CREDIT AND DEBT

Credit Application Personal Information: Full name Address Phone number Email address Employment Information: Employer’s name Employer’s address Employer’s phone number Job title Number of years employed Financial Information: Current monthly income Monthly expenses Assets Liabilities Other Information: Social Security number Driver’s license number Number of dependents Credit history Reason for applying for credit Signatures: Applicant’s […]

Credit Quality Credit quality refers to the overall assessment of a borrower’s ability and willingness to repay a loan on time and in full. It is a measure of a borrower’s creditworthiness, which is determined by a variety of factors, including: Key Factors Affecting Credit Quality: Credit History: Past credit behavior, including payment history, debt-to-income […]

Margin Debt Margin debt is a type of loan that is secured by a margin account, which is a brokerage account that holds investments. When you borrow money to purchase investments on margin, you are essentially taking out a loan from your brokerage firm. How Margin Debt Works: Margin Requirements: Brokerages require investors to maintain […]

Notching is a process of creating a narrow groove or indentation in a surface for a variety of purposes. Uses: Joining: Notching is commonly used in joining timber beams and rafters together, known as mortise and tenon joints. Attachment: Notches can be used to attach brackets or other hardware to surfaces. Routing: Notching is used […]

Default Probability The default probability is a statistical measure that estimates the probability of a borrower defaulting on a loan. It is used in credit scoring models to assess the credit worthiness of an applicant. Calculation: The default probability is calculated using historical data on loan defaults. It is typically calculated as the number of […]

Definition: A credit inquiry is a request made by a lender to a credit reporting agency for information about a borrower’s credit history. This information is typically used to assess a borrower’s credit worthiness and credit capacity. Types of Credit Inquiries: Soft Inquiry: This is a inquiry initiated by the borrower themselves or by a […]