Many factors determine credit scores. Here’s what can bite into yours.
What is a credit repository?
A credit repository is an older term for what is now known as a credit bureau. A credit repository or credit bureau is an institution that gathers financial information about the accounts, payment history and payment habits of individuals who have applied for credit or certain types of loans.
A credit card company or bank will use a credit bureau to check on a person’s credit history and payment history when he applies for a new credit card, line of credit, or other type of loan.
If you apply for a credit card or mortgage, the lender will check with a credit bureau to determine whether you’re a good candidate for the loan. Your credit history, your debt-to-income ratio and other factors will be taken into account based on the information provided by the credit repository. Credit bureaus are also used by individuals to keep track of their own credit score and to see what financial information of theirs is available to be seen by credit card companies, banks and others.
Credit repository example
The most well-known credit repositories are Equifax, TransUnion and Experian. These are the largest and most used credit bureaus in the United States. These institutions keep track of an individual’s credit history, payment history, any open accounts he may have, and his overall credit score.