Tag Archives: estimating bad debts

When does Ford Credit recognize bad debt expense associated with a new car loan?

Every individual has a credit score, which is an approximate measure of the risk of loan default to potential lenders.  Credit scores range from about 300 – 850, with 850 being the best credit score possible.  This credit score is a combination of several categories of history about the individual, including length of credit history, […]

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What are “loan reserves” at Bank of America?

According to a recent Wall Street Journal article (“Big Banks Are Adding Profits With ‘Reserve’ Cash, October 25, 2013” , Bank of America has indicated that its credit quality has increased since the financial crisis of 2008, due both to increased loan standards and rising house prices. Bank of America released $1.4 billion of loan reserves […]

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