Consumer Reporting Agency


Consumer Reporting Agency

A company measures of an individual's creditworthiness and sells information regarding it. Consumer reporting agencies quantify a variety of factors in an individual's background, including a history of default, the current amount of debt, and the length of time that the individual has made purchases on credit. Banks and other financial institutions may purchase information from a consumer reporting agency to determine whether or not an individual is likely to default on a loan, mortgage, or other debt. See also: Fair Isaac Corporation, Credit bureau.