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Further
Reading ...
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Integrity in Management - Arthur Cooper
Integrity in Management By Arthur Cooper (c) Copyright 2003 If you want to motivate your team you must demonstrate integrity. There is no alternative. You may be able to get by without it for a while. You may be able to get temporary results...
How To Sell Anything To Your Prospect List On The Internet - Eo Lim
Do you like fishing? I'm going to tell you a fisherman's secret. Every time a fisherman went to a secluded river or uncharted sea, he knew what kind of bait to throw in. If he wasn't familiar with the hunting ground, he always did scuba diving...
THE UNIQUE "TOUCH OF YOU!" (Being A Positive Influence In Your World) - Lee Wise
THE UNIQUE "TOUCH OF YOU!" (Being A Positive Influence In Your World) ©Lee Wise 2002 I was in front of the computer at home. Nothing new for me! I heard a few voices and the dog barking. That small dog "yap yap" that triggers not nice...
NEGOTIATING TACTICS - HOW TO STRIKE A NEGOTIABLE OPENING SHOT - Sunny Tan
There is no right or wrong to fire up your opening negotiation… There may be a lot of people who are uncertain about the right way to start off a fruitful negotiation with their counterparts. They tend to think or behave as though there is really a...
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Like It Or Not, You Have A Score To Settle! (Part 1 Of 2 On Credit Scoring)
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Written By:
Www.creditandyou.com
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Just when most people finish with school and can stop worrying about test scores, there’s a new kind of scoring that enters the picture. It’s called credit scoring. And, its impact on your financial future can mean more to you than a college degree.
Why It’s So Important:
Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards and auto loans. More recently, scoring has been used to help creditors evaluate your ability to repay home mortgage loans.
Precisely what is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts is collected from credit applications and your credit report.
Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A scoring system awards points for each factor that helps predict who is most likely to repay a debt. Total number of points helps predict how creditworthy you are; how likely it is that you will repay a loan and make payments when due.
Why is credit scoring used?
Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applications objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.
To develop a model, a creditor selects a random sample - continued below ...
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continued ...
of its customers (or a sample of similar customers if their sample is not large enough), and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk.
Each creditor may use its own scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.
How reliable is the credit scoring system?
Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, scoring systems must be based on a big enough sample. Remember that these systems generally very from creditor to creditor.
Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.
In fact, many creditors design their systems so that, in marginal cases, applicants whose scores are not high enough to pass easily, or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.
What happens if you are denied credit or don’t get the terms you want?
About the Author
For the answer to that crucial question and how to improve your credit score, be sure to read Part II of “Like It Or Not, You Have A Score To Settle.” At http://www.creditandyou.com/creditscoreexplained.html
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What Is The Best Deal For A Mortgage? - Helen March
Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home. For most of us, our house is the single most important and expensive purchase we ever make! We invest a lot of time and effort...
Behavioral Economics? What's That? - Steve Gillman
A new science sheds light on some of our most important decisions. Behavioral economics is the study of how and why people make money-related decisions. As a science it is relatively new, although some of its findings have been known...
Exposing Your Expertise - Philippa Gamse
Writing and leveraging articles is my most successful strategy for promoting my Website and my speaking and consulting services. Visitors to your site from targeted articles tend to be higher quality leads than those from search engines, and...
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