ARE YOU FUNDABLE , OR DO YOU JUST HAVE A GOOD SCORE ? MERRILL CHANDLER
The third area of a highquality credit profile is your installment loan portfolio . As with your revolving account portfolio , you can have a Tier 1 , 100 % quality loan , and you can have a Tier 4 , 40 % quality loan . The quality of the loan contributes to or detracts from the quality of your credit profile and the quality of your credit profile determines your fundability .
The next contributor to a highquality credit profile are your inquiries . Inquiries count against your credit score for 12 months , but what we were not told is that the inquiries count against underwriting and fundability for 24 months . FICO ® and lender underwriting software downgrade your fundability significantly when you have too many inquiries . How many is too many ? FICO ® allows one inquiry per six months without a
significant degradation of your credit score or fundability .
After one inquiry per six months , there is a steep pointloss curve as you incur more inquiries . Additionally the quality of the accounts you are applying for will impact your credit profile . Finance companies , mall store cards , and other lowgrade credit instruments have a greater negative impact against your score than higher tiered credit instruments .
Finally , the most powerful negative contribution to your profile and fundability is the presence of derogatory accounts or other negative indicators . The credit repair industry has increased borrower awareness about the negative impact of bad credit . Unfortunately , credit repair is not a solution that will help your fundability . Credit repair companies offer a meager dispute letter writing campaign in the hopes of removing a few negative accounts . While the removal of these accounts may improve your score a little , it does not improve the essential nature of your fundability as we ' ve described in this section — credit repair does not help you build a powerful FUNDABLE credit profile .
ARE YOU FUNDABLE, OR DO YOU JUST HAVE A GOOD SCORE? MERRILL CHANDLER
The third area of a highquality
credit profile is your installment
loan portfolio. As with your
revolving account portfolio, you
can have a Tier 1, 100% quality
loan, and you can have a Tier 4,
40% quality loan. The quality of
the loan contributes to or
detracts from the quality of your
credit profile and the quality of
your credit profile determines
your fundability.
The next contributor to a high
quality credit profile are your
inquiries. Inquiries count against
significant degradation of your credit score or fundability.
your credit score for 12 months,
but what we were not told is that After one inquiry per six months, there is a steep pointloss curve as
the against you incur more inquiries. Additionally the quality of the accounts you
underwriting and fundability for are applying for will impact your credit profile. Finance companies, mall
24 months. FICO® and lender store cards, and other lowgrade credit instruments have a greater
underwriting software downgrade negative impact against your score than higher tiered credit
your instruments.
inquiries
count
fundability
significantly
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