Access over 20 million homework & study documents

Inter-office Memo

Content type
User Generated
Type
Essay
Rating
Showing Page:
1/4
Surname 1
Name:
Tutor:
Course:
Date:
INTEROFF I C E M E M O R A N DU M
TO: NEW INTERNS
FROM: BOB MARTINS-PROGRAM FACILITATOR
SUBJECT: TRAINING ON THE ROLE OF FICO SCORES AND HOW IT IS USED IN
GRANTING LOANS TO CUSTOMERS
DATE:
I would like to invite you to attend a new interns’ training program to be held at Louis
Leakey auditorium on February 15, 2014, from 9 a.m. to 4 p.m. The training will be on using the
FICO scores. Learning a new job and adjusting to a new organization can be challenging and
overwhelming sometimes. This program has been developed to help you feel more comfortable
in your new work environment. The program has been designed to be educative, entertaining,
and enriching.
A FICO score is a number which reflects how well or bad a customers credit is.it can
range from 300 to 850, with a higher score reflecting a better credit. Lenders use FICO to make
credit decisions concerning interest rates you get when you apply for a loan. The FICO score
shows the creditworthiness of a customer and us as an organization; we would like to give loans
to customers with high credit worthiness. When a customer has a good credit score they will
have an easier time qualifying for a loan. The customer will also pay a lower interest rate on the
loan which equates to making savings over the life of his loan.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/4
Surname 2
There are many customers who will inquire from you the importance of FICO score since
some of them are not well enlightened about this. Firstly, the FICO score is important when
making major purchases. The bigger the purchase the more important your credit scores. When
the customers score is close to 850 they get lower interest rates on car loans, mortgages, and
credit cards.in addition to this the FICO score avoids the customer many hassles.it is not only
lenders that ask for the FICO scores but also landlords. When you apply to rent or lease property
the landlord will ask for a credit report. A landlord will not be willing to rent a property to
someone who will not honor the rental terms of agreement. Insurance companies do also ask for
credit reports to determine the type of insurance user you will be. Employers do look at credit
reports before they extend any employment offer. Having a good credit is of essence in today’s
world.
There are several factors that are looked at in the calculation of a FICO score. The
payment history of the customer is an important factor. This gives the most weight in the
calculation of the score at 35% as it gives the records of the loan payment history of the
customer.it show how timely or otherwise the customer has been in repaying his loans it shows
the number of unpaid bills the customer has, bankruptcies, and any bill sent to collection. The
length of the payment history is another factor to consider that accounts for 15%. The longer the
customer has been using their credit responsibly, the better their FICO score will be.
The total amount the customer owes on all their lines of credit is a big factor that is
considered in calculating the FICO score. It makes 30% of the score. The type of credit
compared to the amount owed is considered in the calculation. The types of credit accounts the
customer holds like personal loans, student loans, and credit cards make 10% of their score.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/4

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 4 pages?
Access Now
Unformatted Attachment Preview
interoffice memorandum to: new interns from: bob martins-program facilitator subject: training on the role of FICO scores and HOW IT is used in granting loans to customers date: I would like to invite you to attend a new interns' training program to be held at Louis Leakey auditorium on February 15, 2014, from 9 a.m. to 4 p.m. The training will be on using the FICO scores. Learning a new job and adjusting to a new organization can be challenging and overwhelming sometimes. This program has been developed to help you feel more comfortable in your new work environment. The program has been designed to be educative, entertaining, and enriching. A FICO score is a number which reflects how well or bad a customer's credit is.it can range from 300 to 850, with a higher score reflecting a better credit. Lenders use FICO to make credit decisions concerning interest rates you get when you apply for a loan. The FICO score shows the creditworthiness of a customer and us as an organization; we would like to give loans to customers with high credit worthiness. When a customer has a good credit score they will have an easier time qualifying for a loan. The customer will also pay a lower inte ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Awesome! Made my life easier.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4