| Dry
Credit |
|
what is it?
the need for it
terminology
comparing
wet and dry
contact
us |
| great
number of potentially untapped
customer base The banks are presuming that (assuming monthly payments are required intead of a lump sum payoff at the end of the financing period) your only income source is your job and maybe some investment income. They may not know that you have an arrangement with other relatives or friends to pay collectively, and it is not the banks business to know what your plans are or how you get the money. This opens up much greater possibilities for borrowing and allows many more people to borrow who may not otherwise have been able to. By the wet credit system used by financial institutions, the following situations prohibit a person or corporations from borrowing or financing:
You can see how that the way things are now most loan, mortgage, credit, and financing applications are unfulfilled. By using dry credit many more people and corporations will be able to borrow money. An example of this is an extended family in which 3 siblings want their own house for their own families, but each family on their own can't meet the present WET credit requirements. The alternative is that they pool their incomes so that they are assured that a monthly payment can be met. They buy a large house and all 3 families live in that one house, then after it is payed (it's payed off much more quickly this way) the second family get's their house, then the third. This can be done even if all three siblings have bad credit and criminal records and civil judgements against them, and/or if their income is not as predictable. All they need is an acceptable asset to get the loan, and only one name need be on the loan application: the name of the person in whose name the asset is held. Also, someone can invest in real estate by buying a house, renting it out then using this rental income to pay back the loan. This is already being done but based on wet credit. If such was allowed to be done based on Dry Credit, then many more peoople can buy rental properties. Another potential use is where there is a medical emergency or condition which requires expensive treatment or surgery, and the client knows that they can pay back the loan, but needs the money now. Dry Credit can be a lifesaver. back to top of page |
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quality domains
listed for sale at: www.000000000000000000000000000000000000000000000000000000000000000.COM (a domain is a website address with or without a website) |