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Frequent Contributor
danny4l
Posts: 299
Registered: ‎05-24-2012
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Will you automatically be denied a loan or a credit card if you have a derogatory or late on file?

If you want to get a credit card or apply for a small loan to build your credit history, will you automatically be denied if you have derogatories like collection accounts, judgments and 90 and 120 day lates on your CR?

 

 

Regular Contributor
hdrider07
Posts: 207
Registered: ‎03-21-2012
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

If you have all that on your report then most likely the answer would be yes.

Frequent Contributor
danny4l
Posts: 299
Registered: ‎05-24-2012
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

that wasn't my question. 

 

Even if you have a fair credit score, if you have a collection or a judgment can you be automatically denied?

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golo
Posts: 364
Registered: ‎04-04-2012
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

Nobody knows for sure,you'll have to bite the bullet and apply.It depends on the creditor.

Read and read...and then....read some more....


Starting Score: 603 myfico EQ,648 myfico TU april 2012
Current Score: 608 myfico EQ
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Established Contributor
2NE1
Posts: 999
Registered: ‎12-06-2011
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

[ Edited ]

when I applied for a car loan late 2010 I had one unpaid judgment, four CO accounts, three of which paid/settled. Two TL of Student Loans reporting 60+, 90+ days late. Not one bank wanted to help me finance a car. I had to use a cosigner at that point (even though my income was way higher then cosigner). I was approved by CapOne but with an appalling 26.99% APR!

At the time I didn't care to bother applying for credit cards so I can't make comments about it. However, after exactly ONE year of paying my car loan on time I started receiving CapOne pre-approval offers, I qualified for their platinum and was approved with a judgment still showing unpaid (but it was satisfied a couple of days before, just not reflecting yet) as well as one CO still showing unpaid.

 

EDIT: I forgot to mention that I also had two collections (Paid and Settled) non-medical related.

 

Also, if you really need a Personal Loan or Credit Card, try your local CU. When I signed up at my local CU they were able to refinance my car before I started rebuilding my credit. I haven't asked yet but I'm pretty sure that I could qualify for a personal loan and or CC from them as well. Good luck!


Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
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Ironhide1189
Posts: 23
Registered: ‎06-08-2012
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

 

This depends... Some institutions will allow a SMALL charge off on your report because let's face it, nobody has perfect credit.. now with that said, it also depends on what the charge off consists of.. Is this a medical charge off? Or a credit card? Banks will usually let a medical charge off slide more so than a credit card charge off because when you go to the hospital or receive treatment for a certain ailment you’re usually bombarded with a stack of bills and sometimes small bills fall between the cracks! So, generally anything under 100 dollars doesn’t phase a lender in terms of charge offs as long as its only 1! Now, anything over 100... Yes, you still can get approved if it is over 100 BUT they will generally ask for explanation of why it became a charge off... anything over 500 and you'll certainly have a problem.. Hope this has helped...

Fico as of 06/08/2012 - 742

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In My Wallet: Amex Centurion, Chase Freedom, Capital One Venture (Long Story Haha)
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proudnavymom
Posts: 240
Registered: ‎11-29-2008
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

 I have several collections (ranging from 17-29 depending on which CR you look at--mostly medical) and CO's (5 CC) on my CR, but no lates showing or judgments.    In July 2011 I got approved for a Capital One Secured CC.  I believe I was to pay a $99 fee for a $300 l limit, but I sent in an additional security deposit so my limit is now $601.  In November 2011 I was approved for a car loan through Crescent Bank.  I think my interest rate is 16%.  My situation might have been helped by the fact that I paid off a car about 3 years ago with no lates and had 3 years of ontime payments, no lates on the car I traded in. I have quite a few accounts from loans from finance companies also, that have no late payments.   I think it just depends on what derogatories you have along with how long ago they were and what positive accounts you have.  

Starting Scores TU 7/30/09 FICO 493 EQ 9/5/10 FICO 477 EX 11/14/2011 (lender pull) 575
Current Scores TU 5/31/2014 FICO 671 EQ 7/5/14 FICO 667 EX 5/31/2014 658 FICO
Goal Scores 700 across the board
Valued Contributor
Repo-ed
Posts: 2,954
Registered: ‎02-09-2012
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Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil


danny4l wrote:

If you want to get a credit card or apply for a small loan to build your credit history, will you automatically be denied if you have derogatories like collection accounts, judgments and 90 and 120 day lates on your CR?

 

 


For a CC (secured), your best-bet is cap1 or orchard

 

For a personal loan, your best chance of getting approved, is through a local credit union.

 

Either way, you are neither automatically denied or not based on the info you gave.

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil


danny4l wrote:

that wasn't my question. 

 

Even if you have a fair credit score, if you have a collection or a judgment can you be automatically denied?


I have a good score considering I still have 3 collection accounts, a judgment and a tax lien showing. All paid of course.

 

As you can see, all my FICOs are around 700ish, I just closed on a house, and I recently was able to aquire a couple additional credit cards, although I was denied for prime cards. I was able to get a Cap1 Rewards w no annual fee w/ a 2000 limit.

 

So yes. You can get approved with negative factors. Getting approved for WHAT depends on what you are trying to accomplish and how OLD those negative factors are.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Valued Member
stevehbold
Posts: 47
Registered: ‎07-15-2011
0

Re: Will you automatically be denied a loan or a credit card if you have a derogatory or late on fil

i have 1 CO unpaid to BOA and 1 paid collection and some 90.120 day lates from student loans. They are all pretty old at this point and will fall off in about a yr or so. BUt i have been recently approved in march from discover more and barclays apple . not the best cars out there, but they are enough for me at this point. So it is possible, my current score here on myfico is 686 TU and 682 EQ EX FAKO 669.

USAA Amex 0/4000 USAA MC 0/4000k
Barclays apple 0/2000- recon'd from 1300 to 2k
Discover More 250/1700cl Capital One 0/500cl Amazon Store 0/600 Orchard 0/320 Paypal Smart Connect 0/300 Amex zync 500 auto pay
Ex 699 7/12 CU pull -auto loan beacon 5
EX FICO from AMEX-657
Eq 688 6/12
Tu 679 6/12

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