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 FIN625 ASSIGNMENT NO 1 SOLUTION

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PostSubject: FIN625 ASSIGNMENT NO 1 SOLUTION   Tue Nov 02, 2010 8:30 pm

IDEA SOLLUTION OF FIN625 ASSIGNMENT # 01


Q1) Credit score is considered one of the best measures for checking the credit standing for anybody. If one has poor credit score then what measures can be taken in order to improve credit score?


There are followings measures to improve credit scores

1) Make your payments on time
2) Not borrowing against lines
3) Budget income
4) Saving money
5) Don’t cancel credit card
6) Pay off large debts
7) don’t cancel credit cards
Cool Pay down debts

(Explain any 5 in above)


Q2) while granting loans to applicants, lending institutions first decides whether applicant has good credit worthiness.
What factors the lending institutions must consider before sanctioning loan?

Factors that must consider before sanctioning loans are

a) Employment


b) Source Of Income

c) Credit History

d) Stability

e) Purpose Of Taking The Loan


f) Documentation








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