What Is Credit ?

You are probably already familiar with the concept of "credit", a reputation for paying your bills on time which makes it possible for you to get the money or goods, provided that you pay for them later.

In fact, you probably already have your credit work for you. You used when you have a car or a student loan, credit card used to pay for a trip or a new suit, or have been selected as a tenant in his apartment or a house. A solid history of paying your bills may also have been just the objective character reference needed to help you land your job, too.

But even if you use your credit card every day, you may have questions about the credit industry and how it affects you. In today's society, credit is much harder to keep a countdown on the local supermarket. Consumer credit as active, you need to know how credit reporting works and what's in your credit report.

What is a Credit Bureau?

A credit bureau or credit reporting company is in the process of collection and storage, and sale of information on the credit history of consumers. It collects information on the payment habits of consumers by lenders such as banks, savings and loans, credit unions, finance companies and retailers. The credit bureau stores this information in a database and sell it to creditors in the form of credit reports. When you apply a new credit card or loan, the lender orders your credit report at least one credit bureau and analyzes the information to decide to give you credit. The credit bureau charges the credit provider a fee for every credit report sold.

Although the credit reporting companies to provide your credit report to lenders when you apply for credit, they do not make lending decisions real. It is up to individual lenders to evaluate your credit report and other factors they consider important and then decide if they will offer you credit.