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Advisory on Credit Report for a Better Chance of a Loan

By Faye Mergel
Published: Thursday, July 29th, 2010

19In today’s era, more business firms in the U.S. are vigilant in scrutinizing application as a precautionary measure on their business. Because of this, they advised customers to improve their Credit Report to avail of a loan without so much difficulty.

The firm’s advisory was a response to the increasing number of individuals who were denied of a loan or had a hard time availing one. Just like a customer who expressed her concern in one forum in the internet that when she applied for a housing loan, it was not easy. A similar problem was also observed in some replies of the forum. It was learned that the credit Score as reflected in their Credit Report is to blame. Currently affected with this issue averages from 50% to 80% of the applicants.

This is the importance of a pristine Credit Report as an expert of a lending firm and a manager of a bank explained to the consumers. With this, she encouraged involved individuals to aim for a better Credit Score. A score ranging from 780 to 850 or even higher should be their target to keep at least for a period of time. This would make them a favorite among other clients. While those with scores below this figure will surely belong to the clusters who are the second choice not only to the loaning giants but to employers as well.

To get to the said numbers, she further reminded customers to check their Credit Report at a regular basis with the legit Reporting agencies to update.  In another article, Deborah McNaughton, owner of Professional Credit Counselors mentioned that  if all are  current, a home loan and others, they are not being seen as negative. Those FICO scores will not be affected.  This only shows that making your record current plays an important role in loan application apart from it to be monitored if there are erroneous entries or unwanted information which may negatively affect the score as other report added.

Report has it also that paying debts on time is putting an ace to your score. They believed that not only the customers are awarded the points but also putting their business in the limelight of success. This, according to the bankers is considered an asset. They do not want delinquent borrowers as it is considered to drain their capital just like what the Federal Home Loan Mortgage Corporation is doing purchasing back properties which exceeded 120 days payment.

Once a good score is achieved, an applicant may reap its benefits when applying for any form of a loan. Interest would be better, faster loan processing time, larger amount could be approved, and many other benefits.

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