Chapter 4.4, Problem 2R

To determine

To Identify: The three credit bureaus that provides free credit reports.

Explanation of Solution

Below are the three creditsreporting agencies that provide free credit reports:

• Equifax:

They offer credit fraud protection and identify theft protection to consumers, as well as selling credit reports to businesses. In this, consumers can purchase credit monitoring services that include their Equifax credit scores.

• Experian:

Experian collects data from financial institutions that show how a customer uses financial products and compiles it into a credit history for each individual person. This information is synthesized into a credit score.

• Trans Union:

Trans Union tracks the credit history of the borrowers to produce a credit history for every individual and every financial institution and to determine whether to extend credit such as a mortgage or a credit card to customer.

  

Economics Concept Introduction

Introduction:

Credit bureaus refer to a business that collects and distributes information about individuals and businesses to lenders. It is privately owned, profit making establishment that collects and compile data regarding solvency, and reputation of a particular individual in order to furnish information to subscribers.

Credit bureaus also known as credit reporting agenciesor consumer reporting agencies.

Credit bureaus provide reports that help to establish trustworthiness.