Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Credit Bureaus and other Credit Report topics.
A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers.