What Is Second-Look Financing?

What Is Second-Look Financing?

Could second-look financing be right for you? Pure Finance can help.

Consumer financing falls under the prime, subprime, and near-prime (also known as second-look financing) categories. The FICO scoring system determines these categories. Lenders use this system to make accurate, reliable, and fast credit risk decisions across the customer life cycle. A score of 670 and up falls under the “prime category” and helps consumers qualify for lines of credit with the best terms. Second-look financing refers to a financial product offered to individuals who almost have an excellent FICO score but fall below the threshold primary finance providers serve and have found themselves unqualified. Here is a look at how second-look financing helps individuals. 

Many People Could Benefit from Second-Look Financing. 

About 30% of the U.S. population falls into the “near-prime” financing category and could benefit from second-look financing. Ironically, many of these individuals have a full-time income. Fortunately, this is where Pure Finance Group can help. Our job is to make lending less complicated for businesses and homeowners. Second-look financing reduces primary credit declines and increases customer purchases. 

Our experts at Pure have the expertise you need to help you get the financing you need for your business. At Pure, we offer the best financing plans that have industry-leading terms lasting as long as fifteen years. You can get deals approved with us that other lenders have turned down. Also, you won’t have to turn away clients because you cannot offer them affordable payment plans. 

Credit Score Improvement Tips

Our seasoned analysts look at many variables besides credit scores to provide a financing solution that closely mirrors that of a primary lender. However, people should still strive to move from the sub-prime category to the prime category by: 

  1. Making payments on time: Payment history is the most critical credit score factor. Paying your credit card and other major bills on time is crucial. Autopay is helpful if you often forget payment schedules. 
  2. Reducing the number of cards you own: You need a credit card to build a credit history. However, that doesn’t mean you need three credit lines. It might be too challenging to pay down so many cards. Opening multiple credit lines too soon results in a hard inquiry on your credit report. 
  3. Decreasing your credit utilization: If you want good credit, your credit utilization should be under 30%. For example, if your available credit is $5,000, your outstanding balances should never exceed $1,500. 

It’s also worth noting that while unsecured loans don’t require any collateral, you’ll still need a good credit score to secure one. 

Contact Pure today if you want to learn more about second-look financing and find the best financing plans to help your customers secure home improvement loans

Pure Finance Group Is Here to Help!

Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our lending services can help you with your home financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any lending services we provide including home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!

This entry was posted on Thursday, July 21st, 2022 at 4:32 pm. Both comments and pings are currently closed.