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For anyone looking to boost their clients credit scores up a bit or their own on Experian - Experian has this free service where they will report utilities you pay for and give your score a small boost due to the positive history of payments. Sometimes you need a specific score to qualify for specific programs, so this can assist there for anyone in need. Especially for the disaster relief programs. Enjoy
https://www.experian.com/consumer-pr...ore-boost.html
Not great for funders. Merchant has crap credit, gets boost, boom. Takes an advance... and turns out just because he doesn't want his phone shut off doesn't really mean he's going to pay 1.40 factor rates.Quote:
Originally Posted by brandon_
I've used it myself. Sick program, works near instantly.Quote:
Originally Posted by brandon_
We can see if the merchant is self-reporting these services so unless a funding company just looks at a credit score and says "High number its good" it should still be underwrote properly.Quote:
Originally Posted by SFC
Here is one I had submitted to us yesterday - Merchants credit was 542. 1 account bouncing child support every other month, 6 charge off/past due/closed accounts/ and a bunch of "Self Reports".
Attachment 2701
I underwrite CC stacking deals all the time and the boost does nothing to help in terms of approvals or amounts.
Scores have no impact, it's all credit history, balances, etc.
Don't underwrite MCA's though, but I would imagine when they're looking at the owner's personal credit it's likely a similar situation.
Did I say anything at all about using this to fund MCA's? lol Tough crowd
This is mainly to help clients qualify for the EIDL loan, or for your own personal credit.
SBA is using Experian currently - as long as score is above 600 they can look at the application.
I've been doing this for a long time, and probably understand credit relatively better than the average broker.
It's gonna be a grab-bag here.
Some funders have a "hard minimum" of 550 (or whatever) even if the bank statements are amazing. And they don't even look at the credit history, they just care about the score.
Some funders have a minimum FICO of 680 for their A+ rates. Bluevine's is 650 FICO for example.
SBA's minimum is 640, but I'm not sure which FICO model they're using.
And yes, if you're doing the CC stacking game, while AU cards can be a minor boost, they can affect some form of approvals.
In all cases, it certainly doesn't hurt.
No doubt.Quote:
Originally Posted by abfunders