Lender
Hi there, thanks for coming in today. I am hopeful we can find a way together to get what you need. Can you explain more to me what that is?
Lender
What exactly brings you in today?
Borrower
Sure—my score is in the mid 600's I think. I recently found out a family of squirrels has made my car engine into a condo. I need to take it in and have them clean the whole thing out. I need about 3500.
Lender
Oh man, a whole FAMILY of squirrels?!? That is crazy. OK, let's work together on getting you back behind that driver's seat. Now, to make sure I have the best chance of getting this approved, are you ok with a very open conversation about your credit history? I only need to get the story behind the credit so I can explain the history to the underwriters who will make the decision on this loan. Are you ok with that?
Borrower
Absolutely. What do you want to know?
Lender
So, looking at your history, it looks like you had several credit cards get behind about a year ago. You absolutely caught it up and have paid well but can you tell me what happened at that time?
Borrower
Ok, so last year, I went through a bit of a rough patch. I was out sick for about 3 weeks but was too new at my job to have any sick time. I ended up being unpaid for most of that time off. I tried to pay what I could. It took me a little bit to dig out because I could pay the monthly notes, I just couldn't pay more than that to make up for the missed payments until my tax return came in. Once I received it, I was able to catch it all back up.
Lender
Thank you so much for your honesty. I know these can be uncomfortable conversations. That sounds like a really stressful time to go through. I am glad you are past it. Just a few more questions and we can move on. Looking at a loan request with us a few years ago, your credit card debt wasn't a huge concern, your capacity was in a good place.
Lender
Looking now, I see a lot of almost maxed out cards. You are paying them on time but the balance is holding your score down. Why did you start using the cards more? Was it one thing, general living or circumstantial would you say? Also, one final questions, it appears one of these cards had one missed payment a few months ago, can you tell me why?
Borrower
Yeah, when I was out of work, I ended up using my cards to pay for things like food and utilities. I am trying to pay it down, but I feel like I am barely making a dent. I actually cut up most of those cards not long ago so i can't use them anymore. Now, let me think on the late payment......Oh yeah, i absolutely forgot about it one month. I was so upset with myself I immediately went and put it on auto pay. that shouldn't happen again.
Lender
Ok Perfect. I think I have what I need here. There is one last question before I send you on your way, in case they would be more comfortable with using collateral to secure the loan, is that an option for you? It can be anything you own that has an engine and wheels basically, so a vehicle, boat, golf cart, atv, etc.
Borrower
I owe a lot less on my car than it is worth. If we need to can we use that?
Lender
Yes, email me the details on it, including payoff and mileage and I will have that in my back pocket just in case. I really look forward on working on this for you. I think we can definitely get something figured out. I will give you a call by this afternoon with a decision. If I have any questions between now and then, may I text you or would you prefer a phone call?
Borrower
Text would be great. Thank you so much. Look forward to hearing from you later.
