CreditBureaus

Credit bureaus are organizations that collect, store, and distribute information about individuals' and businesses' credit histories. They compile credit reports and, in many markets, credit scores that lenders and other institutions use to assess creditworthiness and risk.

Data come from banks, credit card issuers, telecom and utility companies, and, where allowed, public records such as bankruptcies and civil judgments. The bureaus assign identifiers to individuals and maintain records of account status, payment history, credit limits, and current balances. They may also track inquiries for new credit applications and, in some cases, employment or tenancy checks with consent.

Credit reports list tradelines, dates of account openings, payment patterns, and any derogatory marks. Credit scores are numerical summaries created to represent overall risk based on the reported history. Uses include underwriting of loans, determining interest rates or limits, and screening by landlords, insurers, and some employers; regulators also use the data for oversight.

Consumers generally have the right to access their own reports, to dispute inaccuracies, and to request corrections. Data privacy and consumer-protection laws regulate what can be collected, how it is used, and how errors are remedied. In many jurisdictions, credit reporting is limited to verified data from recognized furnishers and subject to enforcement by a supervisory authority.

Global credit bureaus include Experian, Equifax, and TransUnion in the United States, with numerous national or regional agencies elsewhere. Ongoing concerns include data quality, security, and the potential for adverse effects from incorrect or outdated information, prompting efforts to improve data quality and consumer rights.