Credit Repository

A credit repository is a company that maintain credit records and financial information about consumers, including payment records. Credit repositories are commonly referred to as credit bureaus in the United States. There are three major credit bureaus in the United States: Experian, Equifax and Transunion. Credit repositories maintain consumer records of credit balances, payments and other items in one’s financial history, including social security information, previous addresses and employment history. Based on the credit information, each credit repository or credit bureau assigns a credit score, which is an indicator of credit risk. The higher the credit score, the more likely it is that a potential creditor will grant credit to the consumer. A better credit score may also allow an individual to seek a larger loan, line of credit or consumer credit card. Consumers can also benefit from lower interest rates and other promotional benefits if they have a high enough credit score.