Be Prepared BEFORE you go to the bank
Something that I notice is that people are generally TOTALLY UNPREPARED when they go to the bank. A lot of times these clients will walk in wondering if they would qualify for a loan or line of credit and then ask the banker to run their credit in order to find out whether or not they qualify for anything. In past times, if you had decent credit or you thought you had ok credit but just had not checked in the past you still may have been approved without a problem. However, banks are lending sluggishly now so it is so important to know what you want and apply for only what you need and ONLY AFTER you have prepared to apply.
What is being prepared to apply?
· CHECK YOUR OWN CREDIT SCORE FIRST USING A SERVICE THAT WILL ALLOW YOU TO BUY A FICO SCORE.
o Using a service to pull your own credit will ensure that you will not incur a hard inquiry and as you know, too many hard inquiries can cause a lending institution to decline your loan because “you have been looking for money”.
· SPEAK TO AN EXPERIENCED BANKER THAT KNOWS THE CREDIT SCORE CRITERIA OF THE PRODUCT THAT YOU WOULD LIKE TO APPLY FOR.
o If you know the minimum score that your lending institution will approve upon then you are empowered by knowing your score and also knowing if you meet the minimum score qualifications.
§ If you don’t meet the minimum score qualifications for that institution…Don’t take it personal…. HEY THAT BANK IS NOT FOR YOU RIGHT NOW. You have prevented a fruitless hard inquiry on your credit report.
· MAKE SURE THAT ANY BALANCES YOU HAVE PAID DOWN HAVE ACTUALLY POSTED AND UPDATED ON YOUR CREDIT PROFILE BEFORE YOU APPLY FOR ANY NEW CREDIT
o Doing this could save you money because you interest rates or limit approved can be affected by your debt to income ratio and also you credit loan to value ratios.