Credit Bureau Essay
Consumer Law | The Credit Bureau | Consumer Agency Report |
4/8/2013 |
Introduction Credit reporting companies serve as a ball of information about the consumer use of credit as reported by those by which the consumers borrow credit. Lenders gather and use this information to counterpart any data they have already obtained directly about the borrower’s creditworthiness to aid in their lending making decisions. Lenders have the incitement to report their experiences with the borrowers for the gain of other creditor’s data. The essential of credit data are represented by the consumers representation based on his or hers borrowing behaviors of repayment over time. Today, the regulation has led to a high automated worldwide firm that collect detailed oriented, complete information and conform with a range of polices that’s in the best interest of the consumer. Credit reporting companies give businesses intuition into a consumer’s past behaviors, similar to the prospective an employer may use a candidate’s college transcript. These intuitions may be used to make decisions about his or her stability as well as the willingness to repay debt. Without this information borrowers would more than likely have to provide other information about themselves when applying for any type sought after credit.
History
Credit- reporting agencies emerged first in the United States due to the countries strong commercial orientation was highly conducive to institutional experimentation. Credit bureaus were known in some countries from the early 1860s, due to the industry experiencing a rapid growth only after World War I. There origination was purposed to facilitate the exchange of credit information among merchants. The recommenders usually local or suppliers with whom an individual has previously done business with. The small amount of credit that was granted was solely based on the merchants personal knowledge of the customer, a change came about once
4/8/2013 |
Introduction Credit reporting companies serve as a ball of information about the consumer use of credit as reported by those by which the consumers borrow credit. Lenders gather and use this information to counterpart any data they have already obtained directly about the borrower’s creditworthiness to aid in their lending making decisions. Lenders have the incitement to report their experiences with the borrowers for the gain of other creditor’s data. The essential of credit data are represented by the consumers representation based on his or hers borrowing behaviors of repayment over time. Today, the regulation has led to a high automated worldwide firm that collect detailed oriented, complete information and conform with a range of polices that’s in the best interest of the consumer. Credit reporting companies give businesses intuition into a consumer’s past behaviors, similar to the prospective an employer may use a candidate’s college transcript. These intuitions may be used to make decisions about his or her stability as well as the willingness to repay debt. Without this information borrowers would more than likely have to provide other information about themselves when applying for any type sought after credit.
History
Credit- reporting agencies emerged first in the United States due to the countries strong commercial orientation was highly conducive to institutional experimentation. Credit bureaus were known in some countries from the early 1860s, due to the industry experiencing a rapid growth only after World War I. There origination was purposed to facilitate the exchange of credit information among merchants. The recommenders usually local or suppliers with whom an individual has previously done business with. The small amount of credit that was granted was solely based on the merchants personal knowledge of the customer, a change came about once
Bibliography: Wise Geek. Conjecture, n.d. Web. 08 Mar. 2013 "Best Bank Rates | Compare the Best Interest Rates Today." GoBankingRates.com. N.p., n.d. Web. 08 Mar. 2013. WiseGeek. Conjecture, n.d. Web. 08 Mar. 2013. N.p., n.d. Web. 8 Mar. 2013. <http://www.referenceforbusiness.com/small/Co-Di/Credit-Bureaus.html>. Hill, Sidney, Jr. "Collections and Credit Risk." (n.d.): n. pag. Print.