Many of us think that if you have a good credit score, you’ll get approved for anything.  Yes, a good credit score is a big part of the decision making process, but it’s not the only part.

Lenders have several factors that they use when determining your credit worthiness.  They not only look at your credit score, but they also consider things like the amount of debt you owe versus your income– Also known as DTI (Debt to Income).  Another thing to keep in mind is that some lenders will look at employment history to determine stability.

Each lender will have their own guidelines for their underwriting policies.  Some are lax policies and some are very strict. Always do your homework first before choosing a lender. There is no need to start adding damaging inquires to your credit report, when you may not stand a chance with a specific lender. Find out what they look for and what they deem credit worthy.

Lastly, it would also be prudent to find out what scoring models they use.

Credit Karma for example uses Vantage 3.0 ( at the time of writing this) whereas MyFico uses a “Fico” scoring algorithm.

If you’d like a FREE credit score evaluation, please contact us to schedule yours.