Credit Report Agencies

Credit reporting agencies or credit bureaus are responsible for compiling your borrowing reputation. They collect credit information provided by lenders and scour public records for finance-related information. The compilation of all these data is what makes up your credit report. Credit bureaus also keep tabs on all who request access on your credit report and record them under the inquiries section.

Credit bureaus are not the ones that decide on the approval of your loan or credit card application. They also don't say whether your a good or bad borrower so don't spew your hate on them when your loan applications are rejected or you get a much higher interest rate. They merely provide your borrowing history through the credit report. It is ultimately your actions as a borrower that will determine the state of your credit rating. Credit bureaus serve both borrowers and lenders by facilitating a more efficient process of credit transactions.

While there are a lot of credit reporting agencies in the United States, the three biggest sources of credit reports for most credit inquiries are Experian, Equifax, and TransUnion. Credit bureaus are under the supervision of the Federal Trade Commission while the rules and guidelines for the use of credit reports are provided by the Fair Credit Reporting Act.