Analyzing Liabilities

An applicant's liabilities regularly play a limiting role in the applicant's search for credit. The applicant's income establishes the maximum amount of credit that the consumer can carry; that applicant's liabilities chip away at that maximum. The current balances on certain liabilities may also harm the applicant's credit grade.

For example, an applicant's income may initially qualify him or her for a $200,000 loan. However, if the applicant has other major debts that require regular payments, the loan amount for which the applicant may qualify will decrease.

This article will review two areas of concern regarding the applicant's liabilities:

  1. Qualifying liabilities
  2. Types of liabilities
Secrets of the Credit Industry

Secrets of the Credit Industry

Legal strategies that credit bureaus, creditors and debt collectors do not want you to know! How to use consumer credit protection laws, without hiring a lawyer, and without going to court! At some point in your life, either you, or someone you know will need this information.

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