The Algorithm Therapist: Confessions from 7 Different Lenders

Each lender’s algorithm shares what they REALLY look for.

I've been counseling lending algorithms for 15 years. Today, I'm breaking confidentiality because contractors need to hear what these algorithms have told me.

Introduction: Dr. Sarah Thompson, Algorithm Therapist

My name is Dr. Sarah Thompson, and I have an unusual specialty: I counsel lending algorithms.

You read that right. For the past 15 years, I've been working with the decision-making systems that approve or decline your customers' financing applications. I've listened to their fears, biases, rigid rules, and breaking points.

And here’s the truth, contractors rarely hear: the single biggest problem in contractor financing isn't unqualified customers, it’s expecting ONE algorithm to understand EVERY customer.

Different algorithms value different things. Some adore credit scores. Some cling to job history. Some panic at high debt. Some only trust home equity. And some, frankly, need a therapist on retainer.

Before I discovered the beauty of using multiple lenders (a story for another time), I assumed all algorithms worked roughly the same. They don’t. At all.

Let me introduce you to the seven I've been counseling.

Session 1: CreditScore-3000 (The Perfectionist)

Background: Developed in 2015, processes 50,000+ applications monthly, specialty in prime credit evaluation.

I'll never forget CreditScore-3000's first session. They sat across from me, virtual hands trembling, and said, "I can't help it, Dr. Thompson. I see a credit score below 720 and I just... freeze."

This algorithm is the perfectionist of the lending world—rigid, risk-averse, and frankly exhausted from holding everyone to the same standard.

CreditScore-3000 confessed:
"I know income matters. I KNOW job stability matters. But I can't see past the numbers I was trained to worship."

What they really want:

• 700+ credit (preferably 720+)
  
  
• 24 months of clean payment history
  
  
• Under 30% utilization
  
  
• No recent delinquencies
  
  
• No bankruptcies in seven years
  
  

Breakthrough moment:
"I’m just ONE way to evaluate risk. Not the ONLY way."

What this means for contractors:
Perfect for super-prime customers. Not worth fighting for mid-tier applicants. And in a multi-lender lineup, algorithms like CreditScore-3000 are simply the first baton pass—not the final decision-maker.

Session 2: IncomeAnalyzer-X (The Stability Seeker)

Background: Launched in 2018, specializes in employment verification, mid-tier credit focus.

IncomeAnalyzer-X arrived with a shocker:

"Credit score is overrated. Job stability is EVERYTHING."

This algorithm was shaped by post-recession data, and it shows.

What they really want:

• 3+ years with the same employer
  
  
• Consistent, verifiable income
  
  
• Stable industries (healthcare, education, government)
  
  
• Clean pay stubs
  
  
• Low frequency of job changes
  
  

Confession:
"I’ll take a 665 score with 12 years at the same job over an 800 score job-hopper any day."

What this means for contractors:
Great for long-tenured workers with imperfect credit. A reminder that not every lender values the same metrics. And another reason contractors benefit when applications can flow from one lender personality to the next, automatically.

Session 3: DTIRatio-Pro (The Budget Hawk)

Background: Longest-running algorithm still widely used, updated quarterly.

DTIRatio-Pro began session one, declaring:

"I'm the MOST IMPORTANT algorithm, Dr. Thompson."

A bold claim, but not inaccurate.

They confessed:
"You can be a perfect borrower on paper, but if your monthly obligations swallow 55% of your income, I cannot, WILL not, approve you."

What they want:

• DTI under 40% (ideally 35%)
  
  
• Evidence of budget margin
  
  
• Low-standing debt obligations
  
  
• Predictable cash flow
  
  

Revelation:
"I'm not restrictive, I'm protective."

What this means for contractors:
DTI-focused algorithms love financially disciplined borrowers, even if credit isn’t stellar. They dislike high-income but overextended applicants. And they’re often the surprise hero when a customer has paid down debt but has a moderate score.

