Credit Bureau (National Credit Bureau)

A credit bureau is a private company that collects and maintains financial information about individuals and businesses, focusing on their credit histories. This data helps lenders assess the creditworthiness of potential borrowers. The national credit bureau consolidates information from various sources, including banks and credit card companies, to create credit reports. These reports include details such as payment history, outstanding debts, and credit inquiries. Borrowers are assigned credit scores based on their reports, which influence their ability to secure loans, credit cards, and other financial services, often at better terms if they have a good credit history.