Question

Companies report people to credit agencies if they

Answer 1

Companies report people to credit agencies if they fail to pay their bills on time. That is why there are many, who do not have the amount to pay, go to jail but there are rights in which it protects the customer to be prisoned due to not paying their debts.

Answer 2

Companies report people to credit agencies if they fail to pay their bills on time.

Creditors reports history with other lenders and the debtor's borrowing activities (debts and payments) to Credit agencies. Credit agencies collects information about individual or business debts and assigns a credit score. The credit score demonstrates borrower's creditworthiness, serving as a guide to other lenders. If the debtor fails to pay bills on due dates, the credit score will most likely be low. Lenders will mostly refuse to approve future loans as a low credit score indicates the applicant is a bad payor.