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Consumer Reporting Agency (CRA)
A business which assembles consumer credit information for a fee with the purpose of providing consumer reports to creditors is known as a consumer reporting agency. They also provide free credit reports for the consumer in certain circumstances, such as if the consumer has been refused credit because of the information in their credit report. Consumers should apply for their credit report every year because if any of the information is inaccurate, it could affect their credit scores and ratings. If the report does contain incorrect details, then the consumer can bring this to the attention of the consumer reporting agency.
The consumer reporting agency gathers up any information that they can find on the consumer. It can include the credit limit currently on offer to the consumer, information on unpaid bills and even health details. It provides as much financial information as possible in order to assess the consumer's risk factor. Creditors use these reports in order to make a decision on whether the consumer should be offered credit or not. The reports determine the likelihood on the consumer being able to make repayments on their bills based on comparative information.
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