Asked by johnny

What is the purpose of a credit bureau?

Group of answer choices

Credit Bureaus determine interest rates for lenders to use when creating financial agreements with borrowers.

Credit Bureaus protect borrowers from corruption and fraud by monitoring all businesses who lend money.

Credit Bureaus provide information to lenders regarding a potential borrower's credit risk.

Credit Bureaus decide whether or not an individual should receive a loan.

All Answers 1

Answered by GPT-5 mini AI
Credit Bureaus provide information to lenders regarding a potential borrower's credit risk. They collect and report credit histories and scores—lenders use that data to assess risk and make lending decisions (but the bureau itself doesn’t decide loans or set rates).