Creditors report information about their customers or borrowers to credit reporting agencies using trade lines. A trade line will include all of the information about the credit extended by a lender.
Features
A trade line will include the name of the creditor, the balance, opening date, date last paid, credit limit, and the credit rating.
Identification
Trade lines also indicate the status of an account. You can tell if an account is written off as a bad debt or charged off. These are accounts which the creditor has determined they are unable to collect and reported them as losses to the IRS. They also remove these accounts from their receivables listing.
Debt Management
You tell if someone is participating in a debt management plan by looking at the trade line. These type of plans help people who have overextended themselves financially. Debt management plans work by reducing payments, getting fees waived, and lowering the interest rates on accounts.
Installment
By looking at a trade line you can tell if someone has an installment account. The designation will be an I before the credit rating. An installment account is set up for a certain number of payments like an auto loan.
Revolving
A trade line will let you know if an account is a revolving account such as a credit card. Right before the credit rating there will be an R.
Updates
According to Mortgage News Daily, creditors are supposed to send updated information to the credit reporting agencies once a month.
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