The purpose of having CICs in the system would be best served when the credit needs of deserving people are met in a timely manner and at a reasonable cost.
For lenders, credit bureaus’ collection and transformation of borrower information into a credit score also helps reduce transaction costs associated with lending by providing a standardized benchmark that a lender may use to judge a borrower’s creditworthiness. This can also help in cutting down the turnover time in processing credit requests, thereby promoting operational efficiency.