Consumer Credit Repair What They’re Looking For

Let’s say you want to do consumer credit repair. Lenders will be looking at five areas. Those factors all start with C character capacity capital collateral & conditions.

Character

Character refers to how well lenders can trust you. If they know you personally that’s great. Oftentimes this is determined by how well you’ve made payments on time.

Your credit report will show 30 60 & 90 day delinquencies. Credit card companies are often the most aggressive about reporting. As you could guess negative entries count against your credit score. You’ll want your report to show all accounts in good standing for working to repair consumer credit.

Capacity

Capacity is the ability to make the payments. It’s essentially your cash flow. If your expenses are close to your total income they won’t want to lend you more money because you won’t be able to pay it back.

Capital

Capital shows that you know how to manage money long term. It’s a look at your net worth. Lenders don’t want to give money to people who need it. They want to lend to people who have shown to be able to use it wisely to build up more assets. That’s a better lending risk for them.

Collateral

Collateral is what they take back if the loan goes into default. Credit cards are unsecured but a mortgage is secured by real estate. While lenders don’t want to have to deal with real estate or vehicles personally having those as collateral is less risk for them.

Conditions

The state of the the market & economy are the conditions. The rise & fall of interest rates & inflation are in this category. As the Federal Reserve tightens up credit to banks consumers find it harder to qualify as well.

This also applies down to your local lender. If a banker is having a bad day or maybe you look at him funny that could affect whether you’re approved or not.

Character capacity capital collateral & conditions are the five areas to focus on when you’re looking to repair consumer credit.

Find out how to do your own credit history repair without an agency. Visit www.creditrepairsecrets.org for free help.

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