Consumer Credit Bureau

Consumer Credit
Short-term loans made to enable people to purchase goods or services primarily for personal, family, or household purposes. Consumer credit transactions can be classified into several different areas. Installment credit involves credit that is repaid by the borrower in several periodic payments; loans repaid in one lump sum are classified as noninstallment credit.Installment credit has expanded in popularity, with an increasing number of consumers buying goods on credit in order to spread repayment of the purchase price plus the interest owed on the principal borrowed over a series of payments.

Credit Bureaus

Credit bureaus publish reports which are primarily used by merchants who are attempting to decide whether or not to allow consumers to purchase merchandise financed by credit that will be repaid on time. Such reports ordinarily disclose financial information, such as the location and size of an individual's bank accounts, charge accounts, and other debts and the person's bill-paying habits, income, occupation, marital status, and lawsuits.
Credit bureaus supply such information to a group of subscribers who, in exchange, provide them with information for their files. All the information obtained is filed in case it is requested by someone in the future. Nonsubscribers can ordinarily obtain information through the payment of a fee.
A majority of credit bureaus are members of the Associated Credit Bureaus of America, which regulates public information for them. It keeps members apprised of financial transactions that might cause people to be unable to meet their obligations.

See also: Consumer Credit Bureau , Credit Rating , Credit Report , Fico Credit Score , Fair Credit Report , Home Equity Loans , Free Credit Report