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A credit bureau is a company that collects and maintains financial information about individuals and businesses. This information is used by lenders, such as banks and credit card companies, to assess the creditworthiness and risk of potential borrowers. The credit bureau compiles a credit report for each individual or business, which includes details about their credit history, payment behavior, outstanding debts, and other financial obligations. This information is then used to calculate a credit score, which is a numerical representation of an individual's creditworthiness. Lenders use this score to determine whether to approve a loan or credit application, and what terms and interest rates to offer. Credit bureaus play a crucial role in the financial industry by providing accurate and reliable information to help lenders make informed lending decisions.