Credit Reporting Agencies

The credit reporting agencies, (known as credit reference agencies in the UK and credit reporting bureaus in the US), build credit files on everyone, based on their financial commitments. They do not pass financial judgement on individuals, nor do they generate 'blacklists' of people whose credit history is poor. They only record the facts as supplied to them by businesses and organizations involved in the credit industry.

The information is stored in peoples credit files, and analysed to assess whether they represent a good credit risk to companies who are considering loan applications. It is up to the individual loan companies to decide whether or not to agree an application for credit, and they use credit reports and credit ratings to help them decide. 

Sometimes, the information recorded in a credit file is wrong. Credit files are compiled from information supplied to the agencies by third parties, and if that information is incomplete, or not up-to-date - such as when human error creeps in -  then some incorrect information can be on record, that could spoil your chance of a good credit rating.

When incorrect information exists on an individual's credit file, there is a procedure to remove it, and to clean up the credit file. Procedures also exist to deal with any dispute between a borrower and a lender, insofar as it is relevant to the credit file.

The organizations that are permitted access to credit bureaus data, are those approved businesses that are considering advancing you a loan of any type, or a potential employer or landlord checking your creditworthiness. And, of course, you can access your own credit file yourself.

More Credit Reporting Agencies Information

Credit Reporting Agencies and What information They Store
What are the three credit bureaus?