Maintain your old Siemens Hipath system

How Creditors Measure Your Credit Rating

Creditors will measure your credit rating based on the following three main things.

  • Capacity

  • Collateral

  • Character

    The three "C's" show creditors your:

    • "Capacity" or income to pay the debt

    • "Collateral" or assets to secure the obligation

    • "Character" shows your compliance to repay the debt

    1. Capacity

    The very first question is whether you have sufficient income to repay the debt. Creditors will definitely check to see if your income exceeds your expenses so that you ca comfortably pay the debt. A creditor will then want to know:

    • Your income - from all sources

    • Your fixed expenses

    • Your other debts

    The amount remaining from your total net income, after deducting your fixed monthly expenses and other debts, is your capacity. If your net income is $3,000 a month and your total living expenses is $2,500, then your credit capacity is an amount that requires no more than $500 in monthly payments.

    If you now pay $400 a month for other credit obligations, then your remaining capacity is a $100 a month, and a creditor should extend you that amount of credit.

    There are three techniques that will allow you to maximize your income:

    • Increase your income

    • Decrease your expenses (easier to do than the first one)

    • Reduce your other debts

    2. Collateral

    A lender or creditor can be secured or unsecured. Secured lenders hold a lien against specific assets, such as real estate, an automobile, or boat. If you fail to pay, the secured lender can sell the pledged asset to recover debt owed. Secured lenders seldom loan more than the auction value of the collateral.

    Secured credit, is an almost guaranteed way to rebuild your credit. Even with poor credit, a lender may advance your credit if you ca secure the credit with a lien against some valuable asset. Many creditors extend credit entirely on the strength of the pledged assets.

    Other credit considerations are either ignored or carry comparatively little weight in the credit decision.

    What can you use as a collateral to secure your debts and rebuild your credit? You may be appreciably wealthier than you think. Add the value of your various assets (property that you own) and subtract any existing mortgages or lies against those assets. The difference is your equity or net worth in the asset.

    This is what you have available to secure a loan. Do not overlook any asset:

    • Home

    • Investment real estate

    • Stocks, bonds, mutual funds,

    • Automobile

    • Boats, planes, recreational vehicles

    • Notes and mortgages due you

    • Art, jewelry, antiques

    • Pensions, IRAs, and Keoghs

    • Royalty income

    • Income from trusts

    You may have other assets to pledge. The point is that collateral gives you a borrowing power approximately equal to your equity in your assets. Regardless of your credit history, if you have collateral worth a solid $100,000, you should be able to borrow close to that amount.

    3. Character

    Creditors next consider your character. How important this is depends upon the type of credit, and who your creditors are. Asset based lenders rely chiefly on collateral, and they are less concerned with your character than are unsecured creditors who can only rely on your prior reliability for honoring your obligations.

    When creditors check your character, they basically look at how you satisfied your past obligations. Meaning they want to know:

    • How many credit defaults have you had?

    • What was the reason for the defaults?

    • How recent are they?

    • Do you own your own home?

    • If you rent, for how long have you rented the same apartment or house?

    • Do you have a checking account?

    • Do you have a savings account with regular deposits?

    • Do you have a payroll savings plan at work?

    • Do you have a telephone in your own name?

    • Do you have a criminal record?

    • Have you filed bankruptcy?

    Positive answers to these nine questions will often offset an otherwise negative credit report. Basically your credit character boils down to your credit history in the past. In the eyes of creditors, if your past credit character is good, there is no reason to believe why your future won't look promising.

    About The Author

    © Copyright. http://www.deleteuglycredit.com

    Omar M. Omar is the owner of http://www.deleteuglycredit.com. The website is dedicated to provide credit consumers with information about their credit right and how to dispute inaccurate information on their credit report. Omar M. Omar is also the author Of "The Credit Repair Bible" book.

