ARE YOU FUNDABLE, OR DO YOU JUST HAVE A GOOD SCORE? MERRILL CHANDLER By definition credit repair strategies and those service providers who offer them, are completely ignorant of fundability and do not know how to create a credit profile that will contribute to credit approvals. In fact, most credit repair firms, in a feeble attempt to help their clients “rebuild” their credit, refer them to lowvalue junk credit instruments, etc. These junk cards pay referral fees so the credit repair company wins, but the clients balance, recency of last bounced check) and the 24 take another hit to their credit. It is a travesty how month lookback period. Underwriting software much ignorance there is among organizations who calculates behaviors over the preceding 24 months say they are trying to help disadvantaged and measures it in a logarithmic scale. A borrower’s borrowers. behavior over the last 24 months is the key indicator of what the borrower's behavior will be for over the Let's take a look now at the final fundability factor: next 24 months. The 24month lookback period underwriting. Underwriting software expands the cannot be underestimated in its importance to your requirements of fundability significantly. Since it is fundability. the lender that is actually extending the credit (and carrying all the risk), lenders have developed (in The next time you are at a cocktail party or social concert with FICO®) their own underwriting criteria gathering and someone tries to dazzle you with their and software. credit savvy, politely interrupt them and ask them to share their understanding of ANY of the topics you Underwriting software takes into account credit have learned in this article. When they stutter and score, income, debt load, current banking hum and ha, overwhelm them with all your relationship (checking account, average daily knowledge about fundability! Every borrower in this country, and every individual in the upcoming generation needs to learn what we have reviewed here. We cannot remain in our ignorance. We cannot be “at effect" of these billiondollar organizations who notsosecretly profit from our ignorance. We need to turn the tables and make ourselves knowledgeable AND fundable. If knowledge is power, then applied knowledge is a superpower.