Over the last 3-4 decades, “Credit” has become a major driver of global economies impacting various commercial markets, consumer segments as well as demographics. Various individuals (mass affluent, high net worth and ultra high net worth) have to address Credit which directly impacts their overall lifestyle, wellness and wellbeing.
Subject to their tangible assets, gross income levels, taxes, healthcare costs, levels of debt, resulting disposable income and available discretionary income; purchasing power of each individual is an essential factor which impacts their overall Credit status or rating.
The key factors influencing Credit are classified as follows:
- Capacity; Ability-To-Repay
- Capital; Tangible Assets (Land, Real Estate, Vehicles, Stocks, Bonds, Cash/Savings Deposits, Precious Metals, etc.)
- Condition; Economy (Global, Federal, State, Local)
- Collateral; Assets Securitization (Free of any existing mortgage, hypothecation or collateralization)
- Character; Trustworthiness
As part of maintaining proper inner wellbeing coupled with positive lifestyle and wellness, it is important for various individuals to focus on gaining a better understanding and appreciation of the key underlying factors with respect to Credit.