The History of Credit and the Bureau
Creditors, Bad Credit, Credit Reports and the Bureau
Our nation is in chaos and the root of it all stems from good graces of man. Credit is deeply rooted into our history and it stems from a person's or merchants product or service priced too high for the average consumer; or when payment for the item(s) was not convenient at the current time. This was the birth of the consumer credit program.
Let's look at a typical California House priced at $395,000. The builder, in order to make a profit, needs to sell many of these homes at this price. How many of us have $395,000 to plop down in one lump sum?
If the builder only sold homes to people who could pay the lump sum, they would not sell many homes and the price would skyrocket to $3,395,000 due to the need for the builder to earn an equitable profit. On the other hand the builder would not make any profit if the homes were sold at $4000 or even $40,000.
The homes must be sold at a price that is consistent with perceived value and quality, but still needs to make it available to the average consumer. This is the reason the mortgage business is so huge.
Let's look at another example. This trend is deeply rooted in our history. Have you ever gone to a store and realized you didn't have the money to purchase an item? Remember asking the store clerk to put it on your account?
Actually you can still find this type of system where the merchant would allow the consumer a period of up to 30 days to repay the debt; when payment for the goods or services is not convenient.
This began back in the days of the general store where a patron would come by and pick up a few items, charge them to a personal account and the patron would agree to pay the entire account by the end of the month.
You can still find this type of environment but it's gone for the most part replaced by the modern day credit and department store cards. This is a system designed with the theory that you never have to pay off the balance in full - the revolving credit or charge account. Pay off some and spend it to the limit.
This is where people get in to trouble everyday; from late payments piling up debt and adding stress; who needs it? As an evolution of this process, it was natural that some type of credit reporting system would be created; the dawn of the credit bureau.
Creditors or merchants were concerned about doing business with bad debtors; they needed a way to report problem consumers and a way to get the information about them before they established an account for them.
Now that the bureau had been born they began tracking information on individuals and businesses, selling that information to subscribers (creditors) and receiving information as well.
Let's look at a typical California House priced at $395,000. The builder, in order to make a profit, needs to sell many of these homes at this price. How many of us have $395,000 to plop down in one lump sum?
If the builder only sold homes to people who could pay the lump sum, they would not sell many homes and the price would skyrocket to $3,395,000 due to the need for the builder to earn an equitable profit. On the other hand the builder would not make any profit if the homes were sold at $4000 or even $40,000.
The homes must be sold at a price that is consistent with perceived value and quality, but still needs to make it available to the average consumer. This is the reason the mortgage business is so huge.
Let's look at another example. This trend is deeply rooted in our history. Have you ever gone to a store and realized you didn't have the money to purchase an item? Remember asking the store clerk to put it on your account?
Actually you can still find this type of system where the merchant would allow the consumer a period of up to 30 days to repay the debt; when payment for the goods or services is not convenient.
This began back in the days of the general store where a patron would come by and pick up a few items, charge them to a personal account and the patron would agree to pay the entire account by the end of the month.
You can still find this type of environment but it's gone for the most part replaced by the modern day credit and department store cards. This is a system designed with the theory that you never have to pay off the balance in full - the revolving credit or charge account. Pay off some and spend it to the limit.
This is where people get in to trouble everyday; from late payments piling up debt and adding stress; who needs it? As an evolution of this process, it was natural that some type of credit reporting system would be created; the dawn of the credit bureau.
Creditors or merchants were concerned about doing business with bad debtors; they needed a way to report problem consumers and a way to get the information about them before they established an account for them.
Now that the bureau had been born they began tracking information on individuals and businesses, selling that information to subscribers (creditors) and receiving information as well.
Click Here for your Free Traffic!
Bankrupt News
| Credit, Bureau - Google Blog Search |
| 5 Credit Bureau Repair Tips The epidemic of home foreclosures, higher gas and food prices have stretchered the average consumers budget to the max. According to Trans Union and Equifax, national credit scores are steadily dropping at a higher rate than they have ... |
| Credit History Credit Profile: Credit Bureau Agencies What if a company issues me a credit card with a 100000 limit and I spent all the money on the card and run away. To avoid such cases, there is a concept of credit history checks or credit profile checks. There are Credit Bureau or ... |
| Cheque Your Attainment Regularly to Avoid a Course credit Bureau ... Errors inwards your attainment story can voice communication adversity. Make sure you detect some mistakes and variety down your course credit bureau difference before applying for a loan. |
| Credit Bureau Repair-How To Repair Credit Scores By Setting Goals I want you to know that a bad credit score can do a world of hurt to your financial life than the typical person really thinks. When trying to learn how to repair credit scores without any outside help, there are many steps that you can ... |
| Credit Scores, Politics and Comedian's So here we are in 2008. There is no such thing as a local credit bureau. No place where an individual can get in their car and go to handle issues relative to their credit file with a service representative face to face. ... |
| 5 Starring Reasons to Cheque Your People Course credit Bureau Account You should cheque your course credit bureau account at least erstwhile a twelvemonth, if not erst every quarter. Inwards today’s world on that point area unit many reasons for a savvy consumer to deprivation to hold on saintly tabs on ... |
| Credit Report Monitoring: Is it Really All That Necessary? So, it may be a good idea when performing your credit report monitoring to place a freeze on your credit with a different credit bureau. Then, wait thirty days before ordering your free credit report. Then, after a further three to four ... |
| How To Check Your Credit Report And Correct Any Errors The credit bureau is a record keeping business of a consumers' use of credit. A credit report provides a credit history, which is a list of facts about how they handle debt. Information is gathered from credit card companies, ... |
| Credit card rejection still ‘is the bank’s prerogative’ Also on the basis of a combination of verifications, credit bureau reports and document verifications. After this mail the consumer is confused about the credibility of rejection and is worried that the refusal might affect her future ... |
| Credit Bureau Connections Equifax Credit Bureau Consumer Fraud PO Box 740241 Atlanta, GA 30374-0241 1-800-525-6285 http://www.equifax.com/ Trans Union Credit Bureau Fraud Victim Assistance Department PO Box 6790Fullerton, CA 92834 1-800-680-7289 ... |
| RSS integration by RSSinclude |