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Score 710 and denied auto loan

New Member

Score 710 and denied auto loan

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?

Message 1 of 6
5 REPLIES
Valued Contributor

Re: Score 710 and denied auto loan

Please provide more details.

Ever had an auto loan?
Current debt?
AAoA?
Any late payments?

A tax lien is a pretty serious thing in the eyes of a lender.
As of 2017, rebuilding...
Message 2 of 6
Valued Contributor

Re: Score 710 and denied auto loan

I had 80% util and a score of 716. I found it very hard to get any type of loan with that util that high. I paid it down to under 30% and my scores jumped! I don't know what numbers you have, but high debt sure makes it difficult to get a loan.

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 832 EX 783 TU 816
App free since 9/15/15
Message 3 of 6
Moderator

Re: Score 710 and denied auto loan

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.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 4 of 6
Valued Contributor

Re: Score 710 and denied auto loan

When I applied with Acura Financial, I had a Auto enhanced score of 724 and they approved me for tier 1 lease financing. My total Util was around 17% when I applied. And I had another car loan reporting never late for 4 years. I have no tax liens. I heard tax liens are worse than bankruptcy. What lender were you denied through? Was it for financing or a lease?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 5 of 6
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New Member

Re: Score 710 and denied auto loan

Does your tax lien say "Open Tax Lien" or "Paid/Released Tax Lien"?

 

 

 

Message 6 of 6