Your Credit Information

What you need to know about your credit before applying for a loan.

"A" CREDIT

"A" type Credit covers a broad range of credit, from perfect credit to credit with a few bumps. Even if you have had a bankruptcy in the last two years, you may be able to get a "A" credit loan. But basically, a good credit record means you have a history of paying your rent and other bills on time and will be able to prove that through a credit report or through compiling a nontraditional credit history. Although lender credit standards may vary, being late on a payment or having gone over your credit limit once or twice doesn't necessarily mean you don't have good credit--particularly if you can reasonably explain why. But if you show a repeated pattern of not paying accounts as agreed, it will affect your credit history. A good credit history tells the lender that you pay your obligations on time and use credit wisely-- important information for a lender to know when you want to take out a mortgage loan.

Mortgages are considered secured loans, that is, loans which are guaranteed through an asset, in this case, a piece of real estate. You should not have any late payments in the last two years. A late payment that is more than thirty days late from the due date and less than 60 days late from the due date. 

Auto loans are another type of secured loan. Lenders consider your payment history on auto loans almost as important as mortgages. You should not have any late payments in the last two years.

Lenders are much more forgiving with Credit Cards and other unsecured debt. If you were late on making one of these payments, more than 30 days late, but less than 60 days late, you should still be okay. 

Judgments are usually an automatic loan turn down, unless you have a really good explanation and proof to back it up. Collections are generally regarded the same way, unless it is a medical collection. Mortgage companies are extremely sympathetic about medical collections, because often, the medical profession turns over unpaid account immediately to a collection agency, often without notifying you. You may be considered to have "A" credit, even with a BK if you:

  • You have a good explanation for why you filed bankruptcy
  • you have reestablished at least three new lines of credit since the dismissal of bankruptcy 
  • your bankruptcy was at least two and preferably three years ago
  • You have perfect credit since the discharge of bankruptcy (no exceptions!)
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"B-D" CREDIT

This area is harder to define. If you don't meet the "A" credit criteria you will fall into this category. State Finance will work with you to find the best loan no matter what credit rating you have. Let us work for you! Click the Application button at the top of your screen to take you to our on-line prequalification form.
 
 

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BANKRUPTCY

Almost any individual, partnership, or corporation may file a chapter 7 bankruptcy petition if he or she resides, has a domicile, a place of business, or property in the United States, or a municipality. If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition and should check 11 U.S.C. sec. 109(g). 

If you were granted or denied a chapter 7 discharge in a prior case within the last 6 years or completed a chapter 13 plan in a prior case, you might not be entitled to receive a discharge in bankruptcy and probably are not a candidate for a chapter 7 bankruptcy proceeding. This rule does have some exceptions.

The person filing a Chapter 7 is referred to as the "debtor." The debtor is required to disclose to the court all his or her property and debts and turn over all nonexempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors. The debtor then receives a discharge of all dischargeable debts.

Statefinance can work for you even if you have filed bankruptcy. We are here to help you find the best loan possible to suit your financial needs. Click the Application button at the top of your screen to take you to our on-line prequalification form. 

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State Finance can help find the best loan for your needs. Call us today our toll free no. is 1-800-491-0937. or click on the Application button at the top of your screen which will take you to our on-line prequalification form.

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