Banks are getting tougher and more stringent when it comes to providing loans and credit to consumers these days. The change that one sees in the financial circles is due to the loss that the firms are incurring due to bad debts. Though banks and financial institutions have been notorious about preferring consumers who cannot always pay the entire credit payments, the fact is that it is from among these consumers that insolvent situation arises.

And that is the reason why banks screen loan or credit applications and the information provided in the credit application or 1003 (term for application in mortgage business). Therefore, it is extremely important to understand the entire process and try so that you can fill up the application in a manner that will ensure your credit.

There are two factors that really determine your chances of getting a car loan, mortgage or even a credit card. These are:

    1. The content of the application and the information you provide about your jobs, house history and more
    2. Your credit history, the credit score and other specific factors that go into determining your score.

A good credit score and a good credit history is obviously a very important factor. However, there are many applicants who get rejected regardless of a good credit history. This is because you can actually have a good credit history that does not result in a good credit score. For example, if you have a few credit cards with maxed credit limits or an open mortgage that you have been servicing for the last few years, you can still have a credit score between 670 and 690. In some cases people with 4 to 6 credit cards and only two or three years in credit report with a score of 720 or higher. It is therefore obvious that a good credit history is a necessary but not sufficient condition for a good credit score. You can learn more about this in another article on our website.