Credit Report Affects Loan Applications
A credit report can make or break approval of a loan application. Lenders score credit reports to determine whether or not to give you credit or lend you money.
Your credit score is calculated using information from your credit application. Lenders assign a point value to various items on your report, such a length of time on the job, how often you have made late payments, debt to income ratio, the number of credit accounts, credit limits and length of time at your current address.
The score is determined by comparing your score with those of previous applicants. The more factors you have in common with people who pay their bills on time, the more likely you are to receive a favorable credit score.
Your score can be different from lender to lender. Lenders also may have different margins as to what score they accept.
Source: Dollar, Patrice. Talking dollars makes sense. (No date.) Photo copy.
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