Credit Investigation Flashcards
A procedure undertaken by a financial institution to vet a potential client’s ability to pay back a loan
Credit Investigation
Inquiry from existing credit records
Credit file verification
Inquiry against compilation of names of persons against whom collection cases have been filed by creditors
Court case verification
It is always conducted on borrower’s ________
personal name and known aliases and trade/ business name
The details and documents provided by the customers like ID Proof, address proof etc. have to be personally visited and verified to prevent fraudulent activities
Field Verification
Inspection of applicants residence address/ locality and verification with the nearest neighbors and store owners in the vicinity
Residence/ Neighborhood Verification
Verify the applicant’s and spouse’s correct name including their______
middle name, aliases, ages and citizenship
Verify the respective _______ address
provincial
Determine ________ descriptions
house
Determine if client owns a _____ and other _________
vehicle, household appliance
Determine the client’s general _______ and type of _____
living condition, neighborhood
Determine the number of ______, _____ and ______
children, age, school
Determine the ________ bracket of the applicant and the _______
bracket, spouse
Verification of information related to the applicant and related interest business
Business Verification
Confirm/ verify the ______ of ________ business
nature, subject’s
Check the business __________ including the ________ when it was ________
history, date, organized
Inquire from the ________ of the building if the client is holding business therein and _____ of the client
administrator, paying habits
Compare _____ information from the ____ of the business
financial, accountant
check the business ________
premises
Check if the _____ has branches/______
business, affiliates
gathering of additional or confirmation of information related to the applicant’s jobs
Employment Verification
Determine client’s employment _______
status
Determine _____ of stay with _____ employer
length, current
Confirm p_____
position
Confirm c_____
compensation
Confirm client’s __________ address
residence
character of the client and his paying habit thru creditors
Trade and Bank Verification
Applicant’s _______ maintained with _______
accounts, banks
Average _______ balance
daily
Present b_____
balance
Status of A______
Accounts
Bank’s ______ in dealing with ______
experience, applicant
is an estimate or opinion of value usually transmitted in writing of adequately described property as of specified date supported by presentation of analysis of factual and relevant date
Appraisal
Highest price estimated in terms of money which a property will bring if exposed for sale in the open market
Market Value
General consideration in the choice of collateral
Stability of value,
General purposes/ use, Liquidity/ stability
Types of collateral
Real Estate Mortgage
Chattel Mortgage
a loan for a manufactured home/ other movable piece of personal property
Chattel Mortgage
Movable property
Chattel
