Identity score

It is said that a true man wears his own identity wherever he goes. Identity score as defined from financial institutions determines the validity of a person’s individuality.

Identity score always deals with persons’ public realm. Identity score is gradually gaining popularity in the sector of banking and commercial dealing.

It is now been considered as a reliable concept to tackle the rising cases of forgery, corruption and deceit in business dealings.

By applying identity score banks and associated organizations can assess the public identity records.

Identity scores contain a detailed account of consumer data that assures a person’s legitimacy.

Identity score components can include personal Identifiers public records, Internet data, government records, corporate data, predicted behavior patterns based on empiric data, self-assessed behavior patterns, and credit records.

It is also right to mention that identity scoring is an upcoming measure that directly assists crime investigation and proposes to prevent anti-terrorism.

Identity scores can be broadly categorized under three
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Credit Scores

Credit scores determine if someone gets approved or declined on any type of credit.

In commercial terms, credit scores are defined as numerical expression based on a statistical analysis of a person’s credit files, generated by a mathematical algorithm.

To be more precise, credit scores are determined on the basis of the certain amount of credit a person has taken.

His credit statements are compared with the accounts of other people applying for credit to the same financial body.

Bankers and credit card companies are termed as lenders who use credit scores to evaluate the potential risk while lending money to the consumers and to alleviate losses due to bad debt.

Credit scores are being used by the lenders to determine who qualifies for a loan and who does not, at what interest rate, and what credit limits they could lend the money to the person and in what time and what interest they could get their refund back.
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Credit Scorecards

Credit scorecards are created with the help of statistics. First, all past loan applications of
interested consumers are collected.

Then these applications are divided into two essential categories.

The first one deals with the people who repaid their loans in due time without much hassle.

The second one deals with those of the defaulted.

It is mandatory to compare the first group with the second one to prepare an appropriate scorecard.

Credit scorecards provide a accurate measurement of the likelihood that a customer will repay the credit amount back in the allowed amount of time.
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Credit report

It’s really awesome to buy products without clearing the full bill and keeping the transactions on the way.

But one must remember that while doing transactions in credit they must keep an eye on the credit facilities and must have their credit reports of the last transactions.

Credit reports tell us about the person’s details, address, contact number, personal details, where he/she works, social security number, and marital status, descriptions about previous jobs, recent positioning, income, debt, and length of employment and also it contains other factual history of your credit experience with the credit granter.

But on credit reports no records of arrest, specific purchase, and medical records are kept. Credit report are being sold out by the credit reporting agencies where you are being evaluated for business, insurance, employment and other purpose allowed by federal laws.
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Credit reference

Credit is granted when an organization or an individual makes money enough to give its customers some of it to borrow. There are mainly two kinds of credit-

a) Home loans, or mortgages, and personal or shop loans are linked to a specific item or items and

b) Revolving credit on payment cards can give an individual access to a fixed amount of money that he or she can spend as he or she wishes, in a wide range of retailers and other outlets.

Credit reference can also be referred to as credit history. It is handy information, which holds the creditors personal information, be it of a person or an institution or an organization.

It provides dealers an account of credit applicants’ past credential dealings in order to make a more accurate decision…
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Credit Rating Agencies

Nowadays a country’s financial growth depends on how much its citizens invest and its annual expenditure and profit.

Giving credit has always been in fashion, for it brings in good money to the potential lenders.

In the same way it allows consumers to have means to participate largely into the country’s financial benefits in this enormous money play discipline in of utmost importance.

Credit bureaus maintain credit records and likewise Credit rating agencies determine the appropriate rates according to which consumers and lenders work out their dealings.
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Credit history

Credit according to the financial experts, is a contractual agreement in which a borrower receives something of value at a particular point of time and agrees to repay the lender at some later date.

Credit is believed to determine the borrowing capacity of an individual or company. Credit history is the record of someone or their organization’s financial dealings based on credit.

It is an account of their past borrowing and repaying. It also contains facts about late payments and bankruptcy, if there is any.

A credit reputation can also be used as an alternative to credit history. Credit history is generally maintained by credit bureaus set up in several countries.

When a customer interested in obtaining credit applies for credit from a bank, whether it is a nationalized bank or private bank, his personal inputs are forwarded to these credit bureaus.
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Consumer Credit Repair

The most fascinating thing about Credit is it allows consumers to finance transactions without having to pay the full cost of the total billing at the time of the transaction.

It is helpful because the consumers could buy the product in credit form and could pay it according to the deal. The most common means of consumer credit is a credit card account issued by a bank.

Now a days mostly each and every financial institution have given this opportunity to the customers. Merchants may also provide financing for products which they sell.

Banks may directly finance purchases through loans and mortgages in that case small sources business persons are getting real help for outsourcing their product and not wasting their total gross amount.

It is well protected in federal and state statutory laws. These laws protect consumers and provide guidelines for the credit industry.

Different countries have issued different rules to maintain various statutes regulating consumer credit.
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Adverse credit history

There are many problems about the credit dealings because sometimes during the dealings the creditors have to face unforeseen complications.

As it has become a part of our life we sometimes ignore the problems we face through it. Though they also offer you extra protection, when things go wrong you may have spent more money than what you figured on and the protection may not help.

But if you have been in financial trouble at some stage, which most people have sometime and have arrears, a county court judgment or bankruptcy, the creditors may find it very difficult to issue you a credit card.

It has been seen that this adverse credit history hampers the person’s life in later periods, as they have a poor financial record in the past they could not avail credit card facilities though they have sorted out their finances.

There are many factors which could create adverse credit history and could lead you into trouble, which are as follows.

If you have not paid arrears on your mortgage or other loans, if the payments are not made on time and are over 30 days late on your mortgage or other loans, county debt is going against you, if your claiming address is false and you are not available at the voters list on that address then also it is counted as your negative point.

If you are a multiple applicant for different credit cards then it acts as a negative score to your credit history. One of the main things is Recent Bankruptcy (undercharged bankrupts will always act as negative points to refused credit).

And last but not the least is Repossession, it is also a bad thing to have on your credit.

About Credit Algorithms

Algorithms are known as one of the best known processes to count the credit scores, and different well known top ranking credit scores companies use different methods to have their credit scores done, FICO is the best well known scoring method

BEACON score is being used by Equifax,and the Experian has the Experian/Fair Isaac Risk Model and Trans Union mostly use EMPIRICA score, it is also in different algorithm form.

More or less it work like a school progress report chart where different percentages are given for fixed category of work you have done, your score will count your standard finally with the total percentages you received.

Approximately 35% is counted according to the payment procedure you have paid back to the bankers, they would see the time, date means how many was left out of collections and how many late payments were done.
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