The Specialty Lending Division can help place borrowers with imperfect credit on the fast track to improved credit.  We review your credit report with you and provide essential guidance to establish, repair, or restore your credit -- even if you have a limited credit history or serious derogatory entries.  We can place you into one of many programs designed specifically for those with less-than-perfect credit, and tailor the loan program to suit your needs. Please consult our Testimonials page for examples of what satisfied customers have to say about us, but for useful information on proven repair and restoration strategies we urge you to refer to our Credit Restoration page. ABOUT CREDIT This explanation may be a bit oversimplified, but credit profiles enable lenders to determine the statistical risks associated with any type of borrower. Credit bureaus were established to monitor borrowers' payment histories. Credit guarantors (lenders) routinely report customer payments to one or more of the three major consumer credit reporting agencies (Experian, Equifax, and TransUnion) where payment histories are archived and where your current credit scores are calculated. Each time you make a payment on a credit card, installment loan, or mortgage (through participating lenders, of course), it is permanently recorded.  Public records such as judgments, liens, or bankruptcies are indelibly etched within your credit profile.  Credit inquiries are also tracked for the previous year, so that credit guarantors can assess when (or why) others have been interested in your credit history.  Credit scores are merely a method of evaluating the risk posed by a potential borrower. Your credit score is a computer-generated summary that is calculated at the time a request is made.  Your scores are based on information that the three major consumer reporting agencies have on file.  Your credit scores are derived from your credit history and payment patterns, whether good or bad, accurate or inaccurate. Credit scores are important because they assist a lender in determining whether you will be able to qualify for a loan and the interest rate offered on the loan.  Borrowers who display a willingness to repay debts on time will see their credit scores rise as their history builds. Conversely, those who show a disregard for making timely payments will see their scores drop according to the number and severity of derogatory entries in their credit report.  Keep in mind that a couple of late payments can be devastating to a person with a short payment history and few tradelines, but may have little impact on someone with a long history of timely payments and several active tradelines. Beacon 5.0 (Equifax) and FICO 2 (Experian) scoring models provide credit scores which range from 300 to 850.  Empirica 950 (TransUnion) scores range from 336 to 843 (go figure).  All three scoring models were developed by Fair, Isaac, and Company. Credit scores with lower numerical values reflect inferior credit performance, and those with higher numerical values reflect superior credit performance.  "Non-conforming credit" generally ranges below 620, with most lenders flatly refusing to risk lending to borrowers with scores below 500 (although I often can).  “Conforming credit” generally ranges above 680, with the most favorable rates and terms granted to those with credit scores above 720.  Layered risk such as loan-to-value ratios above 80% of the appraised value, non-owner-occupancy, subordinate financing, cash-out, and other options will alter these generalities. Credit scores are calculated from several different areas of credit data in your credit profile. These data can be grouped into five categories as indicated below. The percentages outlined in the chart reflect the relative importance of each category in determining your overall credit scores, when compared to the general population.  However, the importance of the individual categories may be evaluated somewhat differently for certain groups (i.e., people with very short payment histories). Credit scores represent a snapshot in time.  Your current credit score may be remarkably different than scores obtained in the past for any of the following reasons: 1.       As information in your credit profile changes over time, these changes will be reflected in your current credit scores. 2.       The risk models used for calculating credit scores are slightly different across the three major consumer credit reporting agencies.  On occasion, a lender may chose to use an independently developed risk model. 3.      Financial institutions may not report their credit experiences to the same consumer credit reporting agencies.  In fact, they may not report consistently.  Some financial institutions may never report their credit experiences to a credit reporting agency. Your credit scores will change to accurately reflect your willingness and ability to repay your debts.  Your scores will change as you open or close tradelines, and as your credit history and payment patterns change -- or even as credit scoring technologies change. FREE CREDIT REPORT Find out exactly what your creditors are saying about you behind your back.  Request your FREE annual credit report by clicking here.  This is a secure website sponsored by Experian, EquiFax, and TransUnion.  This free service is being phased in over the next year.  Access begins in western states in December 2004, works its way across the midwest and southern states, and completes the northeastern states in September 2005. This FREE report is useful in identifying errors and derogatory entries, and provides a wealth of information about your credit profile.  It does not, however, provide actual scores without paying a modest additional fee.  Nevertheless, I will gladly provide you with your credit scores at no cost with your loan application. Since December 2004, lenders must disclose to you the credit scores used in conjunction with your application for a loan.  Key factors affecting your scores must also be disclosed.  