How Job Tenure and Home Ownership Can Improve your Credit Approval Rate
When it comes to credit ratings, the bottom line is that you have to look like you’re a good risk to a potential lender. That means that you need to look stable, responsible, and like you are serious about taking care of your debts. One of the biggest issues for many people is stability. Changing jobs often or moving a lot tends to look bad on any credit application, whether you are buying a car or just trying to get a credit card. Look at a credit application as an audition; you have to put on your best costume and show them exactly why you’re worth the risk.
You should never lie to get credit approval. You simply need to focus on the positive elements, and the more of them you have the better. Owning a home or living in the same rental property for several years can greatly improve your credit score. It means that you are responsible and stable. Generally, those people are more responsible and trustworthy than people who move around a lot or who can’t settle down. Essentially, companies want to know that you’re not just going to disappear at any point in time while you still owe them money. A stable living situation proves that.
The same sorts of issues come into play with credit approval when you are showing your work experience. You’re going to have to repay this loan. Therefore, you want to make it known that you are capable of doing so. If you change jobs all the time, lose jobs a lot, or have huge gaps in your employment, you aren’t going to look like a good risk to a lender. You’re going to look like you aren’t responsible enough to hold a job and that’s a huge risk to creditors of any kind. The more serious the loan or credit application, the more rigorous the application requirements will be. It’s important for you to get to know what companies expect so that you can showcase your best assets.
Having a secure job tenure and a home that you own or have a long-term living arrangement with is always going to look better to credit approval teams. They want to see that you’re serious and committed to repaying your debts. Along with having your other debts paid and not having too much outstanding, these two elements are going to show them that you are worth the credit risk because you are stable, responsible, and serious about borrowing money and repaying your debts.
You can ask any lender or loan officer about the importance of a secure job and a stable home address. It affects credit approval significantly; it also affects many other areas of your life even if you don’t realize it. The bottom line? Even if your credit history isn’t perfect, you’ll get extra points if you have a stable home and job tenure to show the lenders when you apply for a loan.
Are you having difficulty obtaining a car loan? Contact the Trillium Auto Group team today and we can help you get into a vehicle and drive your way to a better credit score!