One lessoned learned during ‘90s was importance of due diligence; researching company financial records, management philosophies, growth strategies, etc. Doing so allows investors to find strong investment opportunities and minimize risk of purchasing a bankrupt company.

Investing to make money stresses need to evaluate financial goals and taking steps, not leaps, to get there. The oil boom of year has brought about several high return stocks; doubling or tripling in a matter of months. Taking advantage of one of these stocks is a giant leap, but finding a 200% gain might require 7-8 25% losses. Ultimately, an investor could lose more than gained.

With solid research, finding companies capable of returning 10-20% growth per year has a high probability. While not as romantic as a single high-return investment, five 20% gains equals return of a single 100% gain. This is meaning of taking steps. Settle for solid returns and repeat process as many times possible. While not every stock will produce 20%, selecting strong companies will limit your risk for large losses.

DPB Financial – www.dpbfinancial.com

Each creditor may use its own scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company. How reliable is credit scoring system?

Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, scoring systems must be based on a big enough sample. Remember that these systems generally very from creditor to creditor. Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.

In fact, many creditors design their systems so that, in marginal cases, applicants whose scores are not high enough to pass easily, or are low enough to fail absolutely are referred to a credit manager who decides whether company or lender will extend credit. This may allow for discussion and negotiation between credit manager and consumer. What happens if you are denied credit or don’t get terms you want?