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Risk Factors - It's All About Credit Risk
Typically a lender will use a combination of your credit score with other factors when determining your risk.
Character:
Length of residency and employment. This information is primarily used by lenders to evaluate your financial character.
Credit grantors will review your existing credit relationships: bank loans, credit cards, mortgages, etc.
Capacity:
What are your open credit limits, living expenses, current debts and other payments? How much debt you can realistically handle given your income.
Credit Grantors will look at your total living expenses, current debts and any additional payments you will begin making if they loan you money.
Collateral/capital:
How is the loan secured? Is it secured by an asset or down payment? What is the value of the
down payment or asset compare to the loan amount.
Next Chapter >>
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INTRODUCTION
FACTORS THAT INFLUENCE YOUR CREDIT
THE CREDIT SYSTEM
RISK FACTORS
HOW MUCH DOES A LOW SCORE COST YOU
HOW ARE CREDIT SCORES CALCULATED
WHAT CAN YOU DO
MAINTAINING AND IMPROVING YOUR CREDIT SCORE
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