Credit Repository
Definition and meaning of Credit Repository in real estate.
A credit repository is an organization that collects, maintains, and licenses consumer credit histories and financial data.
In more detail
Commonly referred to as a credit bureau, a repository gathers data from creditors, courts, and utility companies to build consumer credit files. In the United States, the three major repositories are Equifax, Experian, and TransUnion. These entities do not make lending decisions, they simply organize the data and calculate credit scores. Mortgage lenders purchase reports from these repositories to evaluate a borrower's creditworthiness during the home buying process.
Key facts
| Category | Mortgages & Financing |
|---|---|
| Also known as | Consumer reporting agency or credit bureau |
| Primary function | Data collection and reporting |
| Major US repositories | Equifax, Experian, and TransUnion |
A mortgage lender requests files from three credit repositories to generate a comprehensive credit profile for a potential home buyer.
Frequently asked questions
Do credit repositories make the final decision on mortgage approvals?
No, repositories only provide credit data and scores, the mortgage lender makes the ultimate decision on loan approval.
Where do credit repositories get their information?
They receive regular updates from banks, credit card issuers, auto finance companies, and public court records.
Can a consumer ask a credit repository to remove correct but negative information?
No, repositories are not legally required to remove accurate negative information before the standard seven to ten year period expires.