What the Better Business Bureau and Credit Bureaus Do

The Better Business Bureau and each of the credit bureaus have a responsibility to keep reported information that reflects the reputations of individuals and companies.

Part of what the Better Business Bureau (BBB) does is similar to what credit bureaus do. The BBB gathers information about companies related to their background, customer experiences, licensing and any government actions. The BBB also has a rating system that they use to evaluate companies based on a series of criteria. Some of the criteria that the BBB uses include the type of business, age of company, the number of complaints (resolved or unresolved), and background information.

Credit bureaus gather information that lenders provide about consumers. In a credit report, information such as public records, payment history, and delinquencies are found. Credit bureaus then use criteria such as types of credit, length of credit history, and the number of late payments or delinquencies a borrower has in order to evaluate them with a credit score.

Credit bureaus are like the "Better Borrowers Bureau" for lenders to determine whether or not they can trust an individual enough to borrow money and pay it back on time. In the same way that a consumer would hesitate to do business with a company that has a poor BBB rating, creditors are hesitant to lend to borrowers with poor ratings.

Both the Better Business and Credit Bureau are focused on providing information that will help people make decisions about doing business with companies or individuals.


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