Too often lending requirements, parameters, and underwriting is a mystery to consumers. At The Funding Company, we believe that the better consumers understand the process, the more approvals we will be able to offer. This philosophy of educating customers provides a much stronger lending platform, where our customers can help themselves better qualify for funding.
The Funding Company does not require income verification, asset verification, or employment verification. As a result we require a strong credit profile to establish a client’s ability to pay. This enables us to provide funding without the lengthy paperwork process required by traditional banks.
When are guidelines for lending are met we have a funding rate of 99.9%. Factors that are most critical in obtaining funding through The Funding Company include the following:
1) Credit Score – Minimum of 680 score is required across all bureaus used for qualification. The credit score gives The Funding Company an overview of the credit a client has along with your ability to manage that credit wisely. The overall score is calculated by a number of factors which include primarily:
2) Credit Utilization rate needs to be under 60%. –Credit utilization is the percentage comparing the available line limit to the actual balance on the account. The Funding Company looks at each individual account. The calculation is easy. Divide the available credit by the balance and you will receive the utilization ratio for that particular account. If you have a credit limit of $10,000 and a balance of $1000 you have a utilization ratio of 10%. This ratio is factored for all revolving lines of credit. This will include credit cards, equity lines of credit, and any other account where you can use the line, pay it back and re-use the line without requalifying. To meet this qualification, each account must independently meet the 60% threshold.
3) Have no more than 4 inquiries per credit bureau in the last 90 days. – Credit inquiries occur for two different reasons. The first is a soft hit. These are inquiries that you do not control. Companies looking to issue you additional credit, insurance or even employment can create a soft pull. A hard pull occurs when you apply for credit, or when you sign a form authorizing a company to pull your credit file. The 4 inquires include hard hits only.
4) Have a minimum of 4 open and active primary trade lines. – Only open accounts are considered on your credit report.
5) Prior bankruptcy, judgments, repossession, foreclosures, or collections will require a manual review to be considered for approval. Accounts that contain any of these items may also require documentation, as the underwriter deems necessary.
6) Late payments will be considered on a case by case basis depending on how far out the late payments were and how often they occurred. Late payments will limit the loan amount that can be approved and may potentially require additional documentation before approval can be granted.
7) The current address of the borrower must match the address on the credit report. This is an important factor for security reasons. A difference in the address could create a requirement of full documentation.
8) Full personal verification is required for all applications. This also means all fraud and security alerts on your credit files must be removed in order to process the application.