What is a credit bureau primarily responsible for?

A credit bureau's primary responsibility is to collect and maintain individual credit information. These organizations gather data from various financial institutions regarding consumers' credit histories, including borrowing and repayment behaviors, payment history on loans, credit cards, and any public records such as bankruptcies or liens. This information forms the basis of credit reports, which are essential for lenders when evaluating an individual’s creditworthiness for loan approvals, credit card issuance, and other financial services. The accurate, comprehensive collection of this data allows credit bureaus to provide reliable reports that help facilitate credit transactions and support the broader financial system in assessing risk.

Other options, such as issuing credit cards, providing loans, or managing bank accounts, represent services offered by financial institutions rather than functions of a credit bureau.