Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Why Finance Companies Benefit From High Risk Borrowers


Published on

Details on why and how finance companies benefit from high risk borrowers with credit problems and low credit scores. Learn which illegal tactics your creditors are using to purposely lower your credit scores and which easy steps you can take to prevent them from damaging your credit. Every item on your credit report must be reporting 100% accurately, must be verifiable, and reporting within the statue of limitations or it must be removed. This presentation gives you an enormous amount of helpful tips to improve your credit and increase your credit scores.

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Why Finance Companies Benefit From High Risk Borrowers

  1. 1. Why Finance Companies Benefit From High Risk Borrowers Leaf Credit Solutions
  2. 2. What is credit score and credit risk? Your credit score is a 3 digit number that lenders, employers, Insurance companies use to gauge how much of a risk that you are
  3. 3. Your credit score is used to determine if you will pay back a loan on time, be a responsible employee, or be a high risk to an insurance company.
  4. 4. The lower the credit score, the higher the risk The higher the credit score, the lower the risk
  5. 5. How do creditors make money from loans? The extra interest is where the lender makes their profit from the loan
  6. 6. The profits are only made when you go late and now you become liable for a higher interest rate. On a zero percent interest loan, the lender stands to make no profit
  7. 7. Studies show that credit card companies make 3 times more money from sub prime borrowers than prime borrowers
  8. 8. The Fed recently pointed out that credit card earnings from banks have been consistently higher than all other bank activities.
  9. 9. The majority of credit card companies profits are made from the interest charged on outstanding balances.
  10. 10. The lower your credit score is, the more money a lender will make off you through higher down payments and higher rates which ultimately cost you more money.
  11. 11. Yes, not only do they prefer them, but they go out of their way to ensure that most people have a low credit score so that they can charge higher fees. Do lenders prefer people that are high risk?
  12. 12. Many creditors make minor negative adjustments to the information that they report to the credit bureaus about you to ensure that your credit is negatively impacted, so that they can adjust your rate and fees.
  13. 13. One common way is that they change the date of last activity to a more recent date so that the negative account will report to your credit longer than the statue of limitation How do companies alter the information that reports to your credit report?
  14. 14. Another common scheme that creditors use is to report the same account multiple times so that it has more of a negative impact to your credit.
  15. 15. Although the system should be fair, unfortunately that’s not the reality. These are just a few of the tactics that are used by unethical lending companies to hurt your credit and lower your scores.
  16. 16. You need to directly challenge the creditors that are reporting negative information to your credit
  17. 17. Download a Free copy of the E-book Get your copy of the book at