My FICO score is a 710 and I have been denied by the first 2 places that I have applied. They say the reason is that my revolving debt is too high and I also have a tax lien on my report. My question is if I have too much debt and the lien, why do I have a FICO score of 710? I pay MyFico to get weekly updates on my credit report and score. The day that the tax lien hit my report, my score never changed, but now it is a problem. I am only trying to borrow 10k and I make 60k. Just when I think I have an understanding of how the credit scoring is working, I encounter this scenario. I wasn't even offered a loan with a high rate, as you hear people who are high risk are offered. What am I missing?
Two other factors:
What's the date of the tax lien? State or Federal?
What lenders did you apply with?
A tax lien can be worked around, I know I got a loan with a whopping open one on mine as well as a much smaller paid state one; however, it's highly dependant on lender and their individual underwriting.