A credit bureau is a company that collects and analyses personal credit information and sells it to creditors for a fee so that they can make loan decisions.
Credit bureaus look into the credit histories and habits of potential clients. Financial institutions, banks, credit card issuers, and even utility companies provide them with credit-related and non-credit data.
What They Do With The Data Collected
However, this data is purchased to assist in assessing a customers’ credit risk and decide whether or not to give credit to them.
There are 3 main credit bureaus in Nigeria, with FirstCentral Credit Bureau being the first independent Credit Bureau in Nigeria.
You can visit www.firstcentralcreditbureau.com to check your Credit Score or Credit History. It’s important to know your Credit Score early so you don’t get caught unawares when you are in need of Credit (Loan).
Things to know about a Credit Bureau
- Individual credit information is collected and researched by a credit bureau, which is then sold to creditors at a fee to make lending decisions.
- Individuals’ credit ratings are assigned by credit agencies depending on their credit history.
- Credit scores play a crucial role in determining whether or not you will be approved for credit or loans and can ease the loan terms or make them tougher based on your Credit History or Credit Score.
- Credit bureaus do not make decisions about whether or not you will be approved for credit; instead, they collect and synthesize information about your credit risk and provide it to lenders.
- There are 3 Credit Bureaus in Nigeria, where FirstCentral Credit Bureau is the first independent Credit Bureau.