Nobody downloaded yet

MEMO - Assignment Example

Comments (0) Cite this document
FICO Scores in Awarding Loans to Customers Internal Memo To: The New Banking Interns, Fidelity Trust Bank From: Loan Officer, Fidelity Trust Bank RE: Updates on using FICO scores to determine the customers to e granted loans Date: Oct 21, 2013. I am writing to give you updates on the role of FICO scores in determining whether the customers you serve at the bank can be granted loans…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Read TextPreview

Extract of sample

Download file to see previous pages FICO scores are reviewed by almost all lender agencies in America, before they arrive at credit decisions to offer their customers credit. For that reason, through the proper usage and incorporation of the scores, as a banker, you will be able to avoid customers with poor credit history, which will improve the financial performance of Fidelity bank. Overview of the main Fico Scores The FICO scores of customers will take into account, five main information categories that relate to the customer’s credit profile. When using FICO scores to determine the customers that can be offered loans, the chart given below displays the comparative weight offered to the different score areas. The 5 main areas featured in FICO scoring and their relative weight The review of the different ingredients of the FICO scores 1. Payment history The payment history of the customer contributes about 35 percent of their FICO score. The information reflects their information on different financial accounts and areas. The different accounts reflected through the information include Credit card worth and standing, for cards like MasterCard, Visa, Discover and American Express. The second accounts featured are retail accounts, where the customer’s financial operations reflect the credit collected from outlets where they do business – showing the credit cards used at departmental stores, and the credit history maintained. The third account reflected is installment loans, where regular reimbursements for loans like mortgages or car loans are reflected. The fourth account reflected through the payment history is finance company records. Additionally, collection items and public records are reflected, giving information on events like foreclosures, bankruptcies, wage attachments, lawsuits, judgment and liens. Lastly, this score area gives information on the accounts that don’t show late payments, and whose financial obligations are met as agreed upon. From the information captured about the different accounts and fields named before, you will use your judgment to verify whether the given customer has shown a history of repaying loans and whether their financial standing warrants the loan they are asking for. Therefore; based on the information captured, you will only offer credit to a customer with a favorable credit history and avoid those with poor payment history, because a poor history shows that they are more likely to give problems when repaying the credit. 2. The second area where you need to pay much attention is the field of the amounts owed. This information reflects about 30 percent of a customer’s FICO scores, which indicates their level of indebtedness. The areas reflected by this variable include the amounts owed for the different accounts held by the customer, the amounts apportioned to different account types, the balances from different account types, the proportion of the credit consumed through credit cards among other credit accounts and how much the customer is yet to pay, on different loan amounts. Through the review of this score area, as bankers you will determine the level of debt that the customer has collected, which can influence their ability and their pattern of loan repayment. For example, from the case of a customer who has used larger proportions of their ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“MEMO Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(MEMO Assignment Example | Topics and Well Written Essays - 1000 Words)
“MEMO Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
This is to show that the case is not a gross injustice and hence no need to do away with amendment 20 as a defense. The audience should be aware of what is contained in the
2 Pages(500 words)Essay
Critique memo
Page one, of the document, deals with identification of the parts of the laptop without dwelling on the specification. Computer specifications come in the second and third pages after giving the overview of the
1 Pages(250 words)Assignment
The author states that the major aim of contract manufacturing is to save costs, but goes ahead to illustrate that this is only achieved when certain principles of maintaining good
1 Pages(250 words)Essay
Individual memo
Other topics also include sociology of culture. This is the collection of symbolic codes used by the society. On the other hand, demography is a study of human population. It is also a general science, which may be applied to any kind of living population. These
1 Pages(250 words)Assignment
Olantunji manufacturing had earlier recommended Miller computing for provision of timely and efficient response. On further investigation to find
1 Pages(250 words)Assignment
Most recipients do not understand the sort hand expressions and view the act as unprofessional. The tone of the communication should be
1 Pages(250 words)Assignment
To do this, the antivirus runs the suspected software on a virtual machine hence monitoring the performance of the software in a controlled environment. If the software being observed performs any malware related activities, the user is
1 Pages(250 words)Assignment
Program Memo
The chosen program is one that aims at venturing into emergency evacuations and quarantine in the case of disastrous conditions. Reviewing the intended beneficiaries of the
1 Pages(250 words)Assignment
Write memo
It is as a result of the increase of cyber-attacks that Verizon Enterprise Solutions came up with Verizon Data Breach Investigation Report to provide solutions to cyber insecurity (“Verizon Enterprise Solutions” 1). The credibility of Verizon Enterprise Solutions
1 Pages(250 words)Assignment
Recommendation Memo
She narrated her story as an introvert when she was a kid. Books were her close friend, and when she went to parties, she felt as if she was in a wrong place. She condemns the current education system and workplace as they favor only extroverts. One is
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Assignment on topic MEMO for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us