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What Is A Credit Bureau
Blog Post Date: Jul 02 2009
What is a Credit Bureau? A Credit Bureau is an organization that collects financial information about a person and makes them available to people who are considering lending that person any amount of money or providing that person with a credit card.
This is and essential process of the credit card system of payment because it is through such organizations that a credit card company or any bank for that matter can obtain information about a person’s financial worth and whether he or she be trusted with a loan or with a credit card.
How the Credit Bureau goes about its work is that is collects information about the persons {{{credit history}}} and also any previous criminal or negative financial statements and thus determines just how much exactly a person can be trusted with. That is, they calculate and come up with a figure for the credit limit for each person based solely on their financial history and also their present vocational status and all incomes and expenditures.
Thus they provide {{{money}}} lenders and other organizations with the person’s credit worthiness, which is the ability of a person to meet their payments on time and in the full amount. This in turn affects the rate of interest that the banks and {{{money lenders}}} give to the customers.
A credit bureau is usually not a government run public organization, but is private firm with its own shareholders and board of directors. They are profit based companies which charge all the money lending organizations for information about a person’s credit worthiness. In fact, there are a number of credit bureau type organizations in the country and each one has its own style or modus operandi of collecting the relevant {{{credit information}}} about a person.
Thus each monetary organization may have more than one credit bureau as its source of information, since in today’s world, information is power, and the money that they spend to obtain information about their potential and prospective clients may end up saving them a large chunk of {{{cash}}}.
There are a number of world famous credit bureaus including the prestigious Fair Isaac Corporation which has created the {{{FICO score}}}, which is a global benchmark that almost every leading financial organization uses to denote or express the credit worthiness of their clients.
In fact, FIC and Trans Union of Canada have taken up a joint program to design one of the world’s most powerful credit card fraud detections systems called RAVEN in order to help the credit card companies in Canada prevent people from committing credit card fraud and also bringing the offenders to justice. Another major credit bureau project, CIBIL, is a joint operation by the three major credit bureaus in Canada, NCB, Experian and Equifax Canada.
These three giants of the credit bureau world make up most of the worlds financial information industry. The {{{credit reporting agencies}}}, {{{Equifax Canada}}} & {{{TransUnion Canada}}} are all regulated at the provincial level, but what is usually termed Consumer Protection. Each province has laws and regulations for credit bureaus, with the exception of New Brunswick.
This is and essential process of the credit card system of payment because it is through such organizations that a credit card company or any bank for that matter can obtain information about a person’s financial worth and whether he or she be trusted with a loan or with a credit card.
How the Credit Bureau goes about its work is that is collects information about the persons {{{credit history}}} and also any previous criminal or negative financial statements and thus determines just how much exactly a person can be trusted with. That is, they calculate and come up with a figure for the credit limit for each person based solely on their financial history and also their present vocational status and all incomes and expenditures.
Thus they provide {{{money}}} lenders and other organizations with the person’s credit worthiness, which is the ability of a person to meet their payments on time and in the full amount. This in turn affects the rate of interest that the banks and {{{money lenders}}} give to the customers.
A credit bureau is usually not a government run public organization, but is private firm with its own shareholders and board of directors. They are profit based companies which charge all the money lending organizations for information about a person’s credit worthiness. In fact, there are a number of credit bureau type organizations in the country and each one has its own style or modus operandi of collecting the relevant {{{credit information}}} about a person.
Thus each monetary organization may have more than one credit bureau as its source of information, since in today’s world, information is power, and the money that they spend to obtain information about their potential and prospective clients may end up saving them a large chunk of {{{cash}}}.
There are a number of world famous credit bureaus including the prestigious Fair Isaac Corporation which has created the {{{FICO score}}}, which is a global benchmark that almost every leading financial organization uses to denote or express the credit worthiness of their clients.
In fact, FIC and Trans Union of Canada have taken up a joint program to design one of the world’s most powerful credit card fraud detections systems called RAVEN in order to help the credit card companies in Canada prevent people from committing credit card fraud and also bringing the offenders to justice. Another major credit bureau project, CIBIL, is a joint operation by the three major credit bureaus in Canada, NCB, Experian and Equifax Canada.
These three giants of the credit bureau world make up most of the worlds financial information industry. The {{{credit reporting agencies}}}, {{{Equifax Canada}}} & {{{TransUnion Canada}}} are all regulated at the provincial level, but what is usually termed Consumer Protection. Each province has laws and regulations for credit bureaus, with the exception of New Brunswick.
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