Functions Of A Credit Report Bureau
A Credit Report Bureau, also known as a Credit Reporting Agency or Consumer Reporting Agency, is a central storage area of credit records, credit and payment history as well as some legal information on clients and company businesses involved. These records are being sold to creditors and lenders whenever a consumer or a business entity applies for a credit. The three major credit bureaus in the United States are Equifax, Experian and TransUnion. A fourth credit bureau, Dun and Bradstreet Corp., concentrates in reporting credit information exclusively. Furthermore, credit bureaus started to extend across the country after the end of World War I when soldiers began looking for funds to buy homes, automobiles and goods as well. As credit procurement began to replace cash as the primary legal tender for the acquisition of huge items, the demand for national credit bureaus became evident. At present, credit bureaus store over one billion credit records, and approximately two billion credit transactions are encoded monthly. Credit card issuers and credit grantors offer loans to consumers who are willing to fill out the application with the important information including the name, date of birth, address, and the social security number. With these, the credit bureau will look up the entire client's record on all companies he had transactions with and then, calculate credit score reports based upon particular financial criteria. If the score is above the creditor’s minimum boundary, the application is more likely approved and both the credit grantor and the borrower are given notice.