Credit reporting agencies working together with Lenders
A company decides to lend money to a borrower under specific conditions. Lenders can be loan companies, banks, credit card issuers, or even individuals. To manage loans, most lenders report back to credit reporting agencies on consumer payment habits. These lenders depend on their access to credit reports to determine individual consumers' loan terms and conditions. Lenders (or creditors) rely on credit reporting agencies to collect, compile and sell reports on consumers' credit histories.
What is a credit score
Credit reporting agencies can also provide lenders with a credit score, which is based on the information in your credit file. A credit score is determined by applying a mathematical equation to a borrower's credit history, which results in a score that indicates what kind of credit risk that borrower represents.