A Credit Bureau is an organization that compiles information relating to the identity, public record, legal history, credit transaction and credit history of Individuals and Commercial Entities.
A Credit Bureau is an essential element of the country's financial infrastructure as it facilitates access to finance. Credit Bureaus assist in a stable financial sector, by providing better credit availability and improving credit risk management, in addition to providing sound information on the health of the financial sector. It also decreases information asymmetry between borrowers and lenders (the fundamental issue where the borrower knows the likelihood of repaying his or her debts much better than the lender does).
The Credit Bureau provides this information to contracted, eligible subscribers, in the form of Credit Information Reports pertaining to Individual and/or Commercial borrowers.
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