WET CREDIT (or the standard way that banks operate)
1. All personal information goes into database of financial institutions and/or credit reporting agencies such as Equifax and the access to which is not properly controlled and can be misused.
2. Wrong information frequently get attached to profile. This costs the client time and money and aggravation.
3. The present WET credit system is too complicated with too many variations, and is not standard worldwide.
4. You have to earn a good rating or repair a damaged one. The burden of proof is for you to prove yourself to the bank, on THEIR terms, meeting THEIR requirements. You have to "sign your life away" to the lending institution.
5. There is no worldwide standard credit rating system used in all countries.
6. Is based on your personal present and past financial dealings including defaults, bankruptsies, debts, obligations, monthly expenditures, income from all sources, employment histrory, residential history. Previous criminal and civil court convictions.
DRY CREDIT
1. Your Dry Credit information is not held by any credit reporting aganecy or financial instiution.
2. No wrong information can be compiled by any third party in regards to your Dry Credit information because no profile is kept and no wrong information can be submitted clandestinely.
3. You do not have to earn a good credit rating or repair a damaged one. You do not need to prove yourself to the banks, and you do not need to bow to their terms or conditions for credit requirements. You do not need to "sign your life away" to the lending institution.
4. The DRY CREDIT evaluation system is simple and is standard worldwide.
5. No personal financial or (otherwise) is required except for your identification as to who you are and that you are a citizen of that country, and information pertaining to the collateral used.
6. The loan can be paid back in one lump sum at the end, not necessarily requiring monthly payments. This can be great for making delas such as real estate flipping.
collateral
Financial institutions is misleading by the terms "secured loans" (except in the case of secured credit cards which are secured by cash in the account) in that it is not secured as they say it is. For example, if you go to the bank and ask if you can borrow $10,000, they will ask you first if you are employed, what your income is, and monthly expenses. Then they will ask you to list your assets and liabilities. If you have land, they tell you that they want to use this as "collateral". But do they really use is as collateral?
If the financial institutions really accepted your land (or other asset) as collateral, then why do they need to know that you have a good job, regular monthly income and no outstanding debts? The reason is that the "security" is not security at all. If they are really using an asset for security to borrow cash, then that's all you would need to get a loan is just your land.
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