I speak to a multitude of people on a daily/weekly basis. So many people that it can get overwhelming at times. But I wake up each morning with one goal and that is: "how many people can I help reach their financial goals today?" That is my mission.
In my 20+ years in the real estate and finance world, I have come to understand that the majority of the people in the United States are struggling financially and are trying to figure out a way to make it just one more day, week or month! Because most of us were ill-advised, misinformed and uneducated when it came to credit and finance, we've constantly perpetuated bad money-habits and are simply trying to figure out HOW to fix it and get ahead.
Now I do several things in my business when it comes to financial empowerment but the number one request by far when I am on a call is: "can you help me get funded?" Now when I delve a little deeper and uncover what I am working with and what kind of funding the client is seeking, the answer could often be "no" because the credit is rating on the poor to fair scale or...I encounter a client who has 700+ credit scores but very limited credit. All of these scenarios are hard to fund in the traditional banking world. Luckily, I work in traditional and alternative funding so, I may not be able to get you what you asked for...but I can get you something!
I want consumers shopping for money to understand what the banks are looking for. One of the main conclusions I need people to take away is banks think like you. If you were loaning money, you want to know "will I get this back?" Banks aren't any different. What they loan, they want back...on time...and with interest!!
Below is a little breakdown of what the banks (traditional and alternative) are looking at when you apply for a loan.
Credit Scores Below 630
If you possess a credit score below this number on all 3 credit bureaus, you are someone who poses the greatest risk to a bank. Your credit scores say you are "untrustworthy" with credit and because of that banks will either decline your file immediately, require huge down payments and/or tack on loan-shark worthy interest rates in order to deter you or approve you. Another thing the bank can do is ask you to secure your loan with an asset. If you are sure you're going to make good on this loan, than, back it up with something you own. This doesn't mean we are going to approve the loan, but, it does make the bank feel warm and fuzzy inside to know that you are willing to put up collateral for a loan. If you fail to repay, than, you can either lose your possession or have a lien placed upon you. Either way, the bank will get their money back. This is called: Asset Based Funding or Secured Funding.
A good example of this is a mortgage loan. Most people can get an FHA loan with a credit score as low as 580 as long as they meet other checks and balances required for a home loan. Should you default on a mortgage loan, your house will be taken from you via a foreclosure and the bank will get their money from someone else while ruining your credit (even more) in the process.
Credit Scores 630-699
Traditional funding is still on the fence here when it comes to approvals.
They see potential but the risk is still there. If you're looking for personal funding you may qualify in the $5,000 - $20,000 range (without attaching an asset). If your looking for business funding, you have a higher chance of being approved for higher funding (even below a 630 credit score).
If you are a business owner and you're in need of cash ASAP, be mindful of those "revenue based loans", also known as "merchant cash advance (MCA)" loans. Just like payday loans, these funding methods are predatory. Rates are ridiculously exaggerated and these lenders will fund you today and start debiting your bank account EVERYDAY until they get their money and interest back.
If you are able to take that money and flip it instantly, then that loan makes good monetary sense and you can pay it off right away. Otherwise, like many clients I've spoken with...those daily withdrawals from their bank accounts are draining them and in many instances, hurting more than its helping!
At this level your credit is still rated "fair" and subjected to higher interest rates. Be mindful when you are working with a lender.
Credit Scores 700++
This is the level where you are able to call your own shots (maybe)!
I say maybe because, just because you have a 700+ credit score does not mean you have the right mix of favorable credit on your credit profile.
Most people don't know that when you apply for a loan, 99% of the time, the computers are authorizing the yes or no on your file, long before a human being ever touches your file. If your credit report fails to meet the "formula" that is predetermined in these computer systems, if the algorithm is off by even a little, your file will be declined or possibly approved for a lesser amount than you need.
The mix of credit banks like to see are: 2 years or more of positive reporting credit, revolving and installment credit lines are great to have (at least 3-5) and low utilization on credit cards (30% or less is the expectation). In addition, how does your income factor in? If your DTI (debt to income ratio) is high, that can cause a decline also. When it comes to length of time on a job, occupation, or business...2 or more years looks great. Shows you have job/income security and you'll be in a position to afford/repay the loan your seeking.
If you are adding tradelines, DO NOT add too many authorized user accounts. Yes, it can help boost your credit scores but you need a balance of primary tradelines as well. If you have a 730 credit score and that consists of 1 - $500 Capital One card and 3 - Authorized User Tradelines over $10,000...that's NOT a good file and it will be declined. You may be able to get approved for small limit credit cards and a low-level car but for the most part that's all you'll receive. If your goal is to attain more, than build your file properly and if you need help...call me!
Understand that unsecured funding (cash and credit cards) are the hardest loans to get because the majority are NOT secured by anything but the story being told by your credit profile. If your credit report is a horror story, trust that the lender will run away in fear!
Now working in both traditional and alternative funding, my company has resources that can help clients with: excellent to poor credit files get funded. Keep in mind that those with poor credit scores will not receive high funding amounts for personal loans, but...if you are a business owner and/or you have assets, you will have a few more options I can explore on your behalf.
The best thing is to get a FREE consultation to learn what your options are: CLICK HERE
Personal Loans are available from: $500 - $100,000.
Business Funding from: $5,000 - $1.5MM.
If you need to rebuild your credit or increase your credit scores quickly by adding tradelines...we have those options available as well. Again, the goal is to help our clients advance financially, both personally and professionally.
The only thing holding you back is you!
I'll see you at the top, because the bottom is too crowded!
Ph (410) 929-6212
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