Wondering what banks look at when I apply for a car loan, personal loan, mortgage, etc etc.? Do they just look at previous loans from other banks, or do they look at CC history? Reason I ask, is every loan I currently have, or have had with a bank is current, with no lates, and/or has been completely paid off, on time with no lates. But, my CC history sucks. I'm currently in collections with 4 cards as a result of an accident and loss of work. I couldn't pay my CC's, but I made sure all my bank loans were being paid on time. Also, is it a better idea to apply for a loan with a bank you have a good history with, as opposed to going to another bank? Will they just look at your history with them, or will they still conduct a credit check? I'm working with a debt settlement company to get my CC debt squared off, but I'm worried how much it will effect my chances at getting another auto loan, and mortgage through a bank in the future.
Depends on the bank. The CU I'm with looks at credit scores for interest rates and credit review for risk assessment.
Ok. I was figuring that since the only accounts I have in collection are CC's and all my bank loans are current with no lates, that maybe they would consider the bank loans over the CC's. I'm working with a debt settlement company to get the debts taken care of. Plus only 4 CC's are in collection, I have another one that is current with no lates. It's my emergency, back up card that I did not submit to the debt settlement company. This way, I have at least one card open to help rebuild my credit with once all this fiasco is over with.
Most banks use scores, like anyplace else. But if you deal with a local bank or credit union, it might be a good idea to go in and talk to them. If you have a good history with them it may help.
It all depends on the bank. As mentioned above a lot of banks will first look at a credit score to tier the loan product. Most of the time depending on score this will limit about you can borrow, and the rate you will get. Then over all credit will tell you if you get the loan. I am a Finance Mgr at a car dealership and I have talked to buyers (loan officers) at banks and everyone is different. For example on rep at vw credit will look at two things. The first thing is other car loan history. If you paid good in the past there is a good chance he will say yes. The next thing he looks at is credit card usage. if its less than 50% and a good car loan history he will pretty much say yes to anything. I have talked to another rep from BOA and if the score is decent, and the customer has a BOA credit card he will do everything in the world to get you the lowest rate. Wells Fargo Fin. used to mainly look at previous auto history. While ford motor credit will look at and weigh your performance with them. perfect example... I worked at a ford store and this lady came in with like a 480 credit score. There is no way a bank would ever approve her, but after 5 minutes she was approved at the best tier ford offered, not to mention she was bringing like 5k of negative equity to her new loan. The reason for this is she had like 10 ford loans over years and has paid each one perfectly. She didnt pay anyone else except ford. Sorry for rambling on and on... but it seems like if you are applying for a mortage banks will look for other mortages, or other big ticket installment loans. for automobiles they will look at other automobiles. credit cards... who knows? any way i hope this helps.
