CHARACTER AND STRENGTHENING YOUR CREDIT POWER BASIC INFORMATION

ALL ABOUT CREDIT SCORES
How To Strengthen Your Credit Power - Character Counts

Credit Score

The famous banker, J. P. Morgan, declared,“I wouldn’t loan money to a man I did not trust on all the bonds of Christendom.” Don’t you feel the same way? Well, so does your lender (seller).

You’ve got to convince the lender (seller) that you’ll honor your obligations and commitments. Your credit score provides one indicator. But, when desirable or necessary, bolster the impression this score creates with other types of written information:

1. Employer. If your lender requires a completed VOE form (verification of employment), ask your supervisor to enclose a letter that commends your dependability, integrity, and responsibility at work.

2. Credit blemishes. Explain how misplaced bills, your vacation, a move of residence, or other non-character-indicting reasons account for these lapses that you deeply regret. Even better, discuss the new bill-paying systems that you have now put in place to prevent future lapses.
3. Credit wreck. Explain a serious problem as a once-in-a lifetime, beyond-your-control event that you coped with as honorably as possible. If your lapses really were due to irresponsibility, emphasize that “you’ve learned your lesson the hard way” and now live well within your means. Put together objective evidence to support your “new you” claims.
4. Personal references. In the old days of mortgage lending, younger borrowers were awarded loans merely on the basis of family character and reputation.2 “Why I’ve known Luke Jr.’s family for 30 years,” the loan rep says. “They’re great people. Loan approved.” Now, in our big-city, automated world, personal references to lenders seldom count for much. Still, if you’ve established good rapport with people who could prove influential, it wouldn’t hurt to enlist their help.
When desirable, accent the fact that you’re a good credit risk by showing alternative documentation. Otherwise, the lender will infer your dependability only from the shading provided by your formal record of credit and consistency.

When adverse facts color too dark a picture, try to add some brighter highlights to the mix. Think. What evidence can you come up with to bolster your credit profile?
What loans or merchant accounts have you repaid on time that don’t show up in your credit file? Will your current and past landlords vouch for you? Have you consistently paid your utilities and phone bills promptly? Often, lenders will accept any or all of this alternative evidence to bolster your reliability and good character.