12-27-2012 02:04 PM
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?
12-27-2012 06:19 PM
12-27-2012 08:40 PM
12-27-2012 11:03 PM - edited 12-28-2012 12:12 AM
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.
12-28-2012 07:13 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.