ARE YOU FUNDABLE , OR DO YOU JUST HAVE A GOOD SCORE ? MERRILL CHANDLER
The third area of a highquality credit profile is your installment loan portfolio . As with your revolving account portfolio , you can have a Tier 1 , 100 % quality loan , and you can have a Tier 4 , 40 % quality loan . The quality of the loan contributes to or detracts from the quality of your credit profile and the quality of your credit profile determines your fundability .
The next contributor to a highquality credit profile are your inquiries . Inquiries count against your credit score for 12 months , but what we were not told is that the inquiries count against underwriting and fundability for 24 months . FICO ® and lender underwriting software downgrade your fundability significantly when you have too many inquiries . How many is too many ? FICO ® allows one inquiry per six months without a
significant degradation of your credit score or fundability .
After one inquiry per six months , there is a steep pointloss curve as you incur more inquiries . Additionally the quality of the accounts you are applying for will impact your credit profile . Finance companies , mall store cards , and other lowgrade credit instruments have a greater negative impact against your score than higher tiered credit instruments .
Finally , the most powerful negative contribution to your profile and fundability is the presence of derogatory accounts or other negative indicators . The credit repair industry has increased borrower awareness about the negative impact of bad credit . Unfortunately , credit repair is not a solution that will help your fundability . Credit repair companies offer a meager dispute letter writing campaign in the hopes of removing a few negative accounts . While the removal of these accounts may improve your score a little , it does not improve the essential nature of your fundability as we ' ve described in this section — credit repair does not help you build a powerful FUNDABLE credit profile .