Bureaus – collect and pass
Credit agencies are private commercial companies that collect and pass on information, or sell it. Your clients are companies in the private sector; primarily credit institutions, leasing companies, mail order companies, online shops and telecommunications companies. They all conclude contracts with the customer as the end user. They are either directly a loan agreement or they have the effect of a loan with a contribution in kind. The mobile operator makes an advance payment with its contract. He immediately leaves the hardware to the mobile phone user and provides access to the mobile network for the contract period of 24 months. The customer pays for this service in monthly installments for two years, i.e. afterwards. The mobile phone dealer bears the financial risk that the contract installments will be paid on time and in full.
Credit bureaus collect information about creditworthiness
In order to minimize, realistically assess or avoid this financial “credit default risk”, the creditworthiness of the consumer is checked. This is where the credit bureaus come into play. They collect all conceivable and accessible data about the end consumer, occasionally also about the companies themselves. A well-known and well-known credit agency is private credit checker, the protection association for general credit protection. It combines all positive and negative information into one score, the private credit checker base score. It is expressed arithmetically in percentage points. The higher the percentage, the better the creditworthiness, i.e. the creditworthiness of the person concerned.
Credit bureaus have shareholders and business partners
The private credit checker score is used as the basis for the credit rating before the contract is concluded, to stay with the private credit checker example. This is only possible with the consent of the end user as a contractual partner. He can hardly say no, because then the sales talk would be over. For its part, the entrepreneur does not forego the possibility of inquiring as a shareholder or business partner of “his credit agency” about the creditworthiness of the contractual partner. From the information from the credit agencies, solvency and willingness to pay can be read, as well as the entire contractual spending behavior. The credit agencies have no information about the income and wealth of the citizen. Only liabilities and expenses are taken into account in the credit rating.
Publicly available as well as contractual information
The databases of the credit bureaus are “fed” in two ways. On the one hand, the business partners have all contracts with their customers entered in the database there. On the other hand, the credit agencies collect information from public announcements from nationwide authorities and courts. The private credit checker score is calculated from this mixed situation and is updated automatically every three months.