Factors That Affect Credit Approval

Your credit is important. Without it, major purchases like a home or a car can be difficult — if not impossible — to secure. Banks often want to see near-perfect credit scores, while credit unions may show only a little more flexibility.

That’s where finance companies like American First Financial Services come in. We provide opportunities for individuals with less-than-perfect credit who are still working hard and paying their bills. Life brings bumps in the road, and our goal is to help you move past them — not be defined by them.

As a local lender, we take the time to review every application personally. We understand that credit is more than just a number. We look at your full situation, your history, and your willingness to keep moving forward.

Positive Factors We Consider

• Stable Employment – Two or more years at the same job, or five years in the same line of work, shows reliability.

• Housing Stability – Owning a home for at least a year or renting at the same address for two years or more reflects consistency.

• Solid Payment History – On-time payments with other lenders (with only the occasional hiccup) show a pattern of responsibility.

• Collateral or Equity – Having an asset to secure your loan can make approval easier.

• Income Support – Your income should comfortably cover all your credit obligations.

• Willingness to Pay – Demonstrated by your past effort and communication.

Negative Factors We Consider

• Short Employment Time – Less than six months at a job may be seen as unstable.

• Short Residence Time – Frequent moves can raise red flags.

• Recent Bankruptcy – Within the past 12 months.

• Recent Repossession – Within the past 18 months.

• Recent Judgment – Within the past 24 months.

• Serious Delinquencies – Consistently being more than 60 days past due with banks or lenders.

• Excessive Debt – If more than half of your take-home pay goes to credit debt, it may limit your ability to borrow more.

What This Means for You

Having one positive factor doesn’t guarantee approval, just as one negative factor doesn’t guarantee a denial. Every individual situation is unique. What may have prevented you from paying a loan in the past may no longer apply today.

At American First Financial Services, we believe in second chances and forward progress. Our mission is to help you get on track, stay on track, and move closer to your financial goals.

For more insights into how lenders think, check out my book Behind the Numbers, where I break down the real-world factors that go into loan decisions — in plain language that anyone can understand.