Credit Bureau

A credit bureau is an organization that collects, stores, and analyzes the credit information of individuals and businesses. It provides credit reports to lenders, banks, and other institutions to help them assess the creditworthiness of potential borrowers. Credit bureaus maintain detailed records of a person’s or company’s borrowing history, including payment behaviors, loan amounts, credit card balances, and defaults. These reports are used to generate credit scores, which influence lending decisions.

Example

Major credit bureaus like Experian, Equifax, and TransUnion provide credit reports to banks when evaluating a potential borrower’s credit application.