Loans
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Types of Loans
Your credit score is the single most important factor in determining what loan program, along with the interest rate, that you may qualify for. Here is a breakdown of what score one may have and how it affects the loan process.
720+: Having this score and above means you qualify for anything on the conforming market and all products and programs available. This score is acheived by having no delinquincies in your recent payment history and having the appropriate number of open credit accounts. 680-719+: This score will qualify for most, if not all, conventional loan programs. This score also reflects one that pays their bills on time. In addition, the credit accounts they have open have low balances against their limits. The lowest rate on the market is generally what you would be able to acquire with this score. 660-679: This score will not have access to all conventional loans, and is deemed one with a higher element of risk. The rate would tend to be slightly higher than that which one would pay for having a 680+ credit score. This score reflects a few delinquincies, may have a few too many open credit accounts with the balances being a little higher in ratio to the limit. 640-659: One with this score would have less loan program availability on the conventional market and could be on alternative financing with a higher interest rate than even one at the 680+ level. This score reflects several delinquincies. 520-619: This score brings with it a high interest rate, and the sub-prime programs, qualifying for even what little is available may be difficult. This one will have a few to many open credit accounts. The credit accounts will have balances proportionately high to the limits. This score can reflect one of bankruptcy, foreclosure, and many delinquincies. |