What does the term: "possible credit abuser" mean in the terms of a collection agency?

Question

I just got a status update report from the credit and collections company that I work with. I reported several people who owe money to my corporation a few months ago. One person is listed as "possible credit abuser."
What does this term mean?
Serious answers please. I would prefer to hear from people either in the business of collections or credit reporting.

Thanks!

Answer 1

The term "possible credit abuser" refers to someone who may do any of the following: (1) May be routinely late on payments, (2) May get credit cards and run them up to the limit, (3) May have too many credit obligations as compared to their income -- like a house payment, two car payments, and several credit cards where the monthly payments exceed half their gross income. This is in contrast to someone who is listed as a "credit risk" because those people usually have repossessions and/or foreclosures on their record, or they usually have credit obligations that have been referred to collections agencies.

Answer 2

I have over 10 years of credit / collection experience

What it means is that person in particular had missed a payment or two before on a credit card or a loan.

It can also mean that a certain credit limit was allocated to them, per example, $1,000.00 per 28 days (remember, AMEX's full balance was payable every month) and that they have:

1) exeeded thee allocated credit limit or
2) have reached the limit and have not paid the full balance due

What you can do in order to secure funds for your corporation is ask for a deposit on account. If your business exposure with this client is approximately $2,000.00 / month, then ask for that much as a deposit..... Always cover your tracks and back. Keep in mind that people go bankrupt daily and no body is immune.

Hope this helps

Answer 3

The whole issue of racism is nonsense. Yanks - Americans, Limeys - Brits. Taffy - Welsh, Jock - Scots, Aussie - Australians, Paddy - Irish. These are terms commonly used and no one takes offence. Some races however take offence at nicknames given to them and start throwing the race card around. Personally I think it's just a sign of insecurity.

Answer 4

People who scam their way to credit repeatedly and then default on their loans.

Not the same as someone who just can't afford to pay their old loans

Answer 5

This term is used to designate those who open accounts with no intent of re-paying the dollars
This is different from someone who is over-extended

Answer 6

It means a big spender. He abuses his credit.