Sentences with phrase «take a risk on lending»

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.

Not exact matches

But if you have recently been denied credit, it's an indication the lending system sees you as damaged goods that they are unwilling to take a credit risk on.

Taking on the risk of lending to a private company can typically help a firm's chances in underwriting an eventual IPO.

Possible reasons for the increased lending activity include lower levels of regulation at smaller banks than at their larger counterparts, recent movement of lending staffers from large banks to small banks and an increased willingness of smaller banks to take on credit and interest risk, the report says.

Because they haven't had the means to set up a program, lend the funds, take on the additional risk and comply with consumer credit laws.

Because low - risk investments return roughly 20 % on average in a country with 20 % nominal GDP growth, financial repression means that the benefits of growth are unfairly distributed between savers (who get just the deposit rate, say 3 %), banks, who get the spread between the lending and the deposit rate (say 3.5 %) and the borrower, who gets everything else (13.5 % in this case, assuming he takes little risk — even more if he takes risk).

Amongst other things, banks and other lenders need to consider the risks they are taking on, not just from individual loans, but from the collective effects of lending decisions on the system as a whole.

Finding a lending institution that is willing to take the risk on a new business will be difficult if not impossible in the current economy.

The Hour Between Dog and Wolf: Risk Taking, Gut Feelings, and the Biology of Boom and Bust By John Coates Most of us would blame the 2008 financial collapse on the subprime lending meltdown.

«Our focus is on the fair - lending risks created by policies that allow dealers the discretion to mark up each consumer's buy rate after the lender has underwritten the consumer's loan application and has taken credit scores into account.»

Whether it's library lending, free sampling, or book series discounting, readers will take a risk on a book purchase if they know they're going to enjoy it.

One of the key problems that has arisen under US lending and subscription models is that publishers who are willing to take the risk on an experimental lending model have rightly been cautious about participating, often resorting to testing the waters with their backlist or a few midlist titles.

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.

The extra yield is compensation for taking on credit risk when you lend your money to the bond issuer.

The more money you can put down, the risk the bank takes on when they lend you money.

The truth is many of the private lenders who are denying VA Streamline loans are actually interpreting the rules of VA lending incorrectly because they are unwilling to take the risk on the loan, which is wrong.

Therefore, most lenders will not take a higher risk by lending to someone with stains on the credit report such as defaults or bankruptcies.

With bad credit, getting a personal loan can prove to be quite difficult because banks don't want to take on too much risk when lending to someone who has a bad history with borrowing.

So, if your score is in this range, you will pay higher interest rates to lenders to compensate them for the risk they take on when lending to those with lower credit scores.

A better credit score also means a better interest rate since the bank is taking on less risk by lending to you.

Should a consumer have a low credit score, the financial institution may not lend to him or it may charge a higher interest rate as compensation for the extra risk in taking the person on as a customer.

Based on these factors, the three major credit bureaus or rating agencies (Equifax, Experian and TransUnion) will assign us a score that represents the presumed risk a creditor is taking on when they decide to lend us money.

If traditional mortgage lending won't meet your needs, there's a decent chance that one of those «crazy» portfolio lenders is willing to take a chance on you — if the risk is reasonable and the transaction makes sense.

If you borrow enough, eventually the people who lend you money are taking on more risk than you are.

Because the risk is higher for lending companies to take a chance on subprime borrowers, they are charged higher interest rates for the privilege of getting a loan.

Interest is what the lender charges each year to account for the money they've lent out and the risk they are taking on.

Some lenders have become increasingly reticent to take on more risk by lending to people of dubious credit worthiness.

The collateral you use balances the risk lenders take - on when lending to you.

Take on additional credit risk, like subprime lending inside the life companies through securities lending.

Typically, wide corporate credit spreads indicate a riskier lending environment, as bondholders generally will only take on a greater risk of default in exchange for a greater yield.

The conservative lending principles of most banks prevent them from taking on the higher risk of lending to a company without a track record.

The reason DIP lenders get a super priority is because they take on an enormous risk by lending to an insolvent company that has already given a security interest in all its present and after acquired assets.

If you have a low credit score, a company might think they are taking on a greater risk to insure you or lend money to you.

So many variables, but lets focus on one, why would you take on more risk when the bank is willing to lend to you at historically low rates (at the moment) for an extended period of time.

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

If you put less than 20 percent down on a house, a lender will require private mortgage insurance in order to protect the financial risk they are taking in lending money to you.