Newbie
Posts: 27 
March 20th, 2007, 04:20 PM
I'm not sure if individual institutions rank or if they are done through reporting to credit rating services like Equifax https://www.econsumer.equifax.ca/ca/...s_llaanngg.jsp The rating goes from never missing a payment, along number of missed payments, to insolvency.
I'm not sure if individual institutions rank or if they are done through reporting to credit rating services like Equifax https://www.econsumer.equifax.ca/ca/...s_llaanngg.jsp The rating goes from never missing a payment, along number of missed payments, to insolvency.
March 20th, 2007, 08:10 PM
A credit report is part of an application, not the entire scoring mechanism. The industry has a number of areas built in to it's application that look at the five C's of credit. Credit history, character, capacity, collateral, and capital all factor in. Net worth, demographics, job/employment tenure, industry classification, debt servicing, credit history, history with the institution, flexibility to meet the obligation when unforeseen circumstances arise, type of security if any, risk vs return, any history perpetual debt (consolidations), and purpose of the funds will all impact the application; from interest rates to approval. Each factor is provided a scoring factor. The institutions change those factors regularly to meet their risk requirements. No one institution will have the same factors at any time. If one bank already has too much from their viewpoint invested in restaurants it will be extremely difficult to borrow funds for that purpose from them. If their loan portfolio is weak on collateral they might reduce their exposure by insisting in collateral for all general purpose loans. If they've been loose with credit history they might be seeking to tighten it up by tweaking the credit history factor. In other words, there is no way to nail down any precise numbers because they change within institutions and from bank to bank.
A credit report is part of an application, not the entire scoring mechanism. The industry has a number of areas built in to it's application that look at the five C's of credit. Credit history, character, capacity, collateral, and capital all factor in. Net worth, demographics, job/employment tenure, industry classification, debt servicing, credit history, history with the institution, flexibility to meet the obligation when unforeseen circumstances arise, type of security if any, risk vs return, any history perpetual debt (consolidations), and purpose of the funds will all impact the application; from interest rates to approval. Each factor is provided a scoring factor. The institutions change those factors regularly to meet their risk requirements. No one institution will have the same factors at any time. If one bank already has too much from their viewpoint invested in restaurants it will be extremely difficult to borrow funds for that purpose from them. If their loan portfolio is weak on collateral they might reduce their exposure by insisting in collateral for all general purpose loans. If they've been loose with credit history they might be seeking to tighten it up by tweaking the credit history factor. In other words, there is no way to nail down any precise numbers because they change within institutions and from bank to bank.
