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Well, I'm in a situation. I was denied personal loan even when my score is 680+.

Isn't 680 credit score good enough to get loan? I think the other lenders too would decline my loan application because of this denial, am I right?

Also, can anyone enlighten me on the reason of denial?




680 is no longer a "good" score it is "fair" harsh as it sounds.. You could buy a home with that or a car( with substantial down) but most probably not get a CC.. thier criteria has gotten very tight..

Sub: #1 posted on Thu, 12/17/2009 - 07:02

Dana De Dana De

(Posts: 88 | Credits: )

Is that true?? 680 isn't good enough to get a CC??? My biggest cripplre is no revolving credit. So how are people supposed to rebuild?

This whole FICO system is so frustrating...

Sub: #2 posted on Thu, 12/17/2009 - 20:35

Unregistered


My own personal opinion is that people have been conned into believing that their credit score plays more of a role than it really does. (As a loan underwriter, I don't even look at people's credit scores, because they are meaningless to me). Credit scores were designed basically to eliminate the role of a traditional loan underwriter, in order to make credit approvals more automated without human involvement.

The reality is that credit cards may be the only type of grantors that go purely by a credit score. The rest of the lenders out there (including those that offer "personal loans") actually "underwrite" the loan by evaluating several factors, some of which don't even relate to your credit at all.

I tend to look at a person's length of employment as one of my key factors. I generally don't approve people who have been on their current job less than a year, or if they've been at their current job 1-3 years with previous employment less than 2 years. I also look at length of residence as another key factor.

Without knowing your situation, it's hard to assess what factors may have prevented you from being approved. The lender who turned you down will be required to send you a notice of adverse action indicating specific reasons for credit denial.

Anytime I turn down a loan applicant, we have codes that I have to put into the computer as to the reasons for denial. Just for S#!ts and giggles, below is a listing from my computer of all the various reasons we might turn a person down:

Quote:

PROPORTION LOAN BAL's TO LOAN AMOUNTS TOO HIGH
PROPORTION OF BALANCES TO CREDIT LIMITS TOO HIGH
AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH
TIME SINCE DELINQUENCY IS TOO RECENT OR UNKNOWN
LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED
LACK OF RECENT INFORMATION ON REVOLVING ACCTS
LACK OF RECENT INFORMATION ON CREDIT ACCOUNTS
NUMBER OF ACCOUNTS WITH DELINQUENCY
RECENT DEROGATORY PUBLIC RECORD OR COLLECTION
TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED
"SERIOUS DELINQUENCY, AND PUBLIC RECORDS/COLLECTION"
NUMBER OF DEROGATORY PUBLIC RECORDS FILED
DEROGATORY PUBLIC RECORD OR COLLECTION FILED
APPROVAL RESCINDED / NOT ELIGIBLE FOR REAPPROVAL
BANKRUPTCY DISMISSED >> DEBTS NOT DISCHARGED
BANKRUPTCY FILING >> NOT YET DISCHARGED
EXCESSIVE DELINQUENCY SINCE BANKRUPTCY
REPEAT FILINGS - # OF TIMES FILED BANKRUPTCY
CREDIT APPLICATION INCOMPLETE
INSUFFICIENT CREDIT REFERENCE
UNABLE TO VERIFY CREDIT REFERENCES
WOULD RECONSIDER W/ CO-BORROWER AND/OR COLLATERAL
INSUFFICIENT DOWN PAYMENT
DON'T GRANT TERMS OR CONDITIONS REQUESTED
INSUFFICIENT TRADE EQUITY - NEGATIVE VALUE
TEMPORARY OR IRREGULAR EMPLOYMENT
UNABLE TO VERIFY EMPLOYMENT
LENGTH OF EMPLOYMENT
FUTURE EMPLOYMENT IN DOUBT
INSUFFICIENT INCOME
UNABLE TO VERIFY INCOME
EXCESSIVE OBLIGATIONS
INADEQUATE COLLATERAL FOR AMOUNT(S) REQUESTED
IDENTITY/SSN# MISMATCH - UNABLE TO VERIFY IDENTITY
MATERIALLY FALSE AND/OR MISLEADING STATEMENTS
LACK OF RECENT CREDIT/PAYMENT HISTORY
DELINQUENT REAL ESTATE TAXES
EXISTING MORTGAGES MUST BE CURRENT TO CONSIDER
NUMBER OF RECENT CREDIT INQUIRIES IN LAST 60 DAYS
MULTIPLE WC/PI LOANS OPEN - CAN'T ADVANCE ADDT'L
MONTHLY OBLIGATIONS EXCEED 50% OF GROSS INCOME
APPLICANT DID NOT AUTHORIZE CREDIT INQUIRY
NEVER SHOWED UP FOR LOAN APPOINTMENT
DOESN'T DEMONSTRATE A WILLINGNESS TO REPAY DEBTS
OUT OF STATE
MUST MAKE AT LEAST 6 CONSECUTIVE ON-TIME PAYMENTS
NEVER MADE 1ST PAYMENT ON PREVIOUS LOAN
MUST MAKE 3 CONSECUTIVE ON-TIME PMTS 40)
APPLICATION WITHDRAWN BY CUSTOMER
CAPACITY TO ENTER INTO BINDING CONTRACT

Sub: #3 posted on Thu, 12/17/2009 - 22:38

DebtCruncher DebtCruncher
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