The History Of Credit Bureaus

Credit reporting agencies are extremely important in our economy

. People are very reliant upon borrowing money for houses, school, businesses, and many other things. Without these credit reporting agencies, our economy would not function as it does now.

Credit reporting agencies or credit bureaus monitor an individual's financial dealings. They take this information and generate a credit score. This credit score basically tells a lender what this individuals risk is; whether or not they can be trusted to pay back their loan.

The establishment of credit bureaus makes it possible for many more people to borrow money. Before they came about people had to rely on their own good judgment of an individual. When society became larger and loans became more popular, the earliest forms of credit bureaus were established.

These first credit bureaus were much simpler than what we have now. All they did was create a list of individuals who were seen as high risk. This way the lender could at least know who might not pay them back. Unfortunately, credit restoration back then was not very easy. As our country grew the credit bureaus became more advanced.

They started tracking a person's job records, information from landlords, city records, and any other public record they could find. This allowed them to better assess the individual and their accountability to their obligations. Eventually this type of credit bureau grew into what we have today.

Our credit bureaus have multiple ways to access our financial records. They have the right to see all of our payments made to loans, credit cards, and other bills. With the invention of computers, almost all of our financial decisions are accessible on computers. This makes things more accurate allowing large lenders to be able to evaluate someone they know nothing about.

Credit restoration can be a daunting task because it takes quite a while to see the results. You may want to get a copy of your credit report so you can see where the problems are. Credit restoration is necessary for those with low credit scores who want to qualify for a major loan. The earlier you begin your credit restoration, the sooner you can qualify for these types of loans.

Without these credit reporting agencies, lenders would find it almost impossible to asses an individual's credit worthiness. With such a large population and with so many people wanting to borrow money, it is necessary to have these accurate judgments. It makes it possible for so many people to have the lives they dream of.

by: Ace Winget.

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