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FACETO

FACE

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 DUO EXPERT

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ATTY. LOVELY LUVLESSCREDIT EXPERT  

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Ms. KAREN AGUILA

PROFESSOR

UNIVERSITY OF SANTO TOMAS

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HOST

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ANG NAGREREKLAMO

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INIREREKLAMO

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PERSONALCREDIT 

- are required of a financial institution providing the person for

household expenses or consumption.

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TYPES OF PERSONAL CREDIT

SECURED PERSONAL LOAN

UNSECURED PERSONAL LOAN

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SECURED PERSONAL LOAN 

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UNSECURED

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SECURED OR UNSECURED BASIS:

Home Equity Personal Loan

Home Equity Line of Credit

Short Term Personal Loan

Fast Cash Advance Loan

No Credit Personal Loan Second Chance Personal Loan

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What is your credit history?

Your credit history is all the IOU’s you have made

over time and whether you have repaid the IOU’s.

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What is a credit report?

• This is a LIST, a paper report, of your credit history.

• It shows your address, social security #, birth date,

etc.• It shows all the companies you have borrowed from.

All the companies that have given you IOU’s. 

•

It shows when you made your payments on time andwhen you did not.

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PERSONAL CREDIT RATING

“I” - Installment Credit“R” - Revolving Credit

o IMPORTANCE OF CREDIT RATING

- Is a statistical method to determine the likelihood of an individual

paying back the money he/she borrowed.

RATING DESCRIPTION

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RATING DESCRIPTION

R0 or I0 You are new to the credit world, and you have

an insufficient credit history.

R1 or I1 You pay your credit back in 1 month.

R2 or I2 You pay your credit back in 2 months.

R3 or I3 You pay your credit in 3 months.

R4 or I4 You pay your credit in 4 months.

R5 or I5 You have not repaid in four months, but you

are not a “9” yet. 

R7 or I7 Your debt payments are made under

consolidation.

R8 or I8 Debt was cleared by selling the item

(repossession).

R9 or I9 Your officially have bad debt (default), whichusually means it is uncollectible.

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GOOD CREDIT or BAD CREDIT

o Good credit is when you payback an IOU ( I OWE

YOU )on time.

o Bad credit is when you do not.

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GOOD CREDIT PERSONAL LOAN

UNSECURED PERSONAL LOANS

SECURED PERSONAL LOANS

LINE OF CREDIT WITH GOOD CREDIT

GOOD CREDIT PAYDAY LOANS

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BAD CREDIT PERSONAL LOANS

WAYS:

HOME EQUITY LOANS

CASH ADVANCE OR PAYDAY LOANS

TITLE LOANS

COMMUNITY LOANS

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TOP 3 REASONS

1. DEBT CONSOLIDATION

2. PURCHASING A VEHICLE

3. HOME IMPROVEMENTS

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SOURCES OF

CREDIT

INFORMATION

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oBuyer

oDirect Correspondence

To initiate a credit investigation, always begin with the buyer. A tactful way

of soliciting this information is for the seller’s business to initiate an

exchange of antecedent and financial information between the seller and the

buyer.

Direct correspondence is the most common basis for contact with all

buyers. Opening accounts presents an excellent opportunity to set a

tone that will keep a buyer providing credit information.

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o Request for Financial Statement

o Telephone Contacts

oBank Information

Telephone contacts can be used to supplement financial information

on statements submitted to the company or to a credit agency, to

obtain references, to bring financial information up to date, and to

verify reported contracts.

An excellent source of credit information is a seller’s bank. An inquiry

directed through this source stands a better chance of obtaining useful

information than one directed to a buyer’s bank.

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Other Sources:

Newspaper

Business

Magazines

Trade

Journals

Government

Business

Reports

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CREDIT

INVESTIGATION- Is known as the borrower’s identity check. 

- Is a process used by credit institutions.

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CREDITEVALUATION

- is done by the financial organizations to confirm the loan repayment

ability of the prospective borrowers and the chances of default.

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TO

FACE

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Tips to improve a high credit score:

Make loan payments on time and for the correct amount.

Avoid overextending your credit. Unconsolidated credit cards that arrived bymail may be tempting to use, but they may be flexible.

Never be ignore overdue bills. If you encounter any problems repaying your

debt, call your creditor to make repayment arrangements. If you tell them you

are having difficulty, they may be flexible,

Be aware of what type of credit you have. Credit from financing companies can

negatively affect your score.

Keep your outstanding debt as low as you can. Continually extending you

credit close to your limit is viewed poorly.

Limit your number of credit applications. When your credit report looked at,

or “hit,” it is viewed as a bad thing. Not all of this are viewed negatively (such

as those for monitoring of accounts, or prescreens), but most are.

Credit is not built overnight. It's better to provide creditors with a longer

historical time frame to review: a longer history of good credits favored over a

shorter period of good history.

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WE WOULD LIKE TO THANK:

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