When an Underwriter is reviewing your personal credit it’s not just the score they are looking at. An Underwriter will heavily analyze your personal credit profile in its entirety. Underwriters will make the basic assumption that you operate your business in the same fashion as you manage your personal finances. Underwriters are hired and trained to protect the lenders best interests and it’s their job to find reason to decline your application.

 

 

There are 3 main credit bureaus: TransUnion, Equifax and Experian. The majority of lenders will review only your Experian credit report and use TransUnion and Equifax as disqualifiers. It’s been seen, however, that some lending institutions will pull all 3 bureaus in their initial underwriting. This is why we recommend having all 3 credit scores above 680 before making any application for financing. Having all 3 credit scores above 680 and not just an average of 680 across all 3 bureaus will improve your likelihood of funding. 

 

 

In our ongoing evaluation of the current lending market, Lenders right now typically want to see an applicant’s credit score above 720. A credit score above 720 is normally a candidate for optimal funding, which is what we are trying to achieve.

 

Your credit score predicts the statistical chances of a consumer becoming 90 days late or more on particular loan obligation. Credit scores range from

300-850 for Classic FICO. Obviously, the higher the score the less chances the consumer will default. From the below diagram, which is outlining the odds of Consumers going 90 day late, we can see why Lenders weigh heavily on your personal scores.