Who prepares a report of an individual's credit history used in loan applications?

The correct answer is the credit bureau because credit bureaus are specialized organizations that collect and maintain individuals' credit information. They gather data from various financial institutions about how individuals manage their debts, including their payment history, amounts owed, the types of credit being used, and the length of credit history. This compiled information is then used to generate credit reports, which lenders consider when evaluating loan applications.

A credit report includes vital details that inform lenders about an individual’s creditworthiness, helping them assess the risk of lending money. Therefore, the role of the credit bureau is central to the process of preparing these reports, ensuring that lenders have the necessary information to make informed decisions about loan applications. Other entities like credit unions, mortgage brokers, or debt recovery agencies do not have the primary function of creating credit history reports; rather, they often utilize the reports generated by credit bureaus in their respective processes.