How Does Credit Work?
The Credit Process, Explained
By Andy Sukhu
Here at Y2K Credit Solutions, one of our top priorities is to teach our clients and educate them on how credit works, how to maintain a high credit score, and what goes into getting a credit card or approval on a loan (with low interest and high credit limit).
What are banks looking for when looking to extend new credit to a potential new client?
It took us a while to release this information to the public since it is what the banks use.
As a software developer for the major credit bureaus in the US and Canada, one of the tasks I had was to create and write the script for prime bank credit card and loan approvals.
We get the following questions frequently:
Why can’t I get a credit card form a “Prime bank” ?
Why can’t I get a credit line increase?
Why am I only getting approved for “sub prime” bank cards with $500.00 limits?
Here’s the answer:
First off, understand that we had to obtain many permissions from banks and credit bureaus to release this information.
All banks uses a pass/fail system when approving you for a credit card, auto loan, or personal loan. These are the parameters the banks use to issue an approval.
It is all based off of a number count, and if your score does not come in at a 49 or higher you are not getting an instant approval.
If banks tell you you will receive a decision in 10 days, that basically entails that you did not get approved.
If, however, you get a message saying that your application needs further review; that means they need to verify your identity. So make sure you answer when the banks call.
Questions? Looking for help to get approved for your next credit card or loan?
Give Y2K Credit Solutions a call at (877) 552-1377, and ask to speak to me directly!