Source:
Informa Research Services
(9/23/2011) If
you're in the market for a new or refinanced auto
loan or the best
credit card rate on a new line, you may find financiers are digging deeper into your personal
history than the typical credit check.
Although
your credit score and report are still major considerations for private loans
and credit lines, industry regulatory changes have opened the door for other
information to be considered - such as employment history, salary and estate
value.
By
making judgments based on these extended factors, financial institutions and
businesses that offer consumer lending for services and products may be better
able to assess your ability to meet repayment terms. This can mean an easier
lending situation for some borrowers, such as those with questionable credit
histories despite a solid income. Some may also experience a backlash, however,
including borrowers with good credit scores that have suffered long-term
unemployment or have a smaller net worth.
The
goal of the Credit CARD Act of 2009 and similar reforms, in addition to new
regulations on interest rates, balances, notifications and payment terms, is to
stymie the approval of credit to those who can't afford repayment.
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