Based upon your past payment history, current credit use and inquiry history, credit providers assess your credit risk before deciding to approve your credit application. Credit providers review these details of your credit history in the form of a credit report.
The credit reporting system enables credit providers to make efficient, objective and accurate decisions to approve loans and credit. A credit applicant with a credit report reflecting prompt payment and no excessive indebtedness will find it comparatively easier to obtain new credit—and probably on more favorable terms.
TransUnion provides credit reports on a strictly limited basis. Only credit providers who are approved members are entitled to receive a consumer's credit report.
Your credit report is generated from data TransUnion receives from our clients (such as banks and finance companies) and public sources of information. Our clients provide us with updated credit information on a regular basis and we take seriously our responsibility to maintain this information in a consolidated credit database. This enables you, as a consumer, to show your credit provider that you are a person with good financial health.
When making credit decisions, every client has their own credit decision standards they use when deciding whether to approve a credit application and the amount of credit to grant. The credit report is only one piece of information used by credit providers in their credit decision.
TransUnion is not involved in the credit decision process. Our role is to provide credit information to our clients to assist in making strategically sound decisions.
Credit reporting contributes to the financial stability and security of consumers and businesses. As a consumer, you benefit from efficient, objective decisions by credit providers and from greater financial opportunities. Credit reporting helps businesses make more informed decisions about granting credit, which reduces their risk and decreases the chances of fraud. This helps keep credit costs low for consumers. A secure, stable credit economy also creates more jobs, facilitates a stable lending environment and helps drive economic growth.