Credit agencies in the USA, such as TransUnion, Equifax, and Experian, play a significant role in determining an individual's creditworthiness. How do these credit agencies primarily collect and utilize data?
a) They collect data solely from creditors and public records, excluding personal information provided by individuals.
b) They gather information from various sources including creditors, public records, collection agencies, utility companies, and personal information provided by individuals. This data is compiled to create credit reports and calculate credit scores, which lenders use to assess the risk of lending money to individuals.
c) They primarily rely on personal information provided by individuals, as it provides the most accurate representation of an individual's financial behavior.
d) They collect data exclusively from utility companies, as payment history for services such as electricity and water is considered the most important factor in determining creditworthiness.