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Company Loan Type APR Est. Pmt.

30 day accounts

Posted on: 26th Aug, 2006 11:39 pm
hi guys
let me make it clear for u guys first see i know all about credit report but when we underwrite a loan using Automated underwriting system using LP or DU we are unable to make out if an Account is 30 day or revolving.One of my friend suggested that all 30 day account have same payment n balance reflected in credit report Plz enlighten me on this and if possible tell me how 30 day account are different from revolving account .I know in credit report there is a summary of all accounts but i want to know the criteria based upon which different accounts are classified.

A 30 day account is a savings account from which you can withdraw money in 30 days' notice. If you take out cash from the account without notice, you may lose 30 days interest on the amount you withdraw. A 30 day account gives the chance to earn high rate of interest on savings.

A revolving account is an account that allows a borrower to pay a part or the total loan balance and again withdraw cash from the same account. Credit cards and departmental store credit cards are revolving accounts.

Revolving account need a minimum monthly payment (interest or service charge). From these accounts, you can borrow maximum and carry a balance. While the debt is paid off, the service charge or interest rate is also lowered.

Hope I could give a useful answer.

D. Owen
Posted on: 27th Aug, 2006 10:20 pm
Hi Karthik,

Underwriting a loan using Automated Underwriting System (AUS) helps lenders to analyze the information needed to evaluate the loan.

"how 30 day account are different from revolving account"

There are two types of credit card accounts:

  1. Revolving Credit Card Account: In this type of account, the borrower does not require immediate repayment of the credit charges. They are only responsible to make minimum monthly payment, which is a small percentage of total balance amounts.

  2. 30 days account: In this account, the holders require to make full payment within 30 days.

"I want to know the criteria based upon which different accounts are classified."
The following factors are considered while evaluating a loan by Automated Underwriting System:
1. Credit Reporting Factors
  • Credit history
  • Delinquent accounts
  • Credit card accounts
  • Public records, foreclosures, and collection accounts
  • Inquiries

2. Non-Credit Reporting Factors
  • Equity and loan-to-value ratio
  • Liquid reserves
  • Debt-to-income ratio
  • Loan purpose, type and term
  • Property type
  • Number of borrowers
  • Self-employed borrowers

All of the risks factors are taken into consideration while determining an underwritten recommendation. When AUS determine that a loan application does not meet a single factor, it refers to human underwriter for further reviews. Also, provide suggestion about the addition information that could be helpful for the borrower.

Posted on: 27th Aug, 2006 11:33 pm
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