Sentences with phrase «risky loan applicant»

However, from a banker's perspective, a newly formed corporation is a more risky loan applicant than an individual with a home and other assets.

Not exact matches

Approved loan applicants are assigned a credit rating, which determines the interest rate charged on any loan they receive, and provides clues to investors about how risky a borrower that person is.

Consumers with high credit scores, 760 or above, are considered to be prime loan applicants and can be approved for interest rates as low as 2 or 3 %, while those with lower scores are riskier investments for lenders and generally pay higher interest rates.

If it is a riskier second mortgage or the applicant has no income, private lenders will charge higher fees compared to regular bank loans.

Applicants with a low credit score, indicating potentially risky financial behavior, are likely to have to pay a higher interest rate on their loan and, in some cases, may be rejected outright.

For riskier loans; where the applicant has no income or is seeking a second mortgage, fees charged tend to be higher than those for a regular bank loan.

An older applicant might not qualify for a large loan with a 5 percent down payment on a risky venture, but might qualify for a smaller loan — with a bigger down payment — secured by good collateral.

So, in case an applicant may be considered a risky one, he still maybe able to get an unsecured personal loan with a higher interest rate.

If you apply for a mortgage or an auto loan, lenders will take one look at your high balances and low score and consider you a risky applicant.

On the other hand, when an initial loan application passes our robust screening models, we generally deem the applicant to be less risky and therefore don't always need to verify their income.