What underwriters look for when granting unsecured business lines of credit.
Post By : Ray Antonelli
Post Date : 05/29/2019
1) No lates of any kind on the whole credit report. one or two isolated 30s might be OK but will impact
the size of the credit lines at the minimum. 2) 8 years minimum history for revolving debt (credit cards)
Longer is even better. Recent college grads probably won't qualify even with 700+ scores because their cards are only 2 years old. 3) No or low credit pulls in the last 12 months. A handful is OK.
15 or 20 is an automatic turn down unless they are cleaned off. 4) High credit card limits and low balances. The balances can be no more than 30% of the limits on all cards. My ideal client has a 25K card limit but
owes nothing or maybe 3K. Previous high credit was 20K but paid it back. That tells the underwriter that this client knows how to handle large sums of debt responsibly and will qualify for larger credit lines as a result. 10 to 15K
card limits will also qualify. The difference is the credit lines will initially, not be as high. If I look at a client’s credit and approve it today, then the client has up to 100K or more in credit lines they can spend in 30 days or less. 5) If the client does not meet the above, guarantors or co-signers are freely accepted. Armed with this info I don't even really need the scores. I can tell whether the client is approved and give them a good ballpark estimate of how much
they might be approved for.
