Credit reporting agencies (CRA’s), like Experian, Equifax and Transunion, are responsible for gathering, processing and archiving credit information on consumers. CRAs have information on more than 200 million Americans just like you.
The agencies collect information on every consumer’s use of credit and their bill-paying habits. The data comes from “information suppliers,” or any business that extends credit to customers. Information also comes from public records like court judgments and bankruptcy filings.
Moreover, as many data collecting companies do, they sell your information for huge profits. Businesses like banks, management companies, and various lenders use that information to help make decisions about granting loans or credit.
Keep in mind, CRA’s don’t make decisions on whether or not you get a loan. That decision is made by banks, credit unions, mortgage companies or card companies you apply to. The information from the CRA is simply used to set the interest rate and conditions for your loan.