• Credit bureaus collect information about consumers from many sources and provide it to businesses for various reasons such as loans, background checks and rental worthiness. Credit bureaus obtain this information from businesses that report all of their accounts to the credit bureau. When businesses want to extend credit to customers, they run a "credit check" to determine if the customer is worthy of receiving the loan for the product. The credit bureau pulls the information for this customer based on the reports it received and sends this to the business.
  
  

Reporting

• The business must contact the credit bureaus and establish an account with them. It fills out a service agreement with each credit bureau. Some third parties will set up the business with the credit bureaus for an additional fee. Each credit bureau has minimum reporting requirements and other restrictions, such as an onsite inspection, that the business must meet before joining. Once it sets up an account, which can take a few weeks, it is ready to begin the process of reporting every month.
  
  

Software

• Software programs, such as Metro 2 have been developed to help businesses report their data. The business purchases the software and adds all of its accounts and sends the files to the credit bureau via the software. The credit bureau receives the data and adds it to its database. The business is responsible for the accuracy of the information they provide. The business must also conform to the laws that govern reporting to credit bureaus. Most software programs incorporate the laws into the software so the company can process the data and answer the legal questions in one step.
  
  

Errors

• Since data entry clerks often enter the information into the software by hand, mistakes can be made. Consumers should order their credit report at least once every year from each credit bureau and determine the accuracy of the information contained within it. If they find discrepancies, they may challenge them and get them removed or amended by providing the correct information to the credit bureau.