A Credit Report Agency does not make decisions regarding a consumer’s creditworthiness. Rather, the credit report agency compiles reports of what your file contains and passes that along to the potential credit grantor.

Credit decisions are, in fact, generally made based upon a number of factors that comprise of a "score" received from the credit report agency. Inquiries made to the credit report agency in connection with your applications for credit may also be a factor in your score. If, for example, you have applied for several credit cards or loans in a short period of time, this may result in a lower score designated by the credit report agency. Inquires made in connection with pre-approved credit offers or those you make yourself should not result in a reduced score from the credit report agency.

The Credit Report Agency

The practice of credit scoring is widespread and growing. Until recently, consumers have seldom gained access to their credit score from a credit report agency and have not been able to learn the factors that went into the scoring. Now the credit industry is voluntarily loosening its grip on the credit score because of legislative and marketplace pressures making it easier to communicate with a credit report agency.