Another often used form of credit is a mortgage loan. When consumers decide to buy a house, they go to a bank or finance company to take out a mortgage. The loan is based on collateral and a specific number of payments are scheduled for a specified period of time. A car loan is also this type of credit. A third form of credit would enable consumers to obtain a loan without collateral to make improvements on their home.
Payments are for a specific amount for a specified period of time.
These loans are made against a borrower's property and the amount of the loan is based on the equity in the home. A credit report is a picture of your credit, debt and payment history. When you apply for credit such a credit card or a loan, this is reported to one of the major credit bureaus and a file is established in your name. Your credit history includes the names of your creditors, your payment history, and consumer statements made by you. There are several ways to acquire a credit history.