Explore BrainMass
Share

Explore BrainMass

    credit evaluation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Need help putting together a 2 page paper about how credit is evaluated and explain the criteria that is used to evaluate the creditworthiness of an individual. How might this information help a person build good credit?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:32 pm ad1c9bdddf
    https://brainmass.com/economics/banking/credit-evaluation-223541

    Solution Preview

    Need help putting together a 2 page paper about how credit is evaluated and explain the criteria that are used to evaluate the creditworthiness of an individual. How might this information help a person build good credit?

    Credit is evaluated by looking at different credit score that are calculated. These scores are mainly calculated by ascertaining if your bill are paid on time, the length of credit history you have. In other words a trail of payments that you have made in the past is examined. Finally, your credit rating score is calculated.
    There are some key criteria that are used for calculating the creditworthiness of an individual. The criteria that are commonly used for calculating credit scores are the payment amount the person owes, the payment history of the person, the types of credit used by the person, new credit that the person has and the length of the person's credit history.
    Let us explain these criteria in some detail. First, the type and the number of accounts the person has including mortgage, installment payment or long term loan. Usually a ...

    Solution Summary

    This answer provides you an excellent discussion on credit evaluation

    $2.19