We’re an asset management company striving to become a leader in the distressed charged off debt market. Through innovation, new collection techniques and by meeting the requirements of regulators both state and federal MarCas Asset Management will become an industry leader by treating our debtors not as individuals with an obligation but clients in need of help to build a better future.

 

Together we all grow!

CREDIT SOLUTIONS

HOW TO BUILD GOOD CREDIT

When it comes to good credit the most important things to keep in mind is maintaining on time payments. When underwriters evaluate credit reports they utilize the 5 C’s of credit; Character, Condition, Collateral, Capital, and Capacity. We will be explaining each in order to give debtors valuable information.

Character:

Sometimes called credit history, the first C refers to a borrower's reputation or track record for repaying debts. This information appears on the borrower's credit reports. Generated by the three major credit bureaus – Experian, TransUnion and Equifax – credit reports contain detailed information about how much an applicant has borrowed in the past and whether he has repaid his loans on time. These reports also contain information on collection accounts, judgments, liens and bankruptcies, and they retain most information for seven years. The Fair Isaac Corporation (FICO) uses this information to create a credit score, a tool lenders use to get a quick snapshot of creditworthiness before looking at credit reports.

Capacity:


(DTI) ratio. In addition to examining income, lenders look at the length of time an applicant has been at his job and job stability. debt-to-income and assessing the borrower's recurring debtsCapacity measures a borrower's ability to repay a loan by comparing income against 

 

Capital:

Lenders also consider any capital the borrower puts toward a potential investment. A large contribution by the borrower decreases the chance of default. For example, borrowers who have a down payment for a home typically find it easier to get a mortgage. Even special mortgages designed to make home-ownership accessible to more people, such as loans guaranteed by the Federal Housing Authority (FHA) and the Veterans Administration (VA), require borrowers to put between 2 and 3.5% down on their homes. Down payments indicate the borrower's level of seriousness, which can make lenders more comfortable in extending credit.
 

Collateral

Collateral can help a borrower secure loans. It gives the lender the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes.

Conditions

The conditions of the loan, such as its interest rate and amount of principal, influence the lender's desire to finance the borrower. Conditions refer to how a borrower intends to use the money. For example, if a borrower applies for a car loan or a home improvement loan, a lender may be more likely to approve those loans because of their specific purpose, rather than a signature loan that could be used for anything.

 

Protecting your credit history:

Identity theft is one of America’s growing problems effecting millions. We feel a great way to protect yourself is to have an understanding of the resources available to help combat this growing problem. The Fair Trade Commission, offers valuable information for those effected by Identity theft. If you are facing an issue ask one of our Portfolio Managers for assistance.

Please access the following link to obtain information: https://www.ftc.gov

Experian provides this free resource to give consumers an easy way to access their own credit report and score. Consumers can access a variety of credit related topics such as how to read a credit report as well as why checking your credit report is important. Consumers can access this service every 30 days to see changes to their credit report.

 

Access your FREE CREDIT REPORT at https://www.freecreditreport.com.