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| Management of your credit is essential to building wealth! |
1. Credit
- What is your credit score?
- How well do you manage the credit that is advanced to you?
- Do you make your minimum payments on time?
- Do you remain under 35% on your revolving credit trade line balances?
- Do you have accounts in collections?
2. Capacity
- Your ability to repay loans
- The most critical of the 5 C’s
- Screening through application of debt service ratios
- Careful review of your payment history on existing credit relationship
3. Collateral
- The guarantee i.e. the vehicle, the property
- The value, location, characteristics of the property
4. Character
- The general impression of how trustworthy you are to repay loans
- Your length of employment by component of borrowing character
5. Capital
- The amount of money that you have invested in the property
