Reply
Member
chiquita203
Posts: 8
Registered: ‎05-20-2013
0

wells fargo denies business loan

can anyone give me some insight on their reasoning.  i applied for a business loan and everything looked positive until they pulled my credit.  they pulled the experian report which reads as a FICO 700.  they told my business consultant that my credit was bad!  grant it, i do have some negatives as late but no BK or liens.  these negatives were when i first went into business for myself and had to adjust my financial budget when my income decreased from $120,000 to $69,000.  all is good now.  business grosses $550+ and was looking to expand and relocate to bigger location.  could they simply be looking at my negatives from years past (2008-2010)?  my only debt includes, mortgage, student loans, and CC that get paid off every month.  by the way, i financed my business myself at the beginning and thus have absolutely no business debt!

any input would be appreciated.

 

Epic Contributor
Creditaddict
Posts: 22,093
Registered: ‎10-23-2007
0

Re: wells fargo denies business loan


chiquita203 wrote:

can anyone give me some insight on their reasoning.  i applied for a business loan and everything looked positive until they pulled my credit.  they pulled the experian report which reads as a FICO 700.  they told my business consultant that my credit was bad!  grant it, i do have some negatives as late but no BK or liens.  these negatives were when i first went into business for myself and had to adjust my financial budget when my income decreased from $120,000 to $69,000.  all is good now.  business grosses $550+ and was looking to expand and relocate to bigger location.  could they simply be looking at my negatives from years past (2008-2010)?  my only debt includes, mortgage, student loans, and CC that get paid off every month.  by the way, i financed my business myself at the beginning and thus have absolutely no business debt!

any input would be appreciated.

 


I hate Wells and this just adds to it.

Who do you do your banking for personal and business with? (If it's Wells and you are pushing over $500k through those checking accounts and they won't give you any loan that is a RED FLAG you should move your banking ASAP!!)

Do you have any credit unions in the area that offer business accounts... you need to work with a place that can handle things on the local level not some terrible underwriting in a different state that doesn't care about your relationship with them.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Member
chiquita203
Posts: 8
Registered: ‎05-20-2013
0

Re: wells fargo denies business loan

That's what I'm currently doing.  Will speak with a credit union tomorrow morning.  Funny though b/c I had actually initiated an SBA loan and was told that their regular bank business loan process would be a better option.  Thanks for your input.  

 

Contributor
stengiz
Posts: 95
Registered: ‎04-02-2013
0

Re: wells fargo denies business loan

Same here almost 4 years in business,  doing merchant processing thru them. Good financials , all they offered was a secured card. I already opened an account at a credit union. Moving everything there

last app December 2 2014
Member
chiquita203
Posts: 8
Registered: ‎05-20-2013
0

Re: wells fargo denies business loan

i just got letter of rejection in the mail.  they determined my FICO as 670 through Experian Fair Isaac Model Risk Model v2.  don't understand why the score is so different from what "myFico" scored as a 700.  either way, spoke with banker today and gave me a few reasons as to slow pays from 3 years ago.  he did say however that an SBC loan would still be an option.  i went ahead and paid my initial lease contract to get buildout started.  i can actually fund this expansion process but didn't want to slim my business funds; that's why the loan.  we'll see where this leads.

Epic Contributor
Creditaddict
Posts: 22,093
Registered: ‎10-23-2007
0

Re: wells fargo denies business loan


chiquita203 wrote:

i just got letter of rejection in the mail.  they determined my FICO as 670 through Experian Fair Isaac Model Risk Model v2.  don't understand why the score is so different from what "myFico" scored as a 700.  either way, spoke with banker today and gave me a few reasons as to slow pays from 3 years ago.  he did say however that an SBC loan would still be an option.  i went ahead and paid my initial lease contract to get buildout started.  i can actually fund this expansion process but didn't want to slim my business funds; that's why the loan.  we'll see where this leads.


might be better to go directly to SBA and let them shop the loan around to the banks for you so you don't have to deal with Wells BS and possibly get higher rates.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Regular Contributor
tpatterson2k9
Posts: 155
Registered: ‎04-04-2011
0

Re: wells fargo denies business loan

Chiquita,

 

Wells Fargo tends to be a more conservative lender than most. Though I can't speak for exactly why they denied you, it could be because your total revolving credit available was very low (less than 25% total available) or that there might be something lurking on your Dun and Bradstreet business credit report that is raising a red flag with them (open tax liens, slow pays, etc). Because you have never done any business leases or loans under the company before, they could be auto-declining you because you have no PayNet score generated.

 

PayNet is an entirely different loan scoring system for businesses that tracks your payment history on all your business loans and leases. It does not keep track of your trade payments to suppliers or business credit cards. Only direct lenders that are willing to report to PayNet are able to get access to it and pull a company's PayNet score.


Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
Current Scores (myFICO 4/4/11): 768 (EQ)
Goal Scores: 800


Take the FICO Fitness Challenge

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
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}