Credit Agency

AAA

DEFINITION of 'Credit Agency'

A for-profit company that collects information about individuals' and businesses' debts, and assigns a numerical value called a credit score that indicates the borrower's creditworthiness.


Creditors and lenders, such as credit card companies and banks, report their customers' borrowing activity and history to credit agencies. Individuals and businesses can obtain copies of the information reported about them by contacting the credit agency or a related third-party company, and paying a nominal fee.

INVESTOPEDIA EXPLAINS 'Credit Agency'

The information provided to credit agencies includes how much credit is available to that borrower, how much of the available credit they have used, and what their repayment activity looks like. Credit agencies help potential lenders and creditors determine whether to lend or extend credit to an individual or business, by predicting the likelihood that the borrower will repay the debt in a timely manner.



RELATED TERMS
  1. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Credit

    1. A contractual agreement in which a borrower receives something ...
  4. Credit Limit

    The amount of credit that a financial institution extends to ...
  5. FICO Score

    A type of credit score that makes up a substantial portion of ...
  6. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
RELATED FAQS
  1. How is my credit score calculated?

    The credit score, commonly referred to as a FICO score, is a proprietary tool created by the Fair Isaac Corporation. This ... Read Full Answer >>
  2. Does marrying someone with bad credit affect my credit score?

    A credit rating is an assessment of an individual's creditworthiness. This evaluation is based on an individual's history ... Read Full Answer >>
  3. How can I improve my credit score?

    If you are looking to take out a loan or apply for a credit card, then it will be very important for you to have a good credit ... Read Full Answer >>
  4. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ... Read Full Answer >>
  5. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  6. What types of liens are seen as good and which are bad for my credit?

    Creditors that allow purchases to be made through financing often require property to be pledged against a credit account; ... Read Full Answer >>
Related Articles
  1. Personal Finance

    How A Bad Roommate Can Ruin Your Credit Score

    Living with someone can cut your expenses, but in addition to not doing the dishes, your roommate may do serious damage to your credit.
  2. Options & Futures

    6 Major Credit Card Mistakes

    Avoid these pitfalls to keep your credit score healthy and your debt under control.
  3. Personal Finance

    Procrastinator's Guide To Bill Payment

    Avoid punishing late fees and keep your credit score intact with these 10 tips.
  4. Credit & Loans

    Credit Card Review: Blue Cash Everyday Amex

    Read about the Blue Cash Everyday Amex card, and learn how it saves cardholders money on groceries, gas and other household purchases throughout the year.
  5. Credit & Loans

    Credit Card Review: Chase Freedom

    Learn about the Chase Freedom card and how it earns 1% cash back on every purchase and up to 5% on purchases in quarterly categories.
  6. Credit & Loans

    Credit Card Review: Citi Double Cash

    Learn about the Citi Double Cash credit card and its simple cash back program that pays a combined 2% rate on every card purchase.
  7. Credit & Loans

    Free Credit Score: How Free Is It Really?

    Be careful of websites making bogus offers of "free" credit scores. If a site asks for credit card information, you'll most likely end up being charged.
  8. Credit & Loans

    Credit Card Review: Amex EveryDay

    Learn the benefits of the Amex EveryDay card, such as its introductory offer and rewards perks, and discover the types of consumers for whom it is best suited.
  9. Credit & Loans

    Credit Card Review: Capital One Venture Rewards

    Learn how the Capital One Venture Rewards card helps you earn unlimited rewards miles to pay for all types of travel expenses, such as airfare and hotel costs.
  10. Credit & Loans

    Credit Card Review: BankAmericard Cash Rewards

    Read about the BankAmericard Cash Rewards card, and learn how to start earning unlimited cash back with its simply rewards program.

You May Also Like

Hot Definitions
  1. Dog And Pony Show

    A colloquial term that generally refers to a presentation or seminar to market new products or services to potential buyers.
  2. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  3. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  4. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  5. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  6. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!