Tag: affordability
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Why Loans Aren’t Instant — Yet
That PSOJ Masterclass I attended 2 weeks ago gave me a lot to think about. During a discussion about the mission of Tiddle LLC, we touched on loan turnaround time. Someone mentioned that because she was pre-approved with her bank, getting a loan took only 24 to 48 hours. Relatively speaking, that’s excellent. Yet it…
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What is Income Instability
When a bank decides whether to give someone a loan, it wants to know more than how much money the person earns. It also wants to know how stable that income is. This is called income stability. Income stability means how reliable and consistent a person’s earnings are over time. Someone who receives regular pay…
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What Banks Look At Before Giving You a Loan
When banks decide whether to give someone a loan, they want to know one thing: Can this person really afford it? To help answer that, they use affordability ratios — simple comparisons between income (how much money you earn) and debt (how much money you owe people). 1. Debt-to-Income This shows how financially stretched someone…