Consumer Credit

The most fascinating thing about Credit is it allows consumers to finance transactions without having to pay the full cost of the total billing at the time of the transaction.

It is helpful because the consumers could buy the product in credit form and could pay it according to the deal. The most common means of consumer credit is a credit card account issued by a bank.

Now a days mostly each and every financial institution have given this opportunity to the customers. Merchants may also provide financing for products which they sell.

Banks may directly finance purchases through loans and mortgages in that case small sources business persons are getting real help for outsourcing their product and not wasting their total gross amount.

It is well protected in federal and state statutory laws. These laws protect consumers and provide guidelines for the credit industry.

Different countries have issued different rules to maintain various statutes regulating consumer credit.

The Uniform Consumer Credit Code) has been adopted in eleven states and Guam. Its purpose is to protect consumers obtaining credit to finance their transactions, so that while availing this credit system adequate credit is provided to the consumers, and also to govern the credit industry in general good condition.

Laws are there in the name of Consumer Credit Protection Act which regulates the consumer credit industry, it helps the creditors to disclose credit terms to consumers so that there might not be any hidden pros and cones.

The Consumer Credit Protection Act also protects consumers from big bite loans, restricts the lucrative use of wages, and established the National Commission on Consumer Finance to investigate the consumer finance industry so that it can run credits smoothly. Read more...

Identity Score

It is said that a true man wears his own identity wherever he goes. Identity score as defined from financial institutions determines the validity of a person's individuality.
Identity score always deals with person's public realm. Identity score is gradually gaining popularity in the sector of banking and commercial dealing.

It is now been considered as a reliable concept to tackle the rising cases of forgery, corruption and deceit in business dealings.

By applying identity score banks and associated organizations can assess the public identity records.
Identity scores contain a detailed account of consumer data that assures a person's legitimacy.

Identity score components can include personal Identifiers public records, Internet data, government records, corporate data, predicted behavior patterns based on empiric data, self-assessed behavior patterns, and credit records.

It is also right to mention that identity scoring is an upcoming measure that directly assists crime investigation and proposes to prevent anti-terrorism.

Identity scores can be broadly categorized under three heads:

a) public records,

b) private records and

c) credit records.

Public record can further be segregated into sections like national, state and local government records, financial records like bankruptcies, liens and judgments, property ownership records and law enforcement records for felony and misdemeanor convictions.

Private (non-credit) records can hold in itself any of the following details:

a) Bill and utility payments,

b) collected personal information from marketers or affiliates,

c) information provided to subscription-based Internet services,

d) billing information from medical services,

e) private background checks conducted by human resource departments and information submitted to any or all credit bureaus or credit reporting agencies and
*Auto insurance* underwriting scores generated from credit records. Read more...

Credit Reference

Credit is granted when an organization or an individual makes money enough to give its customers some of it to borrow. There are mainly two kinds of credit :

a) Home loans, or mortgages, and personal or shop loans are linked to a specific item or items and

b) Revolving credit on payment cards can give an individual access to a fixed amount of money that he or she can spend as he or she wishes, in a wide range of retailers and other outlets.

Credit reference can also be referred to as credit history. It is handy information, which holds the creditors personal information, be it of a person or an institution or an organization.

It provides dealers an account of credit applicants past credential dealings in order to make a more accurate decision.

Credit rating agencies essentially play this role in while working with consumer credit. Potential lenders, that is individuals or organizations or institutions that are interested in investing their money, consult with established credit rating about appropriate
applicants.

These initial talks are necessary for it decides whether the said person, organization or institution is reliable enough to be granted credits.

Credit references helps to assess whether if an applicant's credit history indicates proper, timely payments on all outstanding obligations.

A lender would be able to judge all by himself whether that the applicant will make timely payments on the requested loan or not.

Credit references also indicate the applicant's bank account, what type of account it is, mentioning at the same time about overdrafts.
Read more...