    You have permission to publish this article electronically or in print, in your Newsletter, on your website, or in your E-Book, as long as the author's Resource Box is included with the article.

    omar@deleteuglycredit.com

    In The News:

    France's 40C heatwave 'potentially dangerous', forecasters warn
    Tue, 25 Jun 2019 10:38:00 +0100
    France is taking extra precautions ahead of a "potentially dangerous" heatwave that is set to hit much of Europe this week. 

    Trump threatens 'obliteration' if Iran attacks 'anything American'
    Tue, 25 Jun 2019 10:53:00 +0100
    Donald Trump has warned Iran that an attack on "anything American" will be met with "great and overwhelming force", with parts of the country facing "obliteration".

    'It was a fun life': YouTuber found dead after final video
    Tue, 25 Jun 2019 18:15:00 +0100
    The body of a popular YouTube personality has been found almost a week after he went missing.

    NYC helicopter crash pilot 'did not know where he was'
    Tue, 25 Jun 2019 20:29:00 +0100
    A pilot who died after his helicopter crashed into the roof of a New York City skyscraper in rain and fog "did not know where he was", according to a preliminary report into what happened.

    Cricket legend Brian Lara rushed to hospital after suffering chest pains
    Tue, 25 Jun 2019 13:21:00 +0100
    West Indies cricket legend Brian Lara has been taken to hospital in India after suffering chest pains.



  • tikatoshop.it

    Erfahrungen mit Pallhuber Wein
    Agen Bola SBOBET Terpercaya

    Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

    Credit Repair, How To

    Credit repair, is in a word, vital to reestablishing your... Read More

    Triple AAA in 30 Days

    Have you ever wonder about how to get good credit... Read More

    UPS Delivers the Goods, Your Identity

    Well now we add CitiGroup and UPS to the Identity... Read More

    Free Credit Report - Really

    2005 marks the year that consumers will be able to... Read More

    Credit Reports ? Why Your Credit Score is Important

    If you have never heard of a FICO score before,... Read More

    10 Dirty Tricks Credit Card Companies Play

    The credit card companies make billions each year in legitimate... Read More

    Why Is It important!

    Your credit is the most important thing you have other... Read More

    Credit Card Entrapment - The Secrets are Out

    Have you ever wondered why your credit card bill is... Read More

    How Your Credit Rating Affects You, and How to Check It

    You might not know it, but every time you take... Read More

    When You Are Eligible For A Free Credit Report

    By Federal law, you are entitled to one free credit... Read More

    The Exact Action To Take When You Find Errors In Your Credit Report

    There are times when you may be turned down for... Read More

    What You Need To Know About Credit Cards

    What is a credit card? A credit card is... Read More

    Your Guide On Choosing a Credit Card To Suit You

    Reach into your wallet or purse, pull out a card,... Read More

    What You Didnt Know About Your Credit Card Numbers

    Have you ever really looked at your credit card and... Read More

    Protect Yourself Against Identity Theft

    Identity theft is when someone uses, without permission, your personal... Read More

    Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

    About Search Entries:Every time a lender checks your credit history... Read More

    Simple Identity Theft Protection

    How many of you bank, shop, or transact other business... Read More

    Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!

    Here's a dirty secret, today's "non profit credit counselors" are... Read More

    Avoiding ID Theft and Credit Fraud

    Article excerpted from the new book, "How to Do Space... Read More

    Important Things to Know About Divorce and Credit

    Joint debts remain joint debts.Both spouses signed a legally binding... Read More

    19,178 Identity Theft Victims Per Day - Are You One Of Them?

    Identity theft statistics are shocking. And we are told that... Read More

    Making Sense of Credit Card Fees

    In addition to the APR (annual percentage rate) and the... Read More

    How To Survive In A Plastic World, Qualifying For Credit Card

    Let's face it, having credit is no longer a choice.... Read More

    Choosing The Credit Card That Is Right For You

    Credit cards represent an important part of our financial lives.... Read More

    Finding the Right Credit Card

    There are so many credit cards out there to choose... Read More