Consumer credit loan is a new product under financial innovation, commercial banks are gradually lunching this product to personal and companies for non commercial related personal consumption loan. The lunch of personal consumption loans has created a new debt relationship between individuals and banks to finance each other.
After World War II, consumer credit loan has take a important role in the United States economy. Early since the Mid-50, the consumer credit loan the United States has growing rapidly, consumer credit loan has supported many industries, ,meanwhile, changed people’s life in the United States. People who have low income got the chance to buy as much items as rich people do, so that they can live their life like rich people. The United States has stable economic system, perfect legal mechanism and advanced science and technology, enjoy those exceptional advantages, the United States has making it the world most developed consumer credit loan country.
In the United States, credit loan company always turn to credit report organizations for the credit investigation, the top three credit report companies have a big database which covers millions of consumers’ credit file, they wold out millions of those credit files each year. The connection between credit organization, banks, and retailers has made a credit inquiry proceeded with seconds. Some of the companies in the United States are specialized in the collection of socioeconomic background, which offers for credit loans companies a much better understanding of personal credit loan. The completed personal credit loan reporting system has laid a solid base for the growth o consumer credit loan in the United States.
Behind the completed personal credit loan reporting system, problem follows that consumers’ privacy protection, the accuracy of consumer credit report, fairness, authorization etc. from the late 1960s to the 80s, the United States Congress had working on the perfection of relevant laws for the management of credits, and has gradually formed a completed. They are now aim to stabilize the economy, protect the privacy of consumers and solve special social problems such as housing leasing, small business development, agriculture and minority issues. So far, the United States has 16 basic laws for credit management, along with the rules of relevant government, they have contributed to the smooth operation of the United States consumer Credit system. With the development of the market, the related laws of the United States are constantly revised and perfected.
Punishment for credit abusers is a vital part of the American credit system. It is functioned in three ways, First, It’s supported by law that the record of credit abusers can be spread around, so that it is known to all. Second, the law has stated punishment for credit abusers in both economy and labour. Third, punish the serve credit abusers based on the relevant law. The United States had also set up juvenile courts to punish young credit abusers.
The consumer credit loan has various type, there is loan for purchasing luxury goods, purchasing durable goods, loans for vocation, housing repairs, and loans for other services. Housing remortgages, student loans, personal credit lines, personal capital loans, personal housing mortgage loans, car loans, typical one is credit card.
The United States has the largest and perfect housing mortgage market system in the world. Its housing mortgage loans has made great contribution to the settlement of low income families. Housing mortgage loans have take a important part of US banking, counts for more than 40% of the total amount of banking credit in the United States, and the proportion of small and medium-sized banks is even higher than 60%.