Question

What is the purpose of a credit reporting bureau?

a.to process financial transactions for member banks
b. to disseminate information to businesses, but not to individuals
c. to counsel individuals with poor credit histories
d.to collect, store, and distribute credit histories

Answer 1

The purpose of a credit reporting bureau is to collect, store, and distribute credit histories. Credit reports help businesses make informed decisions about extending credit to individuals.

Step-by-step explanation:

The purpose of a credit reporting bureau is to collect, store, and distribute credit histories. Credit reporting bureaus compile information about individuals' credit history, including their borrowing and payment habits, and generate credit reports that are used by lenders and other businesses to assess a person's creditworthiness. These credit reports help businesses make informed decisions about extending credit to individuals or approving their applications for loans, credit cards, and other financial products.