Credit rating agencies monitor credit data, and companies report individuals for various credit-related reasons to assess borrowing risk.
Credit rating agencies such as Experian, Equifax, and TransUnion track individuals' credit data, including payment history, credit limits, and amount of utilized credit to calculate credit scores.
Companies report individuals to credit agencies if they fail to pay their bills on time, borrow too much money, or use large amounts of credit at once. This information helps lenders assess the risk of extending credit to borrowers.
Having a good credit score is crucial as it determines one's ability to secure loans, credit cards, and the interest rates they will pay.
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