How Do The Credit Bureaus Make Money?
Credit bureaus are in the information business and make millions of dollars by renting their information to banks and other organizations. The renting of consumer data is big business in this country. All the junk mail you receive in your mail box each day will attest to this fact. Credit bureaus make their money primarily two ways: 1) By collecting information from your creditors on a monthly basis and keeping your credit profile current, credit bureaus then charge banks, landlords, hospitals, and even employers to receive a copy of your credit report so they can make an informed decision as to whether or not to extend you credit. Remember, creditors in any form are looking for a SOLID financial risk, and credit reports help them make a well informed and calculated decision based on current and sound financial data regarding your repayment habits from the past. And, 2) Credit bureaus make the majority of their income by renting lists of consumers in their databases to large banks and
