The credit bureaus only collect information about your credit behavior from your creditors and credit service providers that you do business with. Furthermore they use one of the standard algorithms to determine your credit score. The most popular amongst the credit scoring models is perhaps the FICO score model. A credit bureau only records information related to your credit and information from public records such as tax liens, bankruptcy filings on the chapter 7, 11 and 12, federal court judgments that are related to monetary matters, name, address, phone number and social security number. The denial or approval of credit is done solely by the creditor. When you present an application for credit, the creditor will almost always request a copy of your credit report from one or all of the three national credit bureaus. Based on what the creditor perceives as favorable or unfavorable information on your credit history, they will accept or deny your application for a credit. Different creditors may look at different aspects of your credit report in order to ascertain your creditworthiness for the service you have requested.
Most of the creditors and financial services work on an equal exchange of information policy with the national credit bureaus. This means that not only can they access your credit report under the fair credit reporting act but also provide the credit bureaus with information on your credit behavior when you to business with them.