Understanding A Consumer Credit Report


A kulutusluotot report is a record that has limited personal information about you. This report is used primarily by lenders and also creditors to determine your credit worthiness or the reputation when you apply for a loan. The credit history section shows most common information such as mortgages, personal loans, credit card etc. There are certain commonly used terms in kulutusluotot. Understanding these terms would mean understanding your credit report.

Common Terms:

1) Credit Report: First of all, credit report is a very complex report which contains the credit history of the consumer. This report is generated by an agency and this report contains not only the present credit’s information of the consumer but also the past information as well.

2) Credit Reporting Agency: These are also referred by credit bureaus. Agencies are the companies whose main aim is to collect the information of a consumer and also to maintain it. It is only because of these agencies that today the lender is able to see the detailed report.

3) Foreclosure: Foreclosure is usually when you have taken a mortgage loan. This is the legal process where the creditor can sell your property in order to recover his money.

Chapters on Bankruptcy: There are 3 chapters which are very important when it comes to credit report.

1) Chapter 7: This chapter deal with bankruptcy. This is the most common form of consumer bankruptcy. In this chapter, Bankruptcy releases the debtor from any liability included in a bankruptcy for the credit accounts. In exchange for this, the debtor will have to forfeit his personal property. This chapter of bankruptcy remains on the credit report for a period of 10 years.

2) Chapter 11: This Chapter 11 of Bankruptcy is usually used for business purposes. In some cases, this chapter is applicable if the amount involved is very large. However, Chapter 7 and Chapter 13 can be much simpler and provide better protection for most consumers.

3) Chapter 13: Chapter 13 of Bankruptcy is a type of consumer bankruptcy. In this, the debtor does not forfeit any personal property but the consumer usually agrees to a 3 to 5 year wage earner plan by which all the repayment can be done by debtor.If the chapter 13 is open or dismissed, it remains on the consumer credit report for the duration of 10 years.

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