5.6 Credit Rating Case Study
5.6 Credit Rating
SCORE DESCRIPTION
300-550 (Poor credit) - Going to result in a rejection of credit every time
- Need to work hard to improve the score
- If make a payment on time, it will improve the score to be better.
- Approximately delinquent 75% of the time
550-620 (Subprime) - Will pay higher interest rate and penalty fees.
- Borrowers become delinquent 50%of the time.
620-680 (Acceptable) - If in the mid 600’s will get credit when apply for it, but still do not get the best interest rate.
- Over 620 consider as a less risky and it will be approved.
- In this range, the borrower expect as a prime rate.
- Delinquency rates in the range of 15% and 30%.
680-740 (Good credit) - Score around 700 consider as the threshold to ‘good’ …show more content…
The documents need to attached with the application form is land title, salary or personal income statement for 3 to 6 months, bank statement for 3 months, copy of letter offer from developer or sales and purchase or booking receipts, copy of individual title deed, latest EPF statement, latest EA form, letter of confirmation of employment and remuneration. If self-employed clients are required to provide additional documents which is auditor’s background information, latest taxes payment receipts, and 6 months latest audited financial statement, latest statement of commission issued by company, latest EPF statement, latest BE form, latest 6 months bank statement. Clients may also provide other sources of income, which is fixed deposit receipts, tenancy agreement or rental receipt and etc. Furthermore, documents needed if the property is for business used which property valuation report and business registration. Identical card nor passport is the most important for the …show more content…
The documents need to attach with the application for private limited company or SDN. Bhd are as followings, certified true copy of certification of incorporation, copy of memorandum and article of association, copy of form 24 and 49, copy of identical card for locals and passport for foreigners of director, shareholders and guarantors. If applicant is sole proprietorship and partnerships, client need to provide business license, business registration, copy of partnership deed, and identical card for each of proprietors, partners and guarantors. Besides that, latest 2 years audited account, 6 months business or company bank statement from other financial institutions, annual income of director, these are for financial and credit information used. Income evidence and income proxies documents needed for SME such as, latest 3 months’ salary slips, EPF statement, latest 6 months bank statement from other bank, bonus or allowance, rental income, FDI interest and pension. Another documents for credit card application is, certified true copy of identical card for director, expatriates valid work permit and employment confirmation letter. If applicants financing the property for SME, copy of sales and purchase agreement, copy of booking receipts and copy of valuation report are required for application. For financing of land and building
SCORE DESCRIPTION
300-550 (Poor credit) - Going to result in a rejection of credit every time
- Need to work hard to improve the score
- If make a payment on time, it will improve the score to be better.
- Approximately delinquent 75% of the time
550-620 (Subprime) - Will pay higher interest rate and penalty fees.
- Borrowers become delinquent 50%of the time.
620-680 (Acceptable) - If in the mid 600’s will get credit when apply for it, but still do not get the best interest rate.
- Over 620 consider as a less risky and it will be approved.
- In this range, the borrower expect as a prime rate.
- Delinquency rates in the range of 15% and 30%.
680-740 (Good credit) - Score around 700 consider as the threshold to ‘good’ …show more content…
The documents need to attached with the application form is land title, salary or personal income statement for 3 to 6 months, bank statement for 3 months, copy of letter offer from developer or sales and purchase or booking receipts, copy of individual title deed, latest EPF statement, latest EA form, letter of confirmation of employment and remuneration. If self-employed clients are required to provide additional documents which is auditor’s background information, latest taxes payment receipts, and 6 months latest audited financial statement, latest statement of commission issued by company, latest EPF statement, latest BE form, latest 6 months bank statement. Clients may also provide other sources of income, which is fixed deposit receipts, tenancy agreement or rental receipt and etc. Furthermore, documents needed if the property is for business used which property valuation report and business registration. Identical card nor passport is the most important for the …show more content…
The documents need to attach with the application for private limited company or SDN. Bhd are as followings, certified true copy of certification of incorporation, copy of memorandum and article of association, copy of form 24 and 49, copy of identical card for locals and passport for foreigners of director, shareholders and guarantors. If applicant is sole proprietorship and partnerships, client need to provide business license, business registration, copy of partnership deed, and identical card for each of proprietors, partners and guarantors. Besides that, latest 2 years audited account, 6 months business or company bank statement from other financial institutions, annual income of director, these are for financial and credit information used. Income evidence and income proxies documents needed for SME such as, latest 3 months’ salary slips, EPF statement, latest 6 months bank statement from other bank, bonus or allowance, rental income, FDI interest and pension. Another documents for credit card application is, certified true copy of identical card for director, expatriates valid work permit and employment confirmation letter. If applicants financing the property for SME, copy of sales and purchase agreement, copy of booking receipts and copy of valuation report are required for application. For financing of land and building