Finance Credit Check

Credit score explanation

All loans must have a credit report to determine the credit history of the borrower. This report is intended to determine someone’s credit experience and willingness to pay off their debts. This information indicates to the lender the risks of providing them with a new loan. The mortgage industry has undergone changes in relation to credit reports, which include not only an analysis of the borrower's credit history, but also its credit ratings. Credit scoring is simply a statistically sound tool for assessing the likely future results of a borrower. This is achieved by applying various weights to certain characteristics in the credit report that are relevant for predicting future behavior. Statistical analysis is applied to these values ​​and is used to calculate the risk assessment.

In today's mortgage world, most investors require at least one FICO, and most require three credit ratings. The results are new to traditional mortgage lending, but they have been used since the 1950s in the areas of auto finance, the personal finance and credit card industries. Risk assessments are common models developed in conjunction with three major credit repositories: Experian evaluates FICO, Equifax evaluates Beacon, and TU evaluates Emperica. The bureaus provide access and delivery of invoices to creditors with an actual credit report. As an industry, mortgage lenders call this group of credit scoring codes FICO. A minimum score of 620 is required for any regular loan signed in accordance with the recommendations of the FNMA and FHLMC. Ratings below 620 should at best pay extra points or attract inappropriate (substandard) investors. The best mortgage rates and the highest loan values ​​are only available for high credit scores. (700+) Borrowers with bankruptcy, open collection accounts, late payments, balances greater than the average for open accounts, liens, court decisions, old collection accounts or other derogatory loans of any kind should be evaluated and placed with the appropriate investor. The decision must be made at an early stage of filing an application by receiving a credit report in a file for a fee of $ 18. In many cases, an embedded file will suffice; However, if a full report is required, the cost will be around $ 55.00, which includes a complete update of all credit accounts.

If a borrower has a good credit history and a good credit rating, they are usually placed in the A-paper category (Prime). With a low or excellent score or a low score, the borrower can be divided into categories ranging from A to B, C and D. Interest rates for categories below "A" are higher and usually require a larger down payment or more capital in the home. Whenever a borrower’s loan appears bruised, we give them a copy of our loan statements to begin the process of clearing their loan. This may even be the case with good or excellent credit, as it is estimated that 96% of credit files have errors. If the loan cannot be repaid immediately, the strategy is to put the client in a loan such as a band-aid. This helps the borrower, getting them a loan for two to three years, while restoring a good loan. After healing, we then refinance them in an “A” product for a better rate. Just five years ago, these loans were not even available. Now we can help people we could not have before. This requires some planning and coordination, but the results are often phenomenal.

Credit Bureau Evaluation Factor Codes
(The numbers are the codes indicated in your report)

Account debt is too high (01)

Account Overdue Level (02)

Too few bank revolving accounts (03)

The share of loan balances is too large (03)

Too many bank or national revolving accounts (04)

Lack of latest installment credit information (04)

Too many accounts with balances (05)

Too many consumer credit company accounts (06)

Account payment history is too new to measure (07)

Too many inquiries in the last 12 months (08) (Beware of this, you can ruin your account when buying a car or a mortgage.)

Too many accounts recently opened (09)

The share of balances to credit limits is too high on bank revolving or other revolving accounts (10)

Revolving Account Debt Too High (11)

Duration of revolving accounts was created (12)

A time when crime is too small or unknown (13)

Time bills were created (14)

The lack of information on recent banking turnover (15)

Lack of information on recent current accounts (16)

No recent mortgage balance information (17)

Number of late bills (18)

Too few bills currently paid as agreed (19)

Last request date is too recent (19)

Elapsed time since derogatory public records or collections are too short (20)

Accounts receivable (21)

Serious Offenses, Degrading Public Records, or Collections of Submissions (22)

The number of bank or national revolving accounts with balances (23)

No recent balance sheets (24)

Installment loan repayment term (25)

Number of current accounts (26)

Number of bank revolving or other revolving accounts (26)

Number of retail accounts (27)

To several accounts that are currently being paid as agreed

Number of accounts created (28)

No recent bank card balances (29)

Date of last request to recent (29)

The time since the last account was opened is too short (30)

Too few accounts with recent billing information (31)

Overdue accounts payable (31)

No installment loan application (32)

The share of loan balances is too large (33)

Arrears on past due accounts (34)

Account Payments (36)

Duration of granting loans by installments depending on the duration of the history of consumption (37)

Serious Offenses and Public Records or Collections filed (38)

Serious Crime (39)

Assigning a Public Record or Collection (40)

No recent retail balances (41)

Elapsed time since the last account was created in a consumer finance company (42)

Lack of information on recent mortgages (43)

The share of balances to the amount of the mortgage loan is too high (44)

Too few accounts with balance (45)

Number of consumer lending companies requests (47)

Lack of latest retail invoice information (50)

Retail Account Debt (56)

Lack of fresh information on car loans (97)

The period during which consumer credit company loans were established (98)

Lack of fresh information on car loans (98)

Lack of fresh information on car loans (98)

Lack of Latest Consumer Credit Company Account Information (99)

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