How To Credit Bureaus Make Money

Each time an account is reported the financial agency reporting it pays a small fee to each bureau.

How to credit bureaus make money. Finally credit bureaus offer services that help lenders find new customers. These include identity theft protection credit monitoring services and fraud protection. Consumer credit report data. If an inquiry or credit check comes from american express american express pays the credit reporting agency for the information on the consumer.

Credit bureaus simply gather and sell data. The bureaus also make money by selling credit monitoring and education products to other companies allowing the companies to give or sell these services. Consumer services are another way credit bureaus make money. Bottom line the credit bureaus do more than create and sell credit reports.

As time goes by these services are becoming extremely popular. The credit reporting agencies make their money off inquiries from consumers. Recently they have gotten into the monitoring business and as mentioned figured out a way to make money from you and me disputing accounts on our report. It s how we make money and we have not reviewed all.

They average millions of inquiries in a 24 hour period. As someone else stated they sell lists to companies offering credit insurance financial products. Equifax experian and transunion are by far the largest credit bureaus and what they do has a huge impact on your financial life. If an individual defaults on loan payments the creditor may opt to send a report of the late payment s to the credit bureaus so that it will be reflected in the consumer s credit file.

Every time your credit is pulled the company pulling it. Banks financing companies retailers and landlords send consumer credit information to the credit bureaus for free and then the credit bureaus turn around and sell consumer information right back. The credit bureau receives a request from a lender for a consumer credit report which the bureau sells to the lender. If you are a small business with few debtors you will have to use a middleman and pay a fee to report to the credit bureaus.

The more inquiries coming in the more money they make. The credit bureaus make money by selling all the data they collect about us. For example when you apply for a loan your bank might want to get your credit score. They sell two types of data.