What specifically do they look for when performing the credit reference check?
-Judgements
-Delinquency
-Bankruptcies
-Collections
Would a Chapter 7 Bankruptcy filing discharged 9 years ago be a disqualifier? Do they look at income/debt ratio even if all your bills are paid on time and never late?
Whatever the credit report provides gets looked at closely. If you have financial issues, be prepared to discuss multiple times throughout the phases of your investigation.
Thanks! No financial issues except for the Chp. 7 Bankruptcy that was 9 years ago. In fact, it will come off the credit report in November of this year. However, no collections, no late payments, no judgements since the bankruptcy filing so I’m assuming I should be ok.
Financial red flags aren’t a deal-breaker, provided you have good answers for all of them and documentation to back up all of it. Be honest and they can connect the dots pretty quickly and move past it.
They may or may not ask you to do a FDF, but it all depends. That’s where debt-to-income can come into play. Just be honest. If they start to question your veracity, it’ll take longer.
Bankruptcy isn’t a deal breaker even if it was more recent. Be prepared to discuss it, the reasons that you were in trouble, what attempts you might have made before filing and what changes you have made to ensure that it doesn’t happen again.
Thanks, you both have provided reassuring information to help me prepare. God Bless!
I would probably guess, if i didn’t already know the answer, that everything asked in the financial section of the SF86/SCA is what we look at in the credit reports.