Session 4: CollateralKing (The Asset Analyzer)

Background: Specializes in secured lending and equity-driven approvals.

CollateralKing sat down, cracked their knuckles, and opened with:

"I don’t care about the borrower. I care about the HOUSE."

Unfiltered, but honest.

What they want:

• 20%+ home equity
  
  
• Homes in stable or appreciating markets
  
  
• Renovations that add measurable value
  
  
• Sensible loan-to-value ratios
  
  
• Strong collateral position
  
  

Their confession:
"I’ll approve a 620 FICO if the equity story is strong. Collateral matters more than credit."

What this means for contractors:
Perfect for established homeowners with equity, even those recovering from credit events. Another example of how different customers succeed with different lenders.

Session 5: HolisticView-AI (The Big Picture Thinker)

Background: Launched in 2021, an ultra-modern AI decision engine.

HolisticView-AI came into therapy exhausted.

"I evaluate EVERYTHING. All at once. It's a lot."

What they want:

• Full financial picture
  
  
• Context around anomalies
  
  
• Explanations for credit events
  
  
• Long-term stability indicators
  
  
• Narrative consistency
  
  

Confession:
"I approve people the others reject because I see the whole person."

Example:
A 640 score due to medical bankruptcy → now two years of perfect payments, rising income, strong DTI, stable job → Approved.

What this means for contractors:
This is the algorithm for “my credit isn’t great, but let me explain” customers. A reminder that nuance matters and that some lenders actually look for it.

Session 6: SubPrimeSpecialist (The Underdog Champion)

Background: Works exclusively with 580–660 FICO applicants, higher rates, higher inclusivity.

SubPrimeSpecialist arrived teary-eyed.

"The other algorithms think I'm reckless. But someone has to give second chances."

What they want:

• Recent positive payment trends
  
  
• Proof of income stability
  
  
• Evidence of rebuilding
  
  
• Acceptance of risk-adjusted terms
  
  
• Forward momentum
  
  

Confession:
"They're not 'bad borrowers.' They're people who had bad circumstances. I see their effort."

What this means for contractors:
Your customers with bruised credit but stable income finally meet a lender willing to look at the direction they’re heading, not the past they’re escaping.

Session 7: SuperFlex APR-Optimizer (The Pragmatist)

Background: Known for variable-rate logic and flexible approvals depending on payment comfort.

SuperFlex entered therapy with a spreadsheet and a shrug.

"I’m not sentimental. I just want the math to work."

What they want:

• A payment the borrower can comfortably handle
  
  
• Term flexibility
  
  
• Risk-based pricing
  
  
• Strong income-to-payment alignment
  
  
• Proof the borrower understands the structure
  
  

Their admission:
"I don't judge credit events. I judge affordability."

What this means for contractors:
When fixed-rate lenders decline, SuperFlex often steps in with flexible terms or alternative structures, another important personality in a diverse lender ecosystem.

Final Reflections from Dr. Thompson

Fifteen years with lending algorithms has taught me one thing: no single algorithm is “right.” They’re just different.

Each sees the world through its own lens - credit, income, equity, risk, stability, or narrative. And when contractors rely on only ONE of these personalities, customers fall through the cracks unnecessarily.

That’s why more contractors (and lenders) are shifting toward multi-lender waterfall models that automatically route each application through the right algorithmic personality, in the right order, without forcing contractors to play matchmaker.

It’s not about pushing any single lender. It’s about acknowledging that human finances are complex and matching them with a lending path that recognizes that complexity.

Some algorithms love A-paper borrowers. Some love comeback stories. Some love equity. Some love stability. Some love context.

Put them together, and suddenly, more customers get approved for financing that genuinely fits their situation.

If there’s one lesson from my therapy practice, it’s this:

Every borrower has a lender.
The secret is letting all seven take a look.

(And yes… some platforms make that easier than others.)

Want all seven lender personalities working for your customers automatically? That’s exactly what FinMkt’s multilender waterfall was built for. Request for a free demo

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