Credit Resources

Useful information regarding consumer credit, credit scores, interest rates, and responsible borrowing.

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increase your chances for better rates

t is important to know that lenders do not make decisions based on credit score alone. While credit score does play an important part in the decision making process, it is only one piece of the puzzle. Knowing more about your personal credit and what types of things lenders look for when making credit decisions will help you on your loan search to find the best rates and terms or to know what things you need to fix in order to be more appealing to lenders.

credit decisioning basics

how lenders see you

Contrary to popular belief, to most lenders, you aren’t just a number. Credit score is important but it is not the only basis by which lenders decide to lend. Knowing what they look for when evaluating your credit application will help you decide which is the best loan option for you.

Credit Score

Most lenders do not approve on credit score, but use it as a credit floor. For instance, a lender might set a credit score floor of 600, which means a score of 599 or below would automatically declined.

Credit History

Once your score is high enough to qualify for a particular lender, then they evaluate your credit history. They are looking to see how you have performed with the credit you have established throughout your life.

Ability

Another important decisioning factor for a lender is the ABILITY to repay the loan. For this they look at debt-to-income ratio, or the amount of income you have vs your monthly payment obligations. They are looking to see if you can afford the payment and many lenders will set a minimum income requirement.

Credit History

Most lenders do not approve based on credit score alone, but rather use it as a filtering mechanism to initially find applications they want to review. For instance, a lender might set a credit score floor of 600, which means a score of 599 or below would automatically declined.

useful links

Credit Resources

Credit Scores

MyFico

Learn more about what goes into making your credit score.

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Get Your Credit Score

CreditSesame.com

Since 2010, Credit Sesame has helped millions of consumers find better financial products and do more with their credit score.

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Credit Repair

CreditRepair.com

Fix errors in your credit profile history and make adjustments for a better, healthier score.

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CFPB

Consumer Financial Protection Bureau

Learn about the government agency that monitors consumer lending practices.

DETAILS

Don’t know your credit score? Find it in minutes.

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