Sentences with phrase «risk of lending you money»

A credit score is a number that third parties, especially lenders, use to assess the risk of lending you money.

The success of the pending bond sale and the yields investors are willing to accept in return for the taking on the risk of lending their money to Puerto Rico will be very telling.

This is the primary reason that banks require cosigners for some borrowers — they don't want to take the risk of lending money to a specific borrower, so the cosigner's guarantee helps reduce that risk.

A lender needs to evaluate the risk of lending money to you.

On the flipside, the rates will be slightly higher because they are trying to compensate for the risk of lending you the money.

Money lending companies such as banks or credit card companies shall, therefore, go through your credit history when calculating your credit score to allow them to come up with the risk of lending money to you.

It uses a mathematical formula developed by the Fair Isaac Corporation, and was designed to help lending institutions and other credit companies determine the risk of lending money, or issuing credit to their potential customers.

Mortgage lenders often maintain these escrow accounts for borrowers to minimize the risk of lending money.

In exchange for their low threshold for eligibility — which increases the risk of lending money — the FHA requires that all borrowers pay a mortgage insurance premium (MIP) for the life of their loan.

FICO scoring has never been more important, as banks are now taking the risk of lending money a bit more seriously.

Your credit score is a three - digit number that is based on your credit history, and it helps creditors analyze the risks of lending you money.

«Lenders won't want to take the risk of lending money on assets that can't get insurance.»

Not exact matches

Whereas default risk is a natural disincentive to loose lending, from the banks» perspective, the risk of issuing mortgages is minimal, which helps to explain why they're willing to loan money at such low margins.

A surge in acquisitions by large Chinese companies in recent years has increased worries that several of them, which rely on borrowed money for their large purchases, could pose a risk to the banks that lend to them.

Third and finally, the traditional story misses the real function of private banks, which is to solve an information problem in the purest Hayekian senses. That is, banks are or should be specialists in risk assessment and risk taking. They should know their client, understand the local market and have their pulse on the broad economy. Arguably, if properly structured, they can and should do this better than other entities such as governments. In other words, the proper role of banks should be underwriting — lend money, hold the debt, and bear the risk. Which is a long - winded way of getting to the main point of this post.

The low incidence of shareholder lawsuits may cause insurers to ignore the risks of insuring the errors and omissions of corporate boards, and may encourage financial institutions to lend money to marginal borrowers that are bad credit risks.

From the lender's perspective, the higher interest rate on the jumbo loan is fair compensation for the added risk of lending you extra money.

But they would be on the lookout for one another: the moment no other bank is willing to lend to you, they run the risk of needing some of that money back, and having to be the one to admit it's not there anymore.

Banks such as Capital One or Wells Fargo do not lend money without charging interest to offset the time value of money and the default risk.

In addition to your credit report (s), they will most likely use a credit score, such as a FICO ® Score, in their evaluation of risk before lending their money to you.

It is always a better option to leave the risk with financial lending institutions, if you have any doubts whatsoever of paying back the money borrowed from those close to you.

You can spread out the money you lend over hundreds of people, meaning less risk for you.

In practise though, lenders aren't so keen on that scenario, they would rather have shareholders sharing the risk, and lending a less than 100 % proportion of the total of a companies finance means they are much more likely to get their money back if things go horribly wrong.

Essentially, with them taking a risk by lending you money, they are taking a risk of you not paying it back.

While they make steps to minimize the risks by verifying the ability of the borrower to repay the loan, they do grant loans to bad credit borrowers, as they make most money from sub-prime lending portfolios, since bad credit personal loans have higher interest rates and fees.

The purpose of currency swaps is to hedge against risk exposure associated with exchange rate fluctuations, ensure receipt of foreign monies, and to achieve better lending rates.

Additionally, if you don't repay the loan according to the agreed terms, then you risk damaging your relationship with the person lending the money, which may not make this type of loan worth it for your situation.

When the LTV is higher than 100 % it means that the lender is actually lending more money than the value of the property, thus incurring in a higher risk.

Many people lack the understanding that a credit score is a bank's way of determining if they can take a risk on lending someone money.

There is a lot of risks associated with lending money, and they want to make sure you are appropriate and will pay the money back in time.

Before lending you money, lenders want to know how big of a credit risk you are.

It's a way of calculating the risk associated with lending us money.

In these cases, the lending institution may require you to pay PMI because they are increasing their potential risk of loss if you should go into default; they are lending you more money so that you may purchase the home.

To them, your credit score is an indicator of how much of a financial risk they're taking in lending money to you.

If your credit report reveals a poor history of repayment, they may consider you a high credit risk and not lend you money.

Lenders are in the business of lending money and minimize their exposure to risk.

Longer maturity securities tend to pay more yield to compensate for the extra risks involved in lending money for longer periods of time.

The real yield is comprised of the compensation that an investor requires for the risk assumed in lending his money, the investor's estimate of prospective inflation and some compensation for the risk of being wrong.

Thus, a mortgage lender will charge a person with poor or bad credit a higher interest rate to refinance because the lender is taking more of a risk by lending that person money.

Your credit score, the number that lenders use to estimate the risk of extending you credit or lending you money, is a key factor in determining whether you will be approved for a mortgage.

Before you commit your money to a P2P lending loan make sure you read the PDS and understand the significant features, benefits, costs and risks of the investment.

Lenders who do business over the Internet can typically approve a greater number of applicants for the loan money that they need because they have more working capital and are often willing to absorb greater instances of risk than a traditional lending institution, bank, or credit union will.

As our use of credit increases, lenders are looking for more tools to help them continue to lend more money, while reducing their overall risk.

On the other end of the spectrum a low credit score tells a lender you could be doing better with your credit and they see you as a bigger risk when lending you money or giving you credit (like on a credit card account).

They want to know how much of a risk it will be to lend you money.

Lenders can ask for the document to examine the amount of risk they would be taking while lending money to you.

Contagion fears, which have been exacerbated by recent negative ratings action by Moody's on France's top three banks — BNP Paribas, Credit Agricole and Societe Generale — has seen a sharp drop of S18 billion in short - term lending to European banks since May as money market accounts and dealer balance sheets are becoming more risk averse, according to Barclays research.

Friend and family lending mixes personal relationships with money matters, which always carries its own unique type of risk.

The VA guarantees a portion of your loan to the lender to help mitigate some of the risk the lender assumes when lending money.

Generally most people will be able to get approved a Loan and this is one of the reasons why Payday Lenders charge higher interest rates along with the risks they take for lending money to individuals that may have a bad credit history.