| Dry
Credit |
|
what is it?
the need for it
terminology
comparing
wet and dry
contact
us |
| Terminology used in
relation to
dry credit: bank collateral or security Terms that is misused by banks because what they say they accept as collateral in fact they do not accept, even though they add it to the credit application. As far as Dry Credit is concerned, collateral need not be in the name of the applicant so long as the owner (the third party) of that assett gives consent for it's usage as collateral and allows the assignment thereof. Dry Credit A state or form of personal or corporate credit entitlement derived soley by securable assets, and to which the borrowee, lendee, creditee, mortgagee or financee does not reveal, nor is required to reveal any personal details, (or corporate business dealings if a corporation), other than his name, address and citizenship, and details pertaining to the asset(s) that is/are used for the credit. Any financial or personal information other than the assett(s) that are used to secure the credit is 100% discounted even if it is known, and is irrelevant and not used in any way in calculating the dry credit rating of, or in issuing the credit to, that person or corporation. Your Dry Credit Entitlement amount or the security that you (or a willing third party) own and is being used as collateral is not held by any credit reporting agency or financial institution, and in fact, such a holding would be fruitless because your rating is based only on assets that you wish to provide for that specific financing. For example, you may wish to place land as collateral for one loan but not for another. Dry Credit entitlement This replaces what credit reporting agencies call a credit rating or credit score. Dry Credit Entitlement is credit entitlement amount in which the creditee does not provide any personal information including age or location, but only enters information regarding the collateral. But it is more than that. it is the fact that YOU are in control in the sense that you tell the lender of he can lend to you or not, not the bank in control telling you that you must meet their criteria. The bank or lender is priveledgesd to be able to lend to you. collateral Collateral used to obtain Dry Credit and such collateral is lienable or assignable. If other than land (which cannot be moved) it is secured in a physical way such as kept in storage in such manner that the creditee cannot alter it's state or in any way have access to it during the financing period, for example segregated gold bullion holdings which are kept in storage in a certified storage facility, the rights of which are have been assigned to the financor (transferred at or before the time the financing is given). In the case of land it is land which has a lien placed on it. secured loans A term that is misused by banks and financial institutions. What they claim is a secured loan is in fact not secured loan. If it is secured by security, then nothing else is needed. If they need other assurances such as income, then the 'security' is not providing the security. wet credit A state or form or personal or corporate credit (based on a credit rating or credit score) that is unsecured (even though the financial institution may tell you that it is) and which is based on some or all of the following criteria: type of employment, duration of employment, past employment histrory, monthly income, monthly expenses, liabilities, debt, credit cards, RRSP's, RRIF's, (wet) credit history, insurance policies, bankruptsies, marital status, number and ages of children and dependants, civil and criminal convictions, other credit that has been extended in the past, trusts. wet credit rating That rating that is the standard of such reporting agencies as Equifax, and based on wet credit criteria. back to top of page |
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