The Loan Underwriting Process

Installment Credit

A set payment each month, such as with a car payment

FICO Score

A score used to measures borrower's creditworthiness. A measure of borrower credit commonly used by creditors, including mortgage loan originators. The score, developed by Fair Isaac Corporation, based on applicants' credit history and how much they use credit. Expressed as a number between 300 and 850, the score determines not only whether the loan is approved, but also what types of terms are offered by the lender. All three national credit bureau ( Equifax, Experian and Transunion ) now report FICO scores.

Creditworthiness

Ability to repay a loan

Collateral

Assets or other securities that are considered when applying

Credit

Buy now , pay a later

Revolving Credit

Credit, such as credit card, with a limit that the borrower can access as needed

Subprime Interest Rate

Higher interest rates due to risky borrower

Capacity

Items considered when applying for credit regarding to pay ,such as income

Underwriting

The process of assessing a customer's eligibility for credit