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Cmcp Ch 7 Questions And Answers With Verified Solutions (GRADED A+)
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Cmcp Ch 7 Questions And Answers With Verified Solutions (GRADED A+)
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Cmcp Ch 7 Questions And Answers WithVerified Solutions (GRADED A+)
Credit Evaluation - ANSWER✔✔refers to the process borrowers are subjected to
for them to be eligible for funding, or to pay for products within a specified
period.
Credit Evaluation - ANSWER✔✔• It involves collecting information from the
borrower, analyzing the information provided, and making a decision on whether
or not to approve the loan.
Credit Information - ANSWER✔✔• Information about a person's or company's
ability to pay debt, examined especially by banks before they decide to lend
money.
information
includes public information, your credit card, car loans, and mortgages. However,
it does not emphasize information such as race, gender, religion, sexual
orientation.
Public Information - ANSWER✔✔This includes items such as tax liens or court
judgments against the subject.
Personal Information - - ANSWER✔✔which includes name, past and present
addresses, social security number and of course, your employment history and
sources of income.
Gathering of Information - ANSWER✔✔In this step, lenders collect necessary
credit information that will help them in determining the creditworthiness of the
borrower.
Tax liens - ANSWER✔✔is the government's legal claim against your property
when you neglect or fail to pay a tax debt. The lien protects the government's
interest in all your property, including real estate, personal property and financial
assets.
, Court judgment -
o - ANSWER✔✔is a court order that is the decision in a lawsuit. If a judgment is
entered against you, a debt collector will have stronger tools, like garnishment, to
collect the debt.
Account History - ANSWER✔✔_______ may be referred to when a record of
transactions by an individual or organization.
▪ Whether you pay timely payments on your credit cards, mortgage, auto loans,
etc.
▪ It can also include your purchasing habit, how often you use credit in
supermarket to pay for groceries, your shopping behavior, irregular transactions
in your account, etc.
Inquiries by creditors - - ANSWER✔✔this includes all inquiries in your credit
history that occur when you apply for new credit.
Salesman's Reports - ANSWER✔✔The company's first contact with a new
customer is the ___. If all goes well, the _____ will have the most frequent
contacts with an established customer. It is, therefore, necessary that salesmen
should be trained to submit credit applications on all prospective and/or new
customers, and when necessary to obtain current financial statements. Most
firms and individuals are conditioned to the necessity of furnishing credit
information to support credit transaction.
Customer Supplied Information - ANSWER✔✔In the final analysis, the principals
of the company being investigated have many answers not obtainable in any
other quarter. Indeed, there is no better source of information about the
operation and financial condition of a business than the business itself. Therefore,
it is reasonable to expect that direct contact with a customer can provide the
credit man with available financial details, banks and trade references, and other
information of importance of the credit exposure, and the degree of the
cooperation which can be obtained from the customer.
Bank Information - ANSWER✔✔Banks are usually quite knowledgeable about
marginal companies. The larger banks in the metropolitan areas have files which
contain a wealth of information.
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