Customizing Software to Hasten Your Business Practice

Posted on November 20, 2009
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Several credit card companies have gone far beyond your credit score to decide whether you are a good candidate to lend money to. How much your mortgage is worth, the neighborhood you live in as well as where you go shopping are all factors that credit card companies look to before they decide to give you credit. Some people feel creditors are getting a little personal when it comes to how much credit should be given simply based on spending habits. But financial institutions feel they have every right to know if people are high risk or not.

There has to be a business rules engine process that occurs before banks or any other credit house will lend to a potential buyer. Prescreening is a way for banks or credit lenders to feel secure about trusting you that you will pay back the money. Oftentimes, a bank or a creditor will ask a consumer reporting company for a list of people in a companys database that fall into category of a certain credit score. Then they may even dig a little deeper. It is a companies right to do some deep digging in order to feel comfortable trusting a person before they loan out money to just anyone.

Are Some Credit Companies Prescreening or Are They Judgmental? A bank or credit card company may put you through account origination before you are approved for a line of credit. Sometimes this means reports performed without the your knowledge. Meaning, where and how you spend your money could be considered a risk.

What Other Credit Companies Dig Into Besides credit score Your mortgage payment Stores you shop at Car you own Other credit lines Geography-where you live

Creditworthiness should be the number one factor a bank or credit card company should offer a person credit; meaning, the overall level of debt relative to the card members financial resources. But in actuality, there is a no-go list of places that raise red flags with certain creditors that will affect the amount of money that they are willing to loan. Some of the red flags include:

Marriage counselors Tire retreading and repair shops bars and nightclubs pawnshops massage parlors

In these economic times, banks and creditors are more cautious than ever. Besides limiting the amount of credit they give out, they are also taking some credit away from current card holders. It used to be that the more homes one had, the safer they were to loan to, now the more homes, cars and other credit cards you have could actually go against you- not for you.

About the author: Jason Ausmus is a web content producer for Innuity. For more information regarding business rules engine or account origination go to Zoot

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