Credit 301
Welcome to Credit 301! Congratulations on making it this far on your Credit Success journey. In this course we will cover:
- How do I set myself up for future lending success?
- Should I trust online banking institutions like Chime?
Building your credit scores and managing your credit well are meant to get you closer to the house of your dreams, new vehicle, or any big purchase where you leverage who you are financially for money you don’t currently have. Every step on your journey to Credit Success should be deliberate. FICO and other credit bureaus don’t want you to randomly stumble on the correct path. Credit101etc is here to educate you on what path has shown the most success throughout our Credit Score Specialist’s several decades of experience helping clients achieve their credit score goals. Setting yourself up for future lending success starts now!
Onto brass tax, your future lending success starts with where you bank. Local credit unions are by far the best choice, followed by local community banks (yes there is a difference!). Building banking history with these institutions carries weight when it comes time to get a loan.
They are able to use your history with them to account for any discrepancies in your credit report, and they have in–person staff to support you along the way. Your future success starts with where you bank, how you manage your current credit accounts, and the questions you ask to the right people! Ask them all the questions you have:
- How do I get a car loan from you?
- What does your ideal lending client’s history look like?
- How can I find out more information about mortgages?
What would my journey look like if I chose an institution like Chime or any other online service bank? The answer to that is centered around cold and calculating algorithms followed by outsourced support with someone who’s audio quality is so bad that no one can understand each other. You don’t want to be battling phone issues when you are discussing a six-figure mortgage or auto loan. These institutions serve a purpose, and that purpose is to serve themselves, to see a green number get big and a red number go small. Your Credit Success journey will be much more difficult if you choose banking institutions like Chime.
We know how to set ourselves up for future lending success and what banking institutions we can trust. It’s time to get personal! How well have you managed your current credit accounts? Have you now or ever banked with a service like Chime? What customer service nightmares have you encountered trying to get a simple overdraft charge removed?
Think like a creditor. Would you loan you money? If not, why not. If you were a creditor, would you want to see page after page of high interest loans that you got for the sake of score building? No!!! Those are red flags. If you are applying for a loan of over $1,000 those strip mall loans that report to the credit bureaus are going to be a red flag to any decent lender.
Every lender has a box that you have to fit into. Minimum credit score, maximum debt to income, minimum liquidity, minimum job history etc. The county I live in is about 100,000 people. In my county there are at least 30 different institutions were you can have a checking or savings account and acquire loans. That does not include their branches. They are all looking for different loans to give. If they all had the same lending appetite then there would be one bank and many branches.
We will teach you how to find out which bank/lender wants to lend to you without having your credit pulled once.
Brian Chamberlain
Credit Score Specialist
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