Some companies don't
require a credit score in order to approve your application whereas others do and place great importance on it.
Because some
banks require a credit score of at least 720 to qualify for a personal loan, most people with good credit will also be denied a loan.
Even though they sound unconventional, peer - to - peer sites are still mostly available for those with good credit and
often require a credit score of 620 or higher.
The move comes after the National Association of Realtors ® and FHA Commissioner David Stevens, among others late last year, criticized the country's major banks for
requiring credit scores as high as 650 in some cases before making loans.
Finally, one major way that installment loans are different than payday loans is that installment loans are more likely to
require your credit score when you apply and report your payment behavior to credit bureaus.
Service providers or lenders will not
require credit scores with the three major credit reporting bureaus: Experian, Equifax, or Trans Union.
There are conventional loan programs with as little as 3 % down payment but they not only require mortgage insurance, they
also require a credit score of 740 or above which may eliminate some buyers.
Cash Reserves Are Required Richardson says the
minimum required credit score in most cases is 700, and that an approval can depend on the cash reserves of the borrowers, as well as the amount of home equity.
However, some lenders
require credit scores from one or more of the three major credit reporting bureaus (Experian, Equifax, and TransUnion), and therefore by using this service, you consent that the lender and their service providers may evaluate your credit history and qualifications by performing a credit inquiry through a major credit bureau or an alternative provider such as Teletrack, DP Bureau or others.
Approval: Some Discover credit cards
require a credit score above 700 for approval, and even cards that are easier to get require scores well into the «good» credit score range.
Traditional banks will usually want applicants with scores between 700 - 800, while alternative lenders can work with applicants with scores of approximately 650 and up (though some online lenders may
require a credit score as low as 500 or have no minimum credit score requirements).