The 6 ‘C’ Of Credit Assessment.
While Houston Finance’s panel of lenders all have different lending criteria, based on the type of business they want and style of applicant they want on their ‘books’, they all use the same 6 criteria when assessing an application; each lender will just put more or less importance on each of the criteria.
The following list explains the 6 different lending criteria for finance applications that Houston Finance finance brokers and ultimately lenders use when deciding whether to lend their money.
What is the applicant’s asset position? Do they own their home, or have substantial equity in it? Do they own or have equity in other real estate? Do they own or have equity in vehicles, bikes, boats? Do they have savings or investments? Do they have home contents & is it insured?
Can the applicant afford to make the re-payments? Does the percentage of expenses to income meet the lender’s guidelines?
The government also has laws in place to stop irresponsible lending practices.
Houston Finance Can NOT assist you if you’re unemployed; receiving ‘Newstart Allowance’.
How does the applicant’s credit file look, any defaults? What about current or past loan history, were the payments made on time, and were the repayments at a similar level to what is being sought, this time? Does the history on this application match the history on the ‘credit file’?
How does the ‘equipment’ or car for example ‘book’? Does it meet the lender’s criteria?
How stable is the applicant in their home life, and work life. How many enquiries are on their credit file?
Outside factors that can effect a lender’s decision. Maybe everything looks OK on paper but the lender is aware of something significant that you perhaps are not. Some examples are, maybe their employer is filing for bankruptcy, or the applicant is known to the Police or Government.
It would be handy to make some notes about these criteria before completing an application; either online or by contacting Houston Finance.
When answering questions by one of our finance brokers, or entering in your details through our ‘online application for finance form’, remember we are here to help you. Answer all questions honestly.