Week_2_Com_156

Week 2 Assignment COM/156 The topic chosen to use for the final essay will be credit scores are a fair measure to help lenders estimate potential risk. The topic chosen is because the experience and relationships with lenders. The purpose of the paper will be to take the side of the creditor and provide detailed reasons for their decisions. In the end, the reader should have details on how the creditor uses this method to determine if the borrower is reliable, financially secure, and have the means to pay the debt back to the lender in a timely manner based on the contract between the borrower and lender. The paper will have facts, percentages of default loans, and risk that the lenders have to deal with every day. The paper should give facts and details, as this will back up the reasoning behind the opinion. If a poll would be taken today amongst Americans with the primary subject off how they feel about lending institutions, the majority of people would think that the lenders are not fair because of high interest rates. This paper should have enough information and detail to explain why lenders choose to use credit scores in the decisions that they make. In conclusion, the final paper will include all the points of view on the topic, which will be on the side of the lender. The different resources to prove the point will be a number of ways. The main resource used, is to interview a number of bankers from lending institutions from local banks and finance companies. The other resource will come from the library. The books there should provide statistics on the number of default loans from people with low credit scores. The research should also provide the statistics on defaults from people with high credit scores also. The intention on providing these stats will show the risk factor that the lenders have. The last resource used will be to reach out to credit counselors and discuss what creditors are looking for in terms of credit scores and if it is possible to discuss with lenders on how to receive credit with poor scores.