What is Loss of Capacity?

What is Loss of Capacity?

Loss of Capacity is the inability to use credit as you could before the credit damage.

• Before the injury you had credit available, credit cards, car/truck loan or lease, a mortgage (or two).
• Because of the credit damage, your cards have been cancelled, or your credit limit(s) have been lowered. Often this credit account limit is reduced to what is owed, and the credit limit is lowered to reflect the lowered debt on that account.
• You are denied purchase or refinance on property – whereas before the injury you were able to get credit to buy or lease a residence.
• When monthly payments go up, or number of payments increases, this reduces the amount of credit that is ‘affordable’ compared to pre-injury rates.

Any or all of these may be considered when measuring economic damage.