As a lender, the most enjoyable part of consulting with customers is those with good credit.
As always, people with good credit are given a lot of options.
Those with a credit score of 700 or higher are first eligible for the Stated Income/Stated Asset Program (loans that do not require proof of income and source of funds), which is useful in solving the problems the income of the self-employed and sources of funds held in cash, which are the most difficult to deal with in our Korean society.
Credit status is the first thing to ask during a conversation with a customer.
When I asked the customer if he/she knew his/her credit score, and he/she said it would be roughly around 700+.
Sometimes customers’ estimated credit scores are inaccurate, so when I returned to the office after the consultation and pulled out the credit report, and the score was really over 700.
While I was researching my customer’s credit report in more detail to prepare the loan documents with peace of mind and joy, the word “credit counseling” suddenly popped up on the report.
I let out a deep breath, and the joy disappeared in an instant, and I began to worry about what to do with this.
'Credit counseling' can improve your credit score and boost your score, but for home loan banks, it's almost equivalent to Bankruptcy.
This is because, from the bank's point of view, this person is also considered to be incapable of managing his/her own payments.
The credit score was high but because of 'credit counseling,' I ended up proceeding with subprime lending.
If you applied for 'credit counseling' because of high payment debt, you must wait at least 2 years after 'credit counseling' to get a loan from A-Paper Lender.
Therefore, if you are in 'credit counseling' and plan to purchase a house, you must first cancel 'credit counseling' and apply for a loan after about two years.
Please note that otherwise, you will have no choice but to go with the sub-prime lender.
For future reference, if you are on the market and need credit correction, choose a company that works within the limits allowed by Federal Trade Commission law. There are many companies that come and go, so be sure to check the history and background of those companies.
Also check with the Better Business Bureau (703-276-010 or www.bbb.org) for consumer complaints. We recommend that you select a company after confirming in advance that the documented contract specifies the method of payment of fees, service costs, and guarantees of results.