Credit denied even with good score
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.
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..
Is that true?? 680 isn't good enough to get a CC??? My biggest c
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...
My own personal opinion is that people have been conned into bel
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 <10 DAYS LATE MUST MAKE 6 CONSECUTIVE ON-TIME PMTS <10 DAYS LATE PREVIOUS LOAN DISCHARGED THROUGH BANKRUPTCY 7 PREVIOUS LOAN WAS A CHARGEOFF ACCOUNT / COLLECTION NEED TO PAY DOWN CURRENT BALANCE ON OPEN ACCOUNT PHONE #(S) PROVIDED ON APPLICATION DISCONNECTED PREVIOUS LOAN WAS LAWSUIT/LEGAL ACCOUNT PREVIOUS LOAN WAS NOT REPAID TOO SHORT A PERIOD OF RESIDENCE TEMPORARY OR IRREGULAR RESIDENCE UNABLE TO VERIFY RESIDENCE NO CREDIT FILE FOUND INSUFFICIENT CREDIT FILE CURRENT OR PAST DELINQUENT CREDIT OBLIGATIONS "GARNISHMENT,ATTACHMENT,FORECLOSURE OR REPOSSESSION" BANKRUPTCY PREVIOUS LOAN EXPERIENCE CIVIL JUDGEMENT(S) / COURT ORDERED PAYMENTS EXCESSIVE CHARGEOFFS/WRITEOFFS/COLLECTIONS ACCTS ATTACHMENT/LEVY/GARNISHMENT/TAX LIEN SSN # USED NOT ISSUED BY SOC. SEC. ADMINISTRATION CANNOT REFINANCE PER IL STATUTES (38 ADM 110.370b) FILE EXISTS; NO TRADELINES ESTABLISHED IN BUREAU TOO MUCH ADVANCE UNABLE TO MEET STIPULATIONS REQUIRED BY GRANTOR CANCELLED/VOIDED LOAN DOCUMENTS DUE TO NO SHOW LAST LOAN COLLECTED BY WAGE ASSIGNMENT (DEL > 40) APPLICATION WITHDRAWN BY CUSTOMER CAPACITY TO ENTER INTO BINDING CONTRACT |
