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
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO