Forums: Discussions for entrepreneurs and small business.

I didn`t get a loan when I went to my personal bank - he wanted 25% equity and collateral, but I did get a credit check. I didn`t get a loan when I went to a lender off the internet - he wanted three years credit card use history, and I have none. I did get a credit check. There are thousands of lenders out there, and the odds are one of them can work for almost anyone. However, every attempt makes every subsequent attempt less likely, because the financial geniuses that set up the three credit bureaus decided that when a party verifies my credit, I`m less creditworthy. I disagree with this, as a side note, but it is what it is. 

I agree 100%, what are we to do about this because it is killing me slowly!

A loan broker seems like the solution for those with the means. One credit check, 2,000 loans. 2,000 credit checks, 2,000 loans - that was my suggestion.

Matt, I think you’re missing a few important facts.

First of all, you make it sound like you got the loan. Did you?
If not, the only measurable success in dealing with this “broker” is limited to not being out any money – at least for now.

As far as frequent credit checks are concerned, I would be extremely surprised if you won’t see a bunch of new inquiries on your credit report and thus a rapid decline of your credit score over the next couple of weeks.

Quite contrary to your believes, the credit check made this broker won’t suffice to secure credit, because the broker won’t be the lender. By definition, the broker only functions as a matchmaker who brings two interested parties together (in this case somebody who desires a loan and somebody else who is willing to make the loan), but the broker won’t be a party to this deal.

So, any lender being remotely interested in working with you will do their own due diligence and inquire about your credit. Makes sense?

Personally, I think you may have entered dangerous territory here. Many of these so-called loan brokers work with email blasts, which literally blast your profile and requirements out to hundreds of potential lenders hoping to get a positive reply.

Unfortunately, many of these potential lenders share the questionable ethics and business practices of the brokers they work with, so you will likely see a large increase in “approvals” that come with some serious strings attached, which in all likelihood require some form of guarantees or upfront payments. In addition, many of these brokers or lenders will sell or market your data to make some money down the road, which since your profile is likely to include your SSN could even give rise to identity theft and the like.

Unsecured Loan Solutions, Inc. may be the rare exemption to this rule. I checked their website and BBB rating, which seems to be excellent. I’d still inquire about the possibility of multiple credit checks to be safe.

I hope this helps and didn’t cloud your optimism.




Mark





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No risk, no reward. Unsecured Solutions seems to be the exception to the rule. They assured me:

Matt,

Thanks... I spoke to Marcio from this company today and he seemed very friendly. I like the idea of them NOT doing a credit check and advising you to get one yourself to ensure that the ratings doesn`t change.

Question: Why the HELL does a credit rating go down if it`s checked? That`s like doing your taxes ahead of time and paying an additional 3% because you asked your accountant how much you were going to owe. Sheesh.

I`ll keep everyone posted. I`m only looking for about $2,000 to fund more advertising. I`ll be able to pay that back without any problems - but I just need that funding to get the ball rolling.



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Shawn R. Tooley
North Country Design
87 Lisbon Street
Heuvelton, NY 13654
Phone: (315) 307-3359
Email: shawn@northcountrydesign.us
Web: http://www.northcountrydesign.us

Cool! Marcio is the agent working on my case too. I first got contacted by JC who did the sales pitch and initial paperwork, then by a woman who took more personal info, and finally Marcio who is doing the actual lender work. I feel safer knowing somebody else saw the same info I did and went with it. I`m usually fairly insecure. I make a decision and then worry till it resolves. Best of luck to you!