credit risk: The 5 Cs of Credit
- 11/27/10 09:38 AM
When I started in real estate in 1988 it was illegal to have a numeric score associated with your credit report. We learned to get a general impression of the company, their leadership and their spending habits by reviewing their trade lines. How they used credit and the consistency of their re-payment. From this we generated a hypothesis of the risk associated with the borrower and made a credit decision. Since then it has become uncommon to even know what a tradeline is. Today the client is just a number and no amount of cajoling can change that - especially since … (4 comments)
When I started in real estate in 1988 it was illegal to have a numeric score associated with your credit report. We learned to get a general impression of the company, their leadership and their spending habits by reviewing their trade lines. How they used credit and the consistency of their re-payment. From this we generated a hypothesis of the risk associated with the borrower and made a credit decision.
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