Credit scores are typically the what everyone considers “credit health”, and they are used by creditors and lenders to get an understanding on the applicants financial risk. All credit scores have limits, they typically only reflect an high level view of a consumer’s financial history, debt accumulation status, and debt repayment history.

Often, creditors want to know more about an applicant, in order to know all they can about a potential borrower before extending credit. They will look at your actual credit report, in addition to your credit score. Credit scores are based on the information in your credit reports, which records the type of loans and credit you’ve received, your track record in paying back those debts, the length of time any credit accounts have been active, how much actual credit you’ve taken in historically, and whether or not you’re seeking new loans or credit. Additionally, a credit report includes information about bankruptcies, civil judgments and where you reside. But sometimes lenders want to know even more.

Let’s take a look at what surprising things lenders look for when they are deciding whether or not to lend you money above and beyond a standard credit check. Often, these factors apply:

1. Employment history
Aside from your debt amount and your track record of paying your bills, more lenders are adding employment history to the credit checking criteria mix. Creditors may want to review your job history as a means of estimating income stability. A good employment track record‚ÄĒsay, two or more years at the same company‚ÄĒindicates you’re stable professionally, and thus a good credit risk. But if your employment history is of the job-hopping variety, that could be a cause of concern for lenders, who may either deny you credit outright, or provide very high interest rates,

2. Income
Personal income is also a huge factor in loan and credit approvals. Just like employment history, stability is rewarded with credit approvals and lower interest rates, a steady income indicates to creditors that you have the financial means necessary to cover your debt payments. Try to avoid employment breaks.

3. Length of time in current residence
The longer you reside in one home (especially as the owner), the more likely you’ll be approved for credit. The answer is easy… Because “home stability” shows you’ve been able to make your mortgage or rental payments, and thus represent a good credit risk.

4. How often you change cell phone numbers
As we noted above, a stable phone number is a big plus for creditors these days. Credit applicants that use the same cell phone number over and over and over, helps indicate a level of stability. Stability is usually a very positive indicator for someone to continue to pay.

These topics are not all of the factors, but the biggest ones lenders look out for. We offer free credit consultations, make an appointment and come on in we will break it down and take our time to show you how to maintain and build credit.

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*Individual results may vary. Please call for details and to discuss your own individual situation