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CRAs collect various information to build your credit report, like:
– Personal information: Name, address, date of birth, and Social Security number. – Credit accounts: Details of your credit cards, loans, mortgages, credit limits, and outstanding balances.
CRAs play a significant role in the financial ecosystem by: – Helping lenders assess risk: Lenders use your credit report to evaluate your creditworthiness and determine your eligibility for loans and other financial products. A good credit score with a positive report leads to better loan terms and interest rates. – Empowering you to manage your credit: By reviewing your reports regularly, you can identify and correct any errors to ensure your credit score accurately reflects your financial responsibility. – Combating fraud and identity theft: CRAs help identify potential fraudulent activity by monitoring inquiries made on your credit report, protecting your financial identity.