Creditor’s Security And Credit-14

Character can also be demonstrated by stability. Your creditor will

definitely look at things that don’t factor into your credit score

calculation at all. Whether job security is a reality or a myth in today’s

times, it’s still a very real factor in the lending decision. They want to

know that you are a stable credit risk.

Lenders will be interested in knowing that you own your own home.

Homeowners, as far as lenders are concerned, are more credit worthy

than renters. Lenders presume that homeowners understand financial

obligations and are accustomed to making their monthly payments.

Lenders presume that homeowners are more responsible in matters of

long-term employment and commitments. Owning real estate in your

community will indicate a level of commitment and stability that lenders

want to see.

Lenders are very interested in your line of work, because your

profession is also an indication of stability. Certain jobs are more

desirable to a lender than others, often with a bias towards professional and managerial jobs and away from skilled labor and clerical positions.

In reviewing your application, lenders will also look to your length of

time at your current place of employment. Even in a poor economy

where the concept of job security is a joke, lenders will want to see that

you’ve been in your current job for several years. If you’ve changed jobs

recently, they will want an explanation why the move took place. Since

they are lenders, a greater salary is always a sufficient reason. A

change inside the same industry or with a title change may be seen

favorably, even if it isn’t.

Lenders want to know things such as whether you have a savings

account. People with savings accounts are at least thinking about

saving their money. People with savings accounts with balances are

demonstrating that they don’t spend all they make. If you keep all of

your cash in one checking account, consider portioning some of it off

and opening a savings or money market account. Even a small savings

account will communicate to the lender that you have the ability to save

money, a specific plan to do so, and some evidence of financial

responsibility. Your lender will want to see that you have had your

checking and savings accounts for some time, and without unusual

fluctuations.

Your character, combined with income, are the only factors considered

in most consumer lending decisions. Credit card lenders and other

retailers only want to know the information on your credit report and

the amount of money you earn. Character is important for employers as

well. Especially when applying for a job handling money, lenders want

to know you aren’t in credit trouble, so that you won’t be desperate and

dishonest.