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Credit Reporting Agencies Companies that provide consumer and commercial trade credit reports are known as credit reporting agencies. The large databases that these agencies maintain ensure that information is available on most businesses to any requesting creditor for the purpose of evaluating a request for open account credit terms. Services and reports vary by credit reporting agency, and many agencies require data contributions from creditors to ensure that database information remains fresh and timely. Credit associations can be considered credit reporting agencies, because sometimes they maintain their own databases of information gathered from their members' trade experience. Before using the services of reporting agencies, a creditor should weigh the benefits provided by the information against the cost of the information. The cost of each business credit report depends on a number of factors including:
Note: Credit reporting services usually:
Two of the largest credit reporting agencies are Dun & Bradstreet and Experian. Edited by Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore. |
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