Meaning of Credit Bureau
What is Credit Bureau:
Credit Bureau is a credit information entity whose purpose is to collect data on the behavior of natural persons or legal in relation to the credits obtained.
It is a private and autonomous society, not affiliated with the institutions, whether private or public. This entity offers information to financial, commercial or any other type of companies, that grant credits in different areas, such as automobile loans, mortgages, etc.
Among those organizations that grant credits can be counted: auto companies , department stores, banking institutions, credit card issuers, telecommunications companies (landline, cable services, mobile telephony and internet), and many more.
In principle, the credit bureau seeks to stimulate the financial activity of a certain company, avoiding the lack of liquidity. Therefore, it offers information on the borrower’s behavior regarding the distribution of the debt, the punctuality of payment, the commitments settled, the causes of indebtedness, etc.
They have access to a person’s credit history or company only the following sectors:
- The holders of the debt, whether individuals or legal entities.
- The grantors of the credit, with the authorization of the applicant: financial and commercial companies of different types.
It is not for the credit bureau to make recommendations or make judgments regarding the information it provides. Simply be limited to delivering the requested data.
The instances involved (applicant or grantor of credit) will be those who will evaluate the risks associated with the financial commitment acquired and who will make the final decision.
The credit bureau is subject to the laws of the companies in which it is inserted.
See also Credit.