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The credit bureaus send credit reports which contain information about a person or a company\u2019s bill repayment history.\u00a0<\/p>
The report also contains data about the status of their credit accounts. The report will show how often the loan applicant made payments on time, and what their current credit arrangements are.\u00a0<\/p>
It also shows how much credit they are using, and whether a debt collector is seeking repayment.<\/p>
The credit reporting agencies keep comprehensive credit information on individual consumers for a variety of uses.\u00a0<\/p>
They use this information to provide credit facilities already availed of by a borrower as well as his payment track record.\u00a0<\/p>
The credit reporting agencies provide information on an individual\u2019s borrowing and paying habits.\u00a0<\/p>
This helps lenders assess creditworthiness and the ability to pay back a loan and can also affect the interest rate and other terms of a loan.<\/p>
There are three major credit bureaus that function in the country, TransUnion, Equifax, and Experian. Banks, credit card companies, and other financial institutions send financial data of registered individuals and companies to these credit agencies on a periodic basis.\u00a0<\/p>
These agencies use this information to create a credit report which includes personal information about an individual or the company like payment history, the number of credit accounts, defaults (If Any), credit transactions, outstanding loan amount, and other such financial information.\u00a0<\/p>
Based on this report and analysis of financial data, the individual or the company is assigned a credit score. This credit score helps the lenders to determine the borrowing party\u2019s creditworthiness.<\/p>
When you apply for a loan or a credit card, the lending banks or the credit card companies contact the credit bureaus to check your credit history to determine your repaying ability.\u00a0<\/p>
If your credit history and your credit score are satisfying to your lenders, only after that they will make a decision of lending money to you.\u00a0<\/p>
The credit reports are provided to banks, consumers, credit providers, insurance companies, credit card companies, and debt collection agencies on request to these credit bureaus.<\/p>
Every credit bureau has a different way of calculating credit scores. Hence, the scores from all three bureaus will vary on an individual\u2019s credit report.\u00a0<\/p>
For mortgage lending, the middle score is considered in order to provide you with the loan.\u00a0<\/p>
When an individual applies for a mortgage, the lender will pull the credit from all three credit bureaus and will consider the middle score of the three scores.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t