APPLYING FOR CREDIT WHAT DOES A LENDER NEED TO KNOW ABOUT YOUR CREDIT HISTORY TO EXTEND CREDIT? CHAPTER 6: PAGE 169 NAME TEACHER DATE NAME, TEACHER AND.

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Presentation transcript:

APPLYING FOR CREDIT WHAT DOES A LENDER NEED TO KNOW ABOUT YOUR CREDIT HISTORY TO EXTEND CREDIT? CHAPTER 6: PAGE 169 NAME TEACHER DATE NAME, TEACHER AND DATE1

2

3 THE FIVE C’S OF CREDIT: The five key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).borrowercreditcapacitycash flowserviceobligationcapital (net worth)collateralassetsdebtconditionsoveralleconomy

THE FIVE C’S OF CREDIT (COMPLETE A CONTENT SLIDE FOR EACH CREDIT POLICY) WHEN A LENDER… NAME, TEACHER AND DATE4

CHARACTER WILL YOU REPAY THE LOAN? TEXT OBJECT NAME, TEACHER AND DATE5

CREDIT RATING: PAGE 170 NAME, TEACHER AND DATE6

7 Information on the 3 National Credit Reporting Agencies or Credit Bureaus Who are the 3 credit agencies? The 3 national credit reporting agencies in the United States are Equifax, Experian, and Trans Union. Experian was formerly known as TRW. A fourth national credit reporting agency named Innovis exists, but does not currently seem to factor into decisions for denials of credit, insurance or employment. It is more in a development stage. Innovis

CREDIT AND EQUAL OPPORTUNITY PAGE 172 NAME, TEACHER AND DATE8

WHAT IF YOUR APPLICATION IS DENIED? PAGE 172 NAME, TEACHER AND DATE9

CREDIT APPLICATION INFORMATION: PAGE 172 NAME, TEACHER AND DATE10