We’ve said it once and we’ll say it again: At World, you’re more than a credit score to us. We always take your full financial picture into account when you apply for a personal loan. That said, you may be wondering what we do look at when reviewing your application. Today we’re going to clear up that mystery!
Credit history
Yes, we do check your credit history – but don’t panic. We consider a number of factors that contribute to your credit score such as the length of time you’ve had credit and your past payment history.
Credit usage
Your total amount of available credit also impacts your credit worthiness when we review your application. If you have several credit cards with high limits, it can raise flags about your ability to repay a loan if you should max those cards out. Additionally, we look to see if your balance is close to your total available limit, which can suggest you’re having difficulty paying your bills or too reliant on credit cards to make ends meet.
Debt-to-income ratio
DTI is a financial measure of your monthly debt payments compared to your gross monthly income. To find yours, add up all your recurring monthly expenses including rent or mortgage payments, loan payments, credit card payments and monthly utilities. Divide that sum by your gross monthly income, the total amount you earn each month before taxes and other deductions. In order to evaluate your DTI, plan to provide proof of income such as pay stubs or tax forms.
Types of credit
We love to see a mix of credit types in your history – from personal loans to auto loans, mortgages to credit cards. This demonstrates your ability to be responsible while navigating different types of debt.
Recent inquiries on your credit report
Applying for lots of different credit in a short period of time can suggest that you’re struggling financially. World’s online pre-qualification will not impact your credit if you are not approved, as it is only a soft credit inquiry. We won’t do a hard pull of your credit, which can impact your credit score, until the loan has been approved by you and you decide to move forward.
Ready to apply?
Even if you don’t have perfect credit, don’t stress. We have loans for people with good credit, bad credit and no credit. Even better, your World loan can potentially boost your credit score over time as you make on-time payments. If you’re ready to get back to the good, let us help you get there. Start your application.