Credit Bureau >> Back to glossary
The Credit Bureau also known as the Consumer Reporting Agency for the USA is the data center that holds all the information about how good your credit is. It has the ability to gather information as to who you owe money to and what your payment history is like. This is an institution that many creditors rely on to gather valid information as to both your paying, and in some cases spending habits. Most financial institutions are registered with the Credit Bureau, and forward monthly payment history information on clients that have a debt with them.
Having a good credit rating show at the Credit Bureau can hold a great importance on your financial status. Not only can it be the deciding factor on whether you will qualify for a loan, it can also be a mitigating factor in how high of an interest rate you will be subjected to. The data collected about your finances could show that you do pay your bills, but are consistently late. This may lead a lender to believe that you are worth taking a risk on in respect to loaning money to but that you are tardy with your payments, therefore this increases the risk factor a little so you pay a little more interest.
The Credit Bureau information most often will indicate how often you are applying for credit and to what institutions. This can serve as a red flag to would be lenders. If it looks like you have been turned down by other lenders then the current lender perusing the credit bureau data may rely on this knowledge, and also decline your application for financing.
The information collected at the Credit Bureau doesn't just come from lenders but it can also be info that has been collected from utility companies. All of the information collected paints a total picture of your financial status. It can affect you in a lot of different ways when it comes to things in life that have something to do with money. For example, it can even affect the rates you are offered on insurance policies or whether you will need to put a security payment on a rental unit or your utilities.
The Credit Bureau has designed a rather complex scoring system that rates your credit based on the information it has on file about you. It is this rating system that many creditors rely on the most to make their financial decisions concerning you.
When you contact us here at DebtCafe USA for information on what is the best debt solution for you, our expert debt negotiators will also focus on ways to rebuild your current Credit Bureau report and how to protect it in the future. Our team of professionals for debt resolution believe your total financial status is important and this includes your credit rating.
