A(n) _____ is a type of reporting agency that collects and sells credit information about individual borrowers.
A) credit bureau
B) consumer bureau
C) insurance company
D) bank
E) credit scoring house

Question

Quizplus · Accepted Answer

Credit bureaus are reporting agencies that collect and sell credit information about individual borrowers to lenders and other businesses. This information includes credit histories, payment behavior, outstanding debt, and public records such as bankruptcies and foreclosures. This information helps lenders and businesses to make informed decisions about extending credit to consumers. Choice B, consumer bureau, is not a correct term and there is no widely recognized entity with this name. Choice C, insurance company, is not correct as their main business is selling insurance policies and they may use credit data to price insurance policies, but not sell credit information. Choice D, banks, may use credit data to evaluate loan applications, but they are not reporting agencies that collect and sell credit information. Choice E, credit scoring house, is not a common term and is not the standard nomenclature for credit reporting agencies.

A(n) _____ Is a Type of Reporting Agency That Collects