The Facts and Fallacies of Impaired Credit
All Contents © 2004 USDebtService.com
There is overwhelming controversy surrounding less than perfect credit. The evaluation of credit worthiness is contingent upon two important facets: 1) The way you have used credit in the past and 2) The reasons for the previous financial difficulties. The following facts and fallacies on credit demonstrate how good credit does not necessarily imply perfect credit.
Most lenders will not consider you a higher credit risk only if your credit report states that you have excessive late and slow payments.
Fallacy. Generally, most lenders will consider you a higher credit risk if your credit report depicts that you have a pattern of making late and slow payments.
For installment credit (auto loans), lenders can reject the approval process for a payment of 60 days or more past on your credit report.
Fact. Lenders frown upon any installment credit payments made over 60 days.
Lending institutions do not consider credit cards or revolving payments made over 30 days past due as a credit risk.
No payments 60 days or more past due and no more than
Fact. Actually, one payment made over 30 days is not viewed as harsh as two payments 30 days past due.
Consumers with a credit report of 60 to 90 day late payments should very rarely worry about finding available financing.
Fallacy. For consumers with a credit report of 60 to 90 day late payments, there are lending institutions that specialize in financing less than perfect credit.
For more information on your credit report you can also refer to the Fedral Trade Commissions site. Credit Reporting Information.
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