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Credit denial letter.

New Contributor

Credit denial letter.

So before I started looking on this site I had applied for auto financing with Ford Motor Credit, but was denied.  For some reason it took over 30 days to get the denial letter. One of the reason on the denial letter was "proportion of loan balances to loan amounts is too high". 

 

Does anyone know exactly what this means?

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New Contributor

Re: Credit denial letter.

Along the same lines, I saw another denial letter I had in the past (I save them) and it said "available credit on bankcards accounts is too low and high credit utilization of open revolving trades report within the last twelve months"

 

Call me stupid, but those both read like the same thing.  Or am I misunderstanding?

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Frequent Contributor

Re: Credit denial letter.


mytime321 wrote:

So before I started looking on this site I had applied for auto financing with Ford Motor Credit, but was denied.  For some reason it took over 30 days to get the denial letter. One of the reason on the denial letter was "proportion of loan balances to loan amounts is too high". 

 

Does anyone know exactly what this means?



This means that you have not paid much on your loan !  Say your loan was 10,000 and you still owe 9,500... Which means  you have only paid 500.00  ( 5 %)  on a 10,000 loan = to your loan bal is too high  for your loan ...


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
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Message 3 of 4
Frequent Contributor

Re: Credit denial letter.


mytime321 wrote:

Along the same lines, I saw another denial letter I had in the past (I save them) and it said "available credit on bankcards accounts is too low and high credit utilization of open revolving trades report within the last twelve months"

 

Call me stupid, but those both read like the same thing.  Or am I misunderstanding?


This means your Credit Line  is too low on your Bankcards and your using to much of your credit limit !!!


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Message 4 of 4