Although I have revealed this information for years, it is finally the law of the land. Because your scores are based solely on information contained in your credit profile, it is very important that you review for accuracy all credit-related information that is being furnished to other lenders.  Credit records may vary markedly from one company to another.  It is your duty to monitor your credit profile for inaccuracies, omissions, and for the possibility of identity theft. If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided below.  The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application. Experian Box 2002 Allen, TX 75013-0036 (888) 397-3742   Equifax Box 740241 Atlanta, GA 30374 (800) 685-1111  TransUnion Box 1000 Chester, PA 19022 (800) 888-4213 Should you have questions concerning the terms of a particular loan, please contact me directly.  If you wish to apply for pre-screened secured or unsecured credit cards consult my Credit Card Offer page. INTEREST RATES AND BRUISED CREDIT Interest rates are determined by free market forces.  Namely, they are based upon activity in the mortgage-backed securities market and, to a lesser extent, the bond markets.  Interest rates are then adjusted according to additional layers of risk that a prospective borrower may pose to the lender.  The less risk that a given borrower poses to the lender, the better the interest rate and credit terms that the lender will extend to that borrower.  Good credit is always rewarded with lower interest rates and superior payment terms.  Of course, other layered risk factors will adversely impact rates and terms of even the best of borrowers.   Nevertheless, bad credit will always be subject to higher interest rates and inferior payment terms. In order to understand how interest rates can work for (or against) you, you must first understand the underlying statistics behind credit scoring.  Let us begin by looking at the odds of a borrower becoming ninety days late on a loan.  This is based upon a recent study of loan defaults. Credit Score         Odds 800+                           1300 to 1 740 to 799                     600 to 1 720 to 739                     325 to 1 700 to 719                     123 to 1 680 to 699                     56 to 1 660 to 679                     38 to 1 640 to 659                     26 to 1 620 to 639                     15 to 1 599 and below                 8 to 1 When you study the table above, it tells a creditor that when a borrower's credit score is above 800 points, only one person out of 1300 people is likely to default on a given loan.  Alternately, it can be expressed as a .0077% chance of default.  Is it any wonder why people with 800+ credit scores receive the best interest rates?   On the other hand, when a credit score falls below 600 points, one person out of eight people is likely to default on a given loan.  That is expressed as a 12.5% chance of default -- or 162.5 times more likely than the person with an 800 score.  If you were the lender, which risk would you prefer to assume?   Credit scoring is little more than a numbers game.  When you are able to increase your score through a long history of timely payments, creditors will risk lending you more money at a better rate.  Statistics prove that there is a much better chance of the loan being repaid when scores are higher.  Statistics also prove that lower credit scores reflect an element of risk that needs to be offset (or insured) through higher interest rates.   THE REST OF THE STORY The effects of bruised credit results in median credit scores below 620 … often far below.  Never fear. We provide immediate 100% financing to most borrowers with median credit scores above 560, when most lenders limit 100% financing to median scores above 580!   Use the following extreme lending guidelines to determine whether you may qualify under one of our many "bruised credit" programs: Difficult to document income (640 or high credit scores generally required) Two or more 30-day mortgage or rental delinquencies within the past year One or more 60 day mortgage or rental delinquencies in the past two years One or more non-medical collections in the past two years One or more charge-offs or judgments in the past three years One or more repossessions in the past three years Consumer Credit Counseling Services (CCCS) within the past year A bankruptcy filing within the past three or four years A foreclosure or Notice Of Default (NOD) within the past three or four years Qualifying debt-to-income ratios greater than 45% (I can go as high as 55% DTI under certain programs) Judgments, liens, charge-offs, repossessions, and collections – especially those that have been recently paid – may continue to haunt you.  Consult us to diffuse or eliminate these and other derogatory entries in your credit profile.   As specialists, we work closely with you to select the best possible solution for your particular situation.  We have partnered with dozens of non-conforming lenders who offer hundreds of different programs designed to assist those with damaged credit.  We then tailor the loan program to suit the individual customer’s needs.   Each of our loan programs includes a variety of options which are attractively priced at the most competitive interest rates available.  Most importantly, our staff will treat you with the dignity and respect that you so richly deserve.
Please remember that creditworthiness is not just about your credit score or your current debt ratios.  Missing a credit card payment or being hit with a medical collection does not automatically consign you to double-digit interest rates.  Nearly everyone has a couple of minor “dings” in their credit profile.  Quite often, they turn out to be nothing more than easily corrected errors.  The only sure-fire method of knowing exactly where you stand is to contact us for a confidential credit and income analysis.   We enjoy saying “YES!” when you ask for a loan.  On the other hand, we also enjoy saying “no” … no stress … no gimmicks ... no high-pressure tactics … no inflated fees ... no problem!   Isn't that a refreshing change?   NOTE:  Bankers are encouraged to refer your "fallout" (customers with bruised credit) to us.  We can usually provide sensible financing when you cannot. Call us at (763) 398-5565 today!