Credit Scoring and Its Impact Essay Example | Topics and Well Written Essays - 4500 words

Credit Scoring and Its Impact - Essay Example It has an important influence on the interest rate incorporated to the borrowed money. With the significance of credit score, knowing it enables an individual to question the accuracy of the score, and as a result, negotiates the best rates with lenders. A credit score is purchased separately and is not a part of a consumer credit report. One may purchase a credit score from a consumer credit reporting agency, who can charge him/her with a reasonable fee.4 Credit scores are used other than determining whether a person will default on a loan or make late payments. Low credit scores are used by usurers in order to identify individuals whom they believe are likely to make claims on their insurance policies. An accurate credit score can enable interest rates be charged on loans and can make a difference on the availability and cost of insurance.5 Mathematics models are used in calculating credit score, which analyzes the creditworthiness of a person. The amount and types of debt that a person owes are considered by the models. The person's repayment history will then be analyzed alongside thousands of other consumers in the credit store. Important factors that determine a consumer's credit score are his/her previous payment behavior, the amount of money he/she owes, the length of time that he/she has held outstanding credit, the type of credit he/she uses, how much credit is available to him/her, and whether there are inquiries from prospective lenders in his/her file.6 The amount of available credit that a consumer is using is one of the most important factors in his credit score. When credit card companies do not report the credit limits on a consumer's account, the consumer's credit scores can be lower tan they should be. This is because most credit scoring systems substitute the highest balance for the missing credit lim it. Since it will appear that he is using all of his available credit, the borrower's credit score will become lower. Thus, it is important that consumers deal only with credit card companies that report credit limits on their accounts.7 Credit scores have varying meaning. The higher the score, the better the credit rating. Generally, a credit score can vary from 300-850, in which most scores fall within the range of 600 and 700. A sub-prime loan, which is a boundary between a standard loan and a higher cost loan, is generally tantamount to a credit score of 620. An easier time to obtain credit and a likewise ability to obtain it on better terms and at a lower cost is the implication of a higher credit score.8 The credit bureau and a model developer need to validate a model that will be utilized for credit scoring. Developers often perform additional validations on independent samples before releasing a model, in order to be assured of the model's predictive capability.9 Pincetich, et al10 suggests that in order that a credit bureau score may be used effectively, it is important that accounts are analyzed to determine how the score relates to a specific situation, such as delinquency or bankruptcy. Although the scoring logarithm remains the same, the performance related to each score may possibly vary according to user. Hence, a

Informational Interview Assignement Assignment Example | Topics and Well Written Essays - 1000 words

Informational Interview Assignement - Assignment Example I went ahead and gave him a called and asked him for a one on one interview where he delightedly invited me to his home office for the interview. During the interview, I learnt many things regarding how a studio runs, its clients, its services and even the challenges the studios face. He also enlightened me on how to deal with challenges the studio faces. With such important and useful knowledge, I can easily solve problems in a studio and even come up with very important projects, which can improve service delivery and the image of a studio. This experience also gave me a chance to know how to go about with my area of specialization which is 3d modeling and to make it a huge success. I also got to learn the importance of teamwork in this field of work and the importance of working with other people as you get to share ideas and solve problems easily and efficiently. Summary of the interview Upon graduation, he became an Art Director for a political consulting company, designing grap hical looks for various senatorial, gubernatorial, and presidential campaigns. This is the first job which he landed on after completing his university education. In the university he trained as a photographer at Arizona State University and in fact, he wheeled free office space out school administrators and at a point used his student union digs to design a design firm before his graduation in1975. This is one of his great achievement while was still in the university. This required a lot of determination and sacrifice in order to accomplish it. His determination, hard work, and passion for design are the ones that really his dreams come true. Without these qualities Mr.Jon Ridgway could not be where he is today. The idea of applying print graphic design to broadcast environment, from promotional spots to the studio’s surroundings also helped him a lot. At that time, he was a graphic designer at a television station where he worked with journalists and other people in the st udio. It is at this time that he contributed to the launch of the successful show, Entertainment Tonight. This show became a huge success and it attracted many viewers in the nation. When it comes to skills, Mr.Ridgway has good communication skills, which has really helped him in relating with his colleagues, clients of Novocom and the general public. He also has extensive creative talent in photography and high interest in graphic design. He is also very skillful in doing graphic design work which is his area of specialization and interest. He keeps his skills current by engaging himself not only in office work but also in fieldwork to explore and use his skills. He also works with his juniors in many projects and he gives them his ideas. This makes his skills updated and he also gains from them in one way or another and his skills are in use. By doing this he also passes his skills to his juniors whom he works with and this enables them to learn from him and also emulate him. He a lso argues that creativity, self-reliance, and consistency are the most crucial values in this line of work. Without this values then it is very difficult for one to become successful in this field of work. When it comes to attitude, then one should have positive mind and believe in what he or she is working on. What he likes most is his work, his family and he dislikes the things that