Bad Credit Loan
Bad Credit Loans are loan extended to those with bad credit history or those with low credit ratings.Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score. When a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau, along with constant updates on the status of their credit accounts, address or any other changes made since the last time they applied for any credit. This information is used by lenders such as credit card companies to determine an individual's or entity's credit worthiness; that is, determining an individual's or entity's means and willingness to repay an indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
International Issues
Credit history is typically local to one country. Even within the same credit card network information is not shared for different countries. For example, a person who has been using Visa credit cards issued by banks in China or Canada for many years who moves to the United States and immediately applies for a Visa will not be approved because of lack of credit history. An immigrant must establish a credit history from scratch in the new country, which can take years. New immigrants are forced to seek loans from irregular channels, which can create social problems. Adverse credit history, also called sub-prime credit history, non-status credit history, impaired credit history, poor credit history, and bad credit history, is a negative credit rating. A negative credit rating is often considered undesirable to lenders and other extenders of credit for the purposes of loaning money or capital.
Annual Credit Report
In the USA, federal law mandates that a person may receive their credit report free of charge. The only official free site is www.AnnualCreditReport.com. Each of the three bureaus must provide one free report every twelve months. You may request all three at the same time or spread out your requests over the twelve month period. This site is maintained by the three credit reporting bureaus, and the service must be free and available online. It usually takes no more than 5 minutes to obtain an online printout of your credit history report. You are required to answer several personal questions for identification purposes only. The profusion of websites offering credit reports have one thing in common - they all obtain the information by using the AnnualCreditReport.com information that you can get for free in five minutes. Your credit score is determined by each separate credit bureau and may differ with each one. You do have to pay for a credit "score" from each bureau They may be different with each bureau. (reference USA Today, November 28, 2007.)
The Government of Canada offers a free publication called Understanding Your Credit Report and Credit Score. This publication provides sample credit report and credit score documents with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication is available online at http://www.fcac.gc.ca, the site of the Financial Consumer Agency of Canada. Paper copies can also be ordered at no charge for residents of Canada.
Adverse Credit
A consumer or business' credit history is regularly tracked by credit rating agencies. The data reported by these agencies is primarily provided to them by creditors and includes detailed records of the relationship a person or business has with the lender. Detailed account information, including payment history, credit limits, high and low balances, and any aggressive actions taken to recover overdue debts, are all reported regularly (usually monthly). This information can be quite detailed and arduous to navigate by a potential lender dealing with a new applicant. To address this issue, credit scoring was invented.[citation needed]
All credit bureaus also offer a supplemental service called credit scoring. Credit scoring is the process of using a proprietary mathematical algorithm to create a numerical value that alleges to be a total picture of an applicants creditworthiness. Scores, frequently based on numbers (ranging from 300-850 for consumers in the United States), are alleged to statistically analyze a credit history, in comparison to other debtors, and gauge the magnitude of financial risk. Since lending money to a person or company is a risk, credit scoring offers a standardized way for lenders to assess that risk rapidly and "without prejudice."[citation needed]
Credit scores allege to assess the likelihood that a borrower will repay a loan or other credit obligation. The higher the score, the better the credit history and the higher the probability that the loan will be repaid on time; this theory purports. When creditors report an excessive number of late payments, or trouble with collecting payments, a "hit" on the score is suffered. Similarly, when adverse judgments and collection agency activity are reported, even bigger "hits" on this score are suffered. Repeated hits can lower the score and trigger what is called a negative credit rating or adverse credit history.When a lender requests a credit score, it can cause a small drop in the credit score.
source : wikipedia.
Bad Credit Loans are loan extended to those with bad credit history or those with low credit ratings.Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score. When a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau, along with constant updates on the status of their credit accounts, address or any other changes made since the last time they applied for any credit. This information is used by lenders such as credit card companies to determine an individual's or entity's credit worthiness; that is, determining an individual's or entity's means and willingness to repay an indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
International Issues
Credit history is typically local to one country. Even within the same credit card network information is not shared for different countries. For example, a person who has been using Visa credit cards issued by banks in China or Canada for many years who moves to the United States and immediately applies for a Visa will not be approved because of lack of credit history. An immigrant must establish a credit history from scratch in the new country, which can take years. New immigrants are forced to seek loans from irregular channels, which can create social problems. Adverse credit history, also called sub-prime credit history, non-status credit history, impaired credit history, poor credit history, and bad credit history, is a negative credit rating. A negative credit rating is often considered undesirable to lenders and other extenders of credit for the purposes of loaning money or capital.
Annual Credit Report
In the USA, federal law mandates that a person may receive their credit report free of charge. The only official free site is www.AnnualCreditReport.com. Each of the three bureaus must provide one free report every twelve months. You may request all three at the same time or spread out your requests over the twelve month period. This site is maintained by the three credit reporting bureaus, and the service must be free and available online. It usually takes no more than 5 minutes to obtain an online printout of your credit history report. You are required to answer several personal questions for identification purposes only. The profusion of websites offering credit reports have one thing in common - they all obtain the information by using the AnnualCreditReport.com information that you can get for free in five minutes. Your credit score is determined by each separate credit bureau and may differ with each one. You do have to pay for a credit "score" from each bureau They may be different with each bureau. (reference USA Today, November 28, 2007.)
The Government of Canada offers a free publication called Understanding Your Credit Report and Credit Score. This publication provides sample credit report and credit score documents with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication is available online at http://www.fcac.gc.ca, the site of the Financial Consumer Agency of Canada. Paper copies can also be ordered at no charge for residents of Canada.
Adverse Credit
A consumer or business' credit history is regularly tracked by credit rating agencies. The data reported by these agencies is primarily provided to them by creditors and includes detailed records of the relationship a person or business has with the lender. Detailed account information, including payment history, credit limits, high and low balances, and any aggressive actions taken to recover overdue debts, are all reported regularly (usually monthly). This information can be quite detailed and arduous to navigate by a potential lender dealing with a new applicant. To address this issue, credit scoring was invented.[citation needed]
All credit bureaus also offer a supplemental service called credit scoring. Credit scoring is the process of using a proprietary mathematical algorithm to create a numerical value that alleges to be a total picture of an applicants creditworthiness. Scores, frequently based on numbers (ranging from 300-850 for consumers in the United States), are alleged to statistically analyze a credit history, in comparison to other debtors, and gauge the magnitude of financial risk. Since lending money to a person or company is a risk, credit scoring offers a standardized way for lenders to assess that risk rapidly and "without prejudice."[citation needed]
Credit scores allege to assess the likelihood that a borrower will repay a loan or other credit obligation. The higher the score, the better the credit history and the higher the probability that the loan will be repaid on time; this theory purports. When creditors report an excessive number of late payments, or trouble with collecting payments, a "hit" on the score is suffered. Similarly, when adverse judgments and collection agency activity are reported, even bigger "hits" on this score are suffered. Repeated hits can lower the score and trigger what is called a negative credit rating or adverse credit history.When a lender requests a credit score, it can cause a small drop in the credit score.
source : wikipedia.