Credit Worthiness

FAQ: My score is low will this keep me from getting approved!? Or I got a 750 why didn’t I get approved!?🥵

Believe it or not sometimes your Credit Score may go down... or even be high! But your Credit Worthiness may remain the same... or be low...🤯

Now this is some Advanced stuff so it’s ok if you don’t get it...🤓

But essentially the real “Credit” comes into play when companies do something that’s called underwriting... 🧐

Underwriting simply means that your lender verifies your income, assets, debt and property details in order to issue final approval for your loan. An underwriter is a financial expert who takes a look at your finances and assesses how much risk a lender will take on if they decide to give you a loan. 🤓

First I’ll explain how “Credit Worthiness“ may even be determined... 📃

There are 4 ways to determine the creditworthiness of a consumer:

1. Run a credit report. Using credit reporting agencies like TransUnion , Experian or Equifax. 📊 (this is just like a report card on everything about you basically and what you owe, how many on time payments etc.)

2. Obtain Accounts Receivable/ Aging Reports. 📅 (refers to the outstanding invoices a company has or the money clients owe the company. The phrase refers to accounts a business has the right to receive because it has delivered a product or service. While the aging report is the primary tool used by collections personnel to determine which invoices are overdue for payment. )

3. Check References. 🏦 (just like when a company calls people for references on a job you applied for, at a cost to them they can find out the length of time a consumer has been with a bank and what the revolving lines of credit are.)

4. Perform a Gut Check 🤔( Gut instinct and intuition are critical tools of success. Are you answering the phone? responsive to emails? If the answer is no, you may also be slow to pay bills.)

Credit Score:📋

Credit factors such as your payment history, the amount you owe, how long your credit accounts have been open (your credit history), new credit, and the mix of credit types go into a FICO score. These scores range from 300 to 850; the higher a consumer’s score, the better.📚

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