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.