You don’t actually need a good credit score to get a loan. The only reason FICO scores exist is to reduce the amount of work banks have to do to investigate potential customers. However, many smaller banks are willing to do a manual underwriting, where they look at your history and make a decision based on that instead.
Obviously if your credit score is low that is indicative of poor borrowing habits which will probably be corroborated by manual underwriting. However, if you have no credit history at all, you will probably get a better outcome than if the bank only looked at the FICO score.
Look for community banks, which are very small banks that serve your local community. Those banks are far more willing to give customized service like manual underwriting.
Better credit scores will definitely net you a lower interest rate, though. Zero credit history is a major liability for lenders, so even small banks or credit unions with private investors will want some kind of benefit or incentive for taking on an increased risk of default.
The real fucked up part about credit scores is that it seems like it should be something the federal government regulates, but they don’t. For-profit companies do. And when they get hacked and expose all of your data so scammers can assume your identity for eternity, they can’t be held liable or responsible. All of that just so lenders can feel safer about who they give money to.
I’m actually part of a credit union and would recommend it to many people. The credit union didn’t get interest rates as low as what the big banks did a few years ago, but they’re also not as high as the big banks are currently.
One thing I really liked about the credit union was that they didn’t use my credit score when deciding my interest rate, they only checked it to make sure it didn’t have any glaring issues. Also I like that the credit union doesn’t sell my mortgage to a third party.
I also would recommend credit unions over banks. I have a local one that I use but I also have an account with PenFed, which is open to the whole nation and is one of the few places that offers a 2% unlimited cashback on everything no-fees card.
You don’t actually need a good credit score to get a loan. The only reason FICO scores exist is to reduce the amount of work banks have to do to investigate potential customers. However, many smaller banks are willing to do a manual underwriting, where they look at your history and make a decision based on that instead.
Obviously if your credit score is low that is indicative of poor borrowing habits which will probably be corroborated by manual underwriting. However, if you have no credit history at all, you will probably get a better outcome than if the bank only looked at the FICO score.
Look for community banks, which are very small banks that serve your local community. Those banks are far more willing to give customized service like manual underwriting.
Better credit scores will definitely net you a lower interest rate, though. Zero credit history is a major liability for lenders, so even small banks or credit unions with private investors will want some kind of benefit or incentive for taking on an increased risk of default.
The real fucked up part about credit scores is that it seems like it should be something the federal government regulates, but they don’t. For-profit companies do. And when they get hacked and expose all of your data so scammers can assume your identity for eternity, they can’t be held liable or responsible. All of that just so lenders can feel safer about who they give money to.
I’m actually part of a credit union and would recommend it to many people. The credit union didn’t get interest rates as low as what the big banks did a few years ago, but they’re also not as high as the big banks are currently.
One thing I really liked about the credit union was that they didn’t use my credit score when deciding my interest rate, they only checked it to make sure it didn’t have any glaring issues. Also I like that the credit union doesn’t sell my mortgage to a third party.
I also would recommend credit unions over banks. I have a local one that I use but I also have an account with PenFed, which is open to the whole nation and is one of the few places that offers a 2% unlimited cashback on everything no-fees card.
deleted by creator
They may do that for an extra percentage point of interest.