As a Loan Originator knowing tips and best practices for helping borrowers with less than perfect credit is very important. This will not only help you close more loans but increase the likelihood of referrals from a pleased mortgage applicant.
So how can you help your borrower increase their score 50 points in 30 minutes? One word, tradelines.
Here are Alan Hayon’s three favorite tips for working with tradelines to increase your borrower’s score.
1. Use rental credit. If your borrower doesn’t have an open and active tradeline that is at least 6 months old a FICO cannot be generated. rental credit is a great way to show up to two years of previous rental history.
2. Spousal authorized users. If there are two borrowers on an application, you should always see if one can help the other by adding them as an authorized user on their seasoned, well-paid credit cards.
3. Get their limits increased. If your borrower has over a 650 credit score and they’ve been timely with payments for more than two years on their revolving accounts, ask them to have their limits increased.
Have a question about credit improvement? Feel free to contact Alan Hayon at 800-965-6405. Alan Hayon is a FICO® Professional who and has been helping Loan Originators and borrowers improve their credit since 2011. Prior to moving into credit repair, Alan Hayon was also a Loan Originator since 2001 giving him a unique expertise in credit repair as it relates to mortgage lending.
Follow Alan Hayon for more tips, advice, and suggestions for Credit Repair Improvement.
Comments