How Credit Bureaus Make Money

 Credit Reporting and You

Information you as a consumer should know about Credit Bureaus. The Credit Bureaus make money selling your information. The three major Credit Bureaus are in business for two main reasons only and those reasons are to make money, and be profitable for their shareholders. They make their money by selling consumer information to other businesses who lend money. With this information those businesses can assess the risk level of potential borrowers. Many of those businesses are:

  • Mortgage companies
  • Banks
  • Credit Unions
  • Car dealerships
  • Credit Card companies
  • Insurance companies
  • Collection agencies
  • Land lords
  • Employers (with your permission only)

The Bureaus enjoy greater financial success if  you have low scores. As a rule, credit card companies do not spend nearly as much money buying the personal information belonging to people that have good credit.

If you suffer from a low credit score, your information is much more likely to be sold since you are a candidate to pay higher fees, higher interest rates, higher rental deposits, and in most cases, higher insurance premiums. What they do not make their money from is making sure your credit report is 100% factual and accurate, in fact they do not even verify what they are reporting. And the vast majority of credit reports contain inaccurate information, enough so that you may suffer economic consequences as a result.

You are the only person in the equation who benefits from an accurate report and high scores.  It is up to you, the credit consumer, to make sure your reports are as accurate as possible.

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