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Experian, TransUnion and Equifax Information
1. Q. What does it cost to apply for a line of credit?
A: No application fees are charged. As a matter of fact Vista Business Solutions does not charge any fees until the lines of credit are offered by the lender and accepted by the borrower. At that time the fees are due and payable to Vista Business Solutions, LLC. Because of this policy, it is in your loan consultant's best interest to complete the application process as soon as possible.
2. Q. Do I need to use my primary residence as collateral?
A: No, you do not need to pledge your primary residence as collateral. As a matter of fact the lines of credit are unsecured and no other collateral is required as well.
3. Q. What if my financial statements or my business income taxes are not current?
A: Usually financial documentation is not required meaning that the applications are based on stated income and stated assets. However, if current income returns are provided to the lenders, more money at lower interest rates can be obtained.
4. Q. What are stated income/assets?
A: Stated income/assets are used by business owners to simply state how much they earn and what they own. Those business owners who do not want to disclose their income or assets simply state their income and assets. It must be noted that amounts of stated income/assets should be reasonable according to the circumstances.
5. Q. Do I need a business plan?
A: Our lenders do not require a business plan even for a start up business. However, we at Vista Business Solutions strongly recommend that every business owner should have a business plan whether formal or informal. It is the roadmap to the success of your business!
6. Q. If I don't require collateral, financial documentation, or a business plan, how do I qualify?
A: Our lenders initially base their lending criteria on your credit history and credit scores.
7. Q. What is the minimum credit score requirement?
A: The minimum credit score required is 680 on all three major credit bureaus. However, considering todays’ volatile financial markets, credit scores of at least 720 are preferred by the majority of our lenders. In addition there should be no late payments within the prior two years and no other derogatory items such as collections, settlements, foreclosures, tax liens or bankruptcies. Recent inquiries should be no more than two per month per Credit Bureau for the preceding six months and the current balances of your credit cards should be no more than 35% of their total limits.
8. Q. What are credit scores?
A: A credit score is determined by the following factors: payment history, the amount of credit established, when it was established, number of credit lines, usage of your credit lines, length of time at your current residence, employment history and, last but not least, derogatory items if any.
The three major reporting agencies, Experian, TransUnion and Equifax collect your credit information from public records, creditors and other reliable sources. This information is then made available to prospective creditors, landlords, employers, and insurance carriers (as allowed by law). The three agencies do not have the authority to grant or deny credit.
9. Q. How long does the process take?
A: Assuming that there are no issues with your credit, you should have the funds available no later than 35 days from completion of the application. In some cases, if there is a strong application, funds could be available in as little as 15 days.
10. Q. What is auto approval?
A: Auto approval occurs when the individual's credit score is very strong (usually 750+) and the underwriters are comfortable enough to waive the regular underwriting process. (Very rare in today’s environment)
11. Q. What are the interest rates?
A: Interest rates usually range from Prime +1 to Prime +4 for businesses in operation for more than two years. Interest rates for start ups can be higher (as high as Prime +9). Remember that interest is only paid when the funds are used!
A: No application fees are charged. As a matter of fact Vista Business Solutions does not charge any fees until the lines of credit are offered by the lender and accepted by the borrower. At that time the fees are due and payable to Vista Business Solutions, LLC. Because of this policy, it is in your loan consultant's best interest to complete the application process as soon as possible.
2. Q. Do I need to use my primary residence as collateral?
A: No, you do not need to pledge your primary residence as collateral. As a matter of fact the lines of credit are unsecured and no other collateral is required as well.
3. Q. What if my financial statements or my business income taxes are not current?
A: Usually financial documentation is not required meaning that the applications are based on stated income and stated assets. However, if current income returns are provided to the lenders, more money at lower interest rates can be obtained.
4. Q. What are stated income/assets?
A: Stated income/assets are used by business owners to simply state how much they earn and what they own. Those business owners who do not want to disclose their income or assets simply state their income and assets. It must be noted that amounts of stated income/assets should be reasonable according to the circumstances.
5. Q. Do I need a business plan?
A: Our lenders do not require a business plan even for a start up business. However, we at Vista Business Solutions strongly recommend that every business owner should have a business plan whether formal or informal. It is the roadmap to the success of your business!
6. Q. If I don't require collateral, financial documentation, or a business plan, how do I qualify?
A: Our lenders initially base their lending criteria on your credit history and credit scores.
7. Q. What is the minimum credit score requirement?
A: The minimum credit score required is 680 on all three major credit bureaus. However, considering todays’ volatile financial markets, credit scores of at least 720 are preferred by the majority of our lenders. In addition there should be no late payments within the prior two years and no other derogatory items such as collections, settlements, foreclosures, tax liens or bankruptcies. Recent inquiries should be no more than two per month per Credit Bureau for the preceding six months and the current balances of your credit cards should be no more than 35% of their total limits.
8. Q. What are credit scores?
A: A credit score is determined by the following factors: payment history, the amount of credit established, when it was established, number of credit lines, usage of your credit lines, length of time at your current residence, employment history and, last but not least, derogatory items if any.
The three major reporting agencies, Experian, TransUnion and Equifax collect your credit information from public records, creditors and other reliable sources. This information is then made available to prospective creditors, landlords, employers, and insurance carriers (as allowed by law). The three agencies do not have the authority to grant or deny credit.
9. Q. How long does the process take?
A: Assuming that there are no issues with your credit, you should have the funds available no later than 35 days from completion of the application. In some cases, if there is a strong application, funds could be available in as little as 15 days.
10. Q. What is auto approval?
A: Auto approval occurs when the individual's credit score is very strong (usually 750+) and the underwriters are comfortable enough to waive the regular underwriting process. (Very rare in today’s environment)
11. Q. What are the interest rates?
A: Interest rates usually range from Prime +1 to Prime +4 for businesses in operation for more than two years. Interest rates for start ups can be higher (as high as Prime +9). Remember that interest is only paid when the funds are used!
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