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DUO EXPERT

ATTY. LOVELY LUVLESS

CREDIT EXPERT

Ms. KAREN AGUILA PROFESSOR

UNIVERSITY OF SANTO TOMAS

HOST

ANG NAGREREKLAMO

INIREREKLAMO

PERSONAL CREDIT
- are required of a financial institution providing the person for household expenses or consumption.

TYPES OF PERSONAL CREDIT

SECURED PERSONAL LOAN

UNSECURED PERSONAL LOAN

SECURED PERSONAL LOAN

UNSECURED PERSONAL LOAN

SECURED OR UNSECURED BASIS:

Home Equity Personal Loan Home Equity Line of Credit Short Term Personal Loan Fast Cash Advance Loan No Credit Personal Loan Second Chance Personal Loan

What is your credit history?

Your credit history is all the IOUs you have made over time and whether you have repaid the IOUs.

What is a credit report?

This is a LIST, a paper report, of your credit history. It shows your address, social security #, birth date, etc. It shows all the companies you have borrowed from. All the companies that have given you IOUs. It shows when you made your payments on time and when you did not.

CREDIT SCORE

Number given to you by the credit reporting agencies. Everyone over the age of 18 has a credit score. If you have never had credit, then you have a score of ZERO.

PERSONAL CREDIT RATING

- Is a statistical method to determine the likelihood of an individual

paying back the money he/she borrowed.

I - Installment Credit R - Revolving Credit o IMPORTANCE OF CREDIT RATING

RATING R0 or I0 R1 or I1

DESCRIPTION You are new to the credit world, and you have an insufficient credit history. You pay your credit back in 1 month.

R2 or I2
R3 or I3

You pay your credit back in 2 months.

You pay your credit in 3 months.

R4 or I4
R5 or I5 R7 or I7 R8 or I8 R9 or I9

You pay your credit in 4 months.

You have not repaid in four months, but you are not a 9 yet. Your debt payments are made under consolidation. Debt was cleared by selling the item (repossession). Your officially have bad debt (default), which usually means it is uncollectible.

GOOD CREDIT or BAD CREDIT

o Good credit is when you payback an IOU ( I OWE YOU )on time. o Bad credit is when you do not.

GOOD CREDIT PERSONAL LOAN

UNSECURED PERSONAL LOANS SECURED PERSONAL LOANS
LINE OF CREDIT WITH GOOD CREDIT GOOD CREDIT PAYDAY LOANS

BAD CREDIT PERSONAL LOANS

WAYS: HOME EQUITY LOANS CASH ADVANCE OR PAYDAY LOANS

TITLE LOANS
COMMUNITY LOANS

TOP 3 REASONS
1. DEBT CONSOLIDATION 2. PURCHASING A VEHICLE
3. HOME IMPROVEMENTS

SOURCES OF CREDIT INFORMATION

oBuyer
To initiate a credit investigation, always begin with the buyer. A tactful way of soliciting this information is for the sellers business to initiate an exchange of antecedent and financial information between the seller and the buyer.

oDirect Correspondence
Direct correspondence is the most common basis for contact with all buyers. Opening accounts presents an excellent opportunity to set a tone that will keep a buyer providing credit information.

o Request for Financial Statement o Telephone Contacts

Telephone contacts can be used to supplement financial information on statements submitted to the company or to a credit agency, to obtain references, to bring financial information up to date, and to verify reported contracts.

oBank Information
An excellent source of credit information is a sellers bank. An inquiry directed through this source stands a better chance of obtaining useful information than one directed to a buyers bank.

Other Sources:
Business Magazines

Newspaper

Trade Journals

Government Business Reports

CREDIT INVESTIGATION
- Is known as the borrowers identity check. - Is a process used by credit institutions.

CREDIT EVALUATION
- is done by the financial organizations to confirm the loan repayment ability of the prospective borrowers and the chances of default.

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Tips to improve a high credit score:

Make loan payments on time and for the correct amount. Avoid overextending your credit. Unconsolidated credit cards that arrived by mail may be tempting to use, but they may be flexible. Never be ignore overdue bills. If you encounter any problems repaying your debt, call your creditor to make repayment arrangements. If you tell them you are having difficulty, they may be flexible, Be aware of what type of credit you have. Credit from financing companies can negatively affect your score. Keep your outstanding debt as low as you can. Continually extending you credit close to your limit is viewed poorly. Limit your number of credit applications. When your credit report looked at, or hit, it is viewed as a bad thing. Not all of this are viewed negatively (such as those for monitoring of accounts, or prescreens), but most are. Credit is not built overnight. It's better to provide creditors with a longer historical time frame to review: a longer history of good credits favored over a shorter period of good history.

WE WOULD LIKE TO THANK:

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