First, you must meet the requirements of the lender. Each major credit bureaus has their own set of requirements that must be met before you’re approved for a loan.
Thankfully, the majority of lenders are willing to work with applicants who don’t meet the maximum credit score requirements to guarantee that they will still provide the services that are needed to rebuild your credit. Lenders are very strict about what is credit builder loan eligible, so make sure you know what is required of you before applying.
Second, you want to show details about yourself to each lender that you go to.
This shows them that you are serious about getting a new credit card or credit builder loan. Make sure you obtain a copy of your credit reports from all of the major credit unions before you start applying.
Be Aware Of Your Credit Score And Report
About building a credit builder loan, you should look for information that will show details about why you have poor credit, your payment history with other creditors, any debtors, any outstanding debt that you may owe, and the total amount that you owe. This information will be most helpful in your application process, as it will show the lender what kind of risk you present.
Third, you should be aware that there are some negative things that could affect your ability to get approval for this type of a credit builder loan or credit card. The first thing that lenders will consider is your credit score. Any information that does not improve your FICO score is going to be considered negatively. This means that you cannot qualify for this program if your credit score is less than around 725.
This report will tell you the exact score Experian gives you, along with the exact sentence or sentences on your credit history that may cause a lender to deny you credit. One sentence in particular is called “pay for statement,” which shows that you paid your bills on time for the past few months. If any sentence on your credit report contains this sentence, the lender will deem it unfavorable and not want to give you any money.
What Is A Payment For Statement
What is a payment for statement is also known as “pay for rent” sentence. This is usually one of the biggest negatives that shows up on credit reports. It states that you rent an apartment for about a year and in the end, you did not pay rent. This sentence can hurt your credit score because if you do not make payments on time for one year, then this sentence will show up on your credit history for another three years.
Last Six Month Is Crucial
The last sentence that you need to be aware of is “last six months.” This is another negative detail that will show up on your credit history. This means that you have been continuously late on your payments for the past six months, which will immediately decrease your credit score. If you do not fix this problem before getting the loan, it is very possible that you will not be able to obtain any type of financing from any lender that you apply to.
On credit builder loan you always want to avoid negative sentences that show up on your credit reports. Instead, focus on the positive credit information that you have already reported on the past six months. Avoid using words such as “on time”, which shows your commitment to keeping your monthly payments current. It is also best to avoid using words like “paid”, which could possibly leave the impression that you never paid your bills. Always make sure to read the fine print of any lending agreement before you sign it.
