Archive for the ‘Getting Approved – 5 C’s of Lending’ Category

Recently, I had a call from a client whose loan had been declined due to failing the lender’s “credit score”.  The higher the rating means a decline from the Bank.   The Bank’s Credit Scoring system has been around a long time.  It is a computerised  TOP SECRET  ”black box” system that gives a rating on the applicant.    It is comprised of statistical information based on the analysis of thousands of loans and 50+ factors and bits of information.  The criteria is a closely guarded secret otherwise there’s a chance it can be manipulated.    It’s about reducing the risk to the lender of the borrower defaulting on the loan.  All lenders do it one way or another, although a small number of lenders can override the credit score and approve an application.   So before an application for a home loan is made it is critical that you speak to an experienced broker who can ensure you have the best chance of getting the outcome you want.  Better to wait for circumstances to improve then hastily apply for a loan to one lender after the other and have the enquiries on your credit file.