Help! Denial Reasons For a Loan....

[JustineJoy]

I'm hoping someone can help me out here. I'm at a loss. When I signed up for MyFico a month ago, it told me my score was around 570, since I've been alerted that it keeps jumping up, albeit- slightly. It says that I'm around 618 now. However, whenever a bank or a dealer pulls it, it's well below- and always a different number. 595, 570, 575.

I've applied for several auto loans recently and mostly been denied (as expected). I did receive an offer from capital one at 18%, which I can deal with until my credit improves and I can refi. That brings me to how exactly to improve my credit... I'm at a loss as I just received a denial from Bank of America, whom I have my checking, savings and credit card with. I was declined for the following reasons:

Lack of recent loan installment information: My student loans are currently in deferment, and those are the only loans I have

Serious delinquency or collection filed: I have one item that shows as collection from 2005, which says it comes off in September 2013

Number of accounts with delinquency: I only see the one above

Too few accounts currently paid as agreed: The only late payment that shows is one 90 day late on a student loan from last year. I was in the process of moving and forgot about it. Everything else is paid on time, in full every month.

Too many inquiries in the last 12 months: I've only applied for several auto loans within the same week, no credit cards or anything else.

If anyone can point me in the right direction on how to fix this, when I'm already paying everything in full and on time- I'd appreciate it!

[sccredit]

Have you seen a dealer?  With sufficient income you should be able to get an auto loan, albeit at a higher rate than you would like.

[JustineJoy]

I have seen a dealer. I'm making roughly 75K a year. Less after taxes, obviously. The rate the dealer could negotiate was only 18.8%, which like I said... is fine for now. However I want to refinance ASAP which will be next to impossible if my credit doesn't improve. I'm having a hard time figuring out what I can do to improve it, as I'm paying everything on time, my credit cards are paid in full monthly, and my credit seems to get worse.

[USF813]

You might just need to bite the bullet for six months and take the 18%. In the meantime, try to join a credit union and refinance after six months.

[sccredit]

What utilization is reporting monthly?  You may be paying in full after the statement date but it may be showing maxed on your report AS OF the statement date.  

Negatives will age off and as they do they will effect your score less and less.  Sometimes time is the answer.  

[Ditovera]

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@JustineJoy wrote:

I'm hoping someone can help me out here. I'm at a loss. When I signed up for MyFico a month ago, it told me my score was around 570, since I've been alerted that it keeps jumping up, albeit- slightly. It says that I'm around 618 now. However, whenever a bank or a dealer pulls it, it's well below- and always a different number. 595, 570, 575.

I've applied for several auto loans recently and mostly been denied (as expected). I did receive an offer from capital one at 18%, which I can deal with until my credit improves and I can refi. That brings me to how exactly to improve my credit... I'm at a loss as I just received a denial from Bank of America, whom I have my checking, savings and credit card with. I was declined for the following reasons:

Lack of recent loan installment information: My student loans are currently in deferment, and those are the only loans I have

Serious delinquency or collection filed: I have one item that shows as collection from 2005, which says it comes off in September 2013

Number of accounts with delinquency: I only see the one above

Too few accounts currently paid as agreed: The only late payment that shows is one 90 day late on a student loan from last year. I was in the process of moving and forgot about it. Everything else is paid on time, in full every month.

Too many inquiries in the last 12 months: I've only applied for several auto loans within the same week, no credit cards or anything else.

If anyone can point me in the right direction on how to fix this, when I'm already paying everything in full and on time- I'd appreciate it!

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This is a simple matter of AUTO enhanced FICO vs You regular FICO score here. If you have never had an auto loan in the past it is very possible dealer might pull a lower fico score since they use an auto enhanced version of your score. My advice to you would be if you belong to a credit union is to go and ask for a car loan. They use your regular fico score so they should pull the same scores as the fico website which according to you is in the low 600's. Once you get your approval for whatever apr % they approved you, then you take that to the auto dealer and have him finance you, only if he can beat the Credit unions/ bank apr% rate.  In addition having a higher down payment can lower your apr with dealers. 

When buying a car negotiate with "walk out the door" price as well. That is cost of vehicle, tax,title, registration and warranty if applicable.

[tonyjones]

I wonder if I would get approved for an auto loan, the car I want is $19,000, my TU FICO score is 670 right now according to MyFico.

[tonyjones]

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@JustineJoy wrote:

I have seen a dealer. I'm making roughly 75K a year. Less after taxes, obviously. The rate the dealer could negotiate was only 18.8%, which like I said... is fine for now. However I want to refinance ASAP which will be next to impossible if my credit doesn't improve. I'm having a hard time figuring out what I can do to improve it, as I'm paying everything on time, my credit cards are paid in full monthly, and my credit seems to get worse.

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How much is the loan your asking for?

[JustineJoy]

I pay off the full balance weekly. I like using the card for everything, as I get reward points. I tried calling my bank (BofA) to get the reporting date, however they said that information is unavailable. Is that typical? Thank you for the help!

[sccredit]

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@JustineJoy wrote:

I pay off the full balance weekly. I like using the card for everything, as I get reward points. I tried calling my bank (BofA) to get the reporting date, however they said that information is unavailable. Is that typical? Thank you for the help!

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You don't want the reporting date, you want the statement closing date.