The 4 C’s of Lending – 232 DSR

June 26, 2017

Without you the bank wouldn’t be in business.

1) Character – You actually knew the banker. Local lending.

2) Collateral – Car, house, 4 wheeler, tractor, etc.

3) Credit – Payment history. 3 X 5 cards at Sears when my wife was young.

4) Capacity (paycheck) – This is the real asset. The real collateral.

The real asset is you. No paycheck, no monthly payments. They’re not in the car business or the 4 wheeler business. They’re in the business of collecting interest payments from you. Selling the installment contract to someone else who collects the interest payments and getting paid a fee.

Bank doesn’t want empty houses they have to pay taxes/insurance/maintenance on. They want interest payments, your rent payment for the use of their money.

You know where to find me. Podcast page. email or voicemail.
Coaching is available.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved

Greg Whitaker

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Greg is a financial wellness educator, tireless ambassador for financial literacy, and the founder of Debt Shepherd.