|
A Collection of Informative and Interesting Articles
Absolutely Free - Start Sharing Your Knowledge Today! |
Home | Submit Articles | Login Online Since Year 2000 |
| ALL Categories | HEALTH | EDUCATION | FINANCE | TECH | WOMEN | ENTERTAINMENT | TRAVEL |
What is a Credit BureauBY: Vivek SHARMA | Category: Finance | Submitted: 2011-03-02 10:59:01
The term ,' Credit Bureau' is in use for around a century now. There are different connotations of the term,' Credit Bureau'. For some it is an entity which keeps records of the customers which have defaulted while some others it means an agency which is similar to a credit rating company. However, credit bureau is much more than these understandings.Credit Bureau is a company or agency which collects data from various sources related to credit transactions and makes the data after compilation available to its members for usage. This means that both the contributors of data and users of data are almost same. The credit bureau makes data available to member institutions which they could not have able to obtain on their own. The source of data for credit bereau is the different credit grantors like banks, financial institutions. Just to make the understanding clear through an example, let us take the case of few (5 in number) banks who have given credit to their clients. Independently they can access data related to their clients only but since a credit bureau is existing it collects data from different sources i.e. all five banks and makes the data in a format available to members. The data is made available by the credit bureau in form of a report often called as ,' Credit Information Report'. The credit information report provides details on how the customer performed on the credit availed by him in the past. This makes the job of credit grantors easy when they intend to approve a new credit for the same customer. Many credit bureaus provide credit performance of customer in form of a score which is known as the credit score of the customer. The credit score is decided on factors as delinquency, utlilisation of credit, credit mix, some demographic factors etc. There are several credit rating agnecies across the world. However some of the known agencies are: 1) TransUnion 2) Equifax 3) Experian 4) Call Credit 5) Compuscan The role of credit rating agency has acquired significance over a period of time and many financial institutions use the data provided by credit rating agency for the purpose of granting of credit. They have become a pillar of strenght for financial institutions and help them mitigate risk related to credit. Article Source: http://www.saching.com/ About Author / Additional Info: Comments on this article: (0 comments so far)
Additional Articles: • The Transit Phase From Nomadic to Settled Life • FDI In Retailing - The Road Ahead • Tribal Population in India - Important Characteristics of Indian Tribes • Tips For a First Time Visitor to India. Latest Articles in "Finance" category: • Making Sure Your Charity Gets the Most Out of Your Donation • Increased Savings By Smarter Purchasing Practices • What is Alternative Investment Market (AIM)? • FDI In Retailing - The Road Ahead • Trade the Major World Currencies Online • How Important is Economic Analysis For Fundamental Analysis of Stocks? • Health Protection of Your Family is Your Key Responsibility Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms. 
Copyright © 2010 saching.com - Do not copy articles from this website. |
|||||||
| | Home | Disclaimer | Xhtml | | |||||||
