-Credit Monitoring System
-Free Credit Report
-Age & Credit
Your Report Yearly
-Credit Report FAQ
-Who Looks at Your Credit?
-What is Credit Scoring?
Credit Type Are You?
-How Scores are Computed
-Understand Your Credit File
-Sample Dispute Letter
Sample Follow-up Dispute Letter
-Impact Of Inquiries
Credit Scoring Blunders
YOUR CREDIT AND MORTGAGES
No matter if you are
buying a home for the first time, looking to
move into a new house,
refinance your mortgage or
take out an equity loan, your
credit rating is going to
impact the rate and terms of your mortgage, as well as
the amount you are approved.
If you are someone that pays your bills on time, and does
not have a lot of debt, you have a good credit rating and
will have no problem getting a low rate mortgage loan
that satisfies your financial needs. But, what if you
don't have good credit?
Believe it or not, getting approved for a mortgage with
bad credit is not difficult at all. In fact, Star Loans
Services has many
bad credit home loan products that will make your
dreams of home ownership a reality.
Your Credit Does Not Have to Be 'Perfect' to Be
If you have only a 1-3 blemishes on your credit report,
Star Loan Services will simply request a written
explanation as to why these negative marks have occurred.
If your explanation is logical, we will likely excuse
these isolated issues - particularly if these marks are
old and your credit has been strong since.
Star Loan Services is most interested in what kind of
credit practices have been exhibited over the last 1-2
years. Signs of good credit offer some flexibility for a
rare late payment. When judging an applicants credit
worth, we look at the following:
-- Revolving credit - This means
credit cards. You should
have no more than two late payments for at least 60 days
and no more than three payments 30 days late.
-- Installment credit - This means
car loans. You should have no more than one late
payments for at least 60 days and no more than two
payments 30 days late.
-- Rent or mortgage payments - No more than one late
Credit Scores Are Not the Only Thing Looked at
When Determining Your Credit Value
Determining your credit has become very sophisticated.
Other factors are being used other than your score. For
example, when determining what kind of risk applicants
are, some lenders will look at how many credit cards are
'maxed out' (indications of the inability to manage and
having many inquiries on your credit report
is considered negative by some lenders. Too many
inquiries is an indication that you have applied for, and
been denied credit more than one time or that you have
too much credit.
Star Loan Services has a lending network that gives us
the flexibility to be more lenient in our credit
ratings. Therefore, having maxed out credit cards and
multiple credit inquiries is most likely not a major
issue when applying for any type of mortgage or loan
'Compensating Factors' Can Improve Your
Below is a list of some compensating factors:
-- A hefty down payment.
-- An existing loan or mortgage requiring large payments will exhibit
your ability to cover larger than normal expenditures.
-- A positive credit history will outweigh a current low net worth.
-- A high net worth will outweigh a current low income.
-- The probability of a career improvement and/or salary increase as a
result of the furthering of your education and/or job
training. This scenario is good for young adults with a
high amount of
student loan debt.