Embedded Files
"The Three C's of Credit"
- Factors that affect your credit approvals besides credit scores.
Character:
paying bills on time
how long lived at address
length of credit history
employment length
Capital:
debt amount
savings account
collateral
investments
Capacity:
Salary
Expenses
Monthly Payments
Dependents
Another factor for loan approvals is the debt to income ratio (%).
How to calculate Debt-to-income ratio (%) ?
-This is used by lenders/borrowers for loan approvals.
Sum (+) up all monthly expenses and divide (/) by the monthly income. The calculation is expressed in (%):
Example:
$700 monthly expenses ÷ $2,100 income = 33%
35% - Good.
36 - 49% - Can do better.
50% or more - Need to take measures.
Google Sites
Report abuse