s credit record on file with the credit bureau.

If the information that the bureau has to provide is less than satisfactory, it severely affects the chances of the person from getting credit and if he possibly can then it will be at a comparatively higher rate. The three major credit reporting agencies are Equifax, Experian and Trans Union. Although there is a sharing of information between the three agencies however each of the three maintain separate files on all individuals.

Whenever someone goes up to seek credit from a lender then he takes a look at the credit report of all the three bureaus. The individual should monitor his credit score and take a copy of the report from all the three bureaus so that he can get any mistakes also rectified.

The information regarding the credit worthiness of the person is taken by the bureau from the creditors of the person. For instance if an individual has a line of credit dealing with the bank then the bank directly reports the information to the bureau. So if the individual is not prompt in repayments etc then the bureau will know everything.

Also all of the personal information, name, age, date of birth, address, social security number, and employment history etc. Also if any enquiries have been made into the credit records of any individual then such enquiries are recorded. Also who made them and for what purpose is also recorded.

Also if any person has filed for bankruptcy then that is also recorded by the credit bureau because such a person is not considered reliable by the companies and they do not wish to give him credit etc. The job of the credit bureaus seems pretty hurtful for the people. However when the bureaus add any negative information to the credit records then they also send a notification to the concerned person. This way the person can verify or try to rectify the problem.