topic Re: Lightstream Pre-Approval Denial -- Why? in Personal Finance

Lightstream Pre-Approval Denial -- Why?

Anonymous — Wed, 23 Oct 2019 07:58:52 GMT

Applied on a third-party loan comparison soft pull website but Lightstream shot me down.
Equifax: 770
Amex Bonvoy: $5,588
Amex Cash Magnet: $16,609
Citi Plat. Mastercard: $35,039

USB Flexperks: $14,546
Toyota Lease: $6,948
Utilization: 30%

Reasons:
1) Proportion of balance to credit limits too high on bank/other revolving accts
2) Proportion of loan balances to loan amounts is too high

3) Amount owed on revolving account is too high
4) Too many accounts with balances

However, SoFi pre-approved me for $100K with Experian 751.

However, at next cycle update, I will have:

Amex Bonvoy: $2,500
USB Flexperks: $17,350
Barclaycard: $13,500
Toyota Lease: $6,948
Utilization: 16%

Will Lightstream approve me at that time do you think?

Thank you!

Re: Lightstream Pre-Approval Denial -- Why?

KLEXH25 — Wed, 23 Oct 2019 11:02:36 GMT

@Anonymous wrote:
Applied on a third-party loan comparison soft pull website but Lightstream shot me down.
Equifax: 770
Amex Bonvoy: $5,588
Amex Cash Magnet: $16,609
Citi Plat. Mastercard: $35,039
USB Flexperks: $14,546
Toyota Lease: $6,948
Utilization: 30%

Reasons:
1) Proportion of balance to credit limits too high on bank/other revolving accts
2) Proportion of loan balances to loan amounts is too high
3) Amount owed on revolving account is too high
4) Too many accounts with balances

However, SoFi pre-approved me for $100K with Experian 751.

However, at next cycle update, I will have:

Amex Bonvoy: $2,500
USB Flexperks: $17,350
Barclaycard: $13,500
Toyota Lease: $6,948
Utilization: 16%

Will Lightstream approve me at that time do you think?

Thank you!

Hi OP. Welcome to the boards! Can you list the limits after each card balance? Idividual utilization is just as important (if not more) as total utilization across cards. Also, it looks like you're not listing all cards on each list, because the top list doesn't match the bottom list. Please list ALL cards and loans, regardless of balance. If it's a $0 balance, you can list as $0 / $10,000 (CL).

Also, are the cards listed Fico scores? Are these the scores that the lenders are listing from your soft pull? Keep in mind that if you're paying down balances, it may take a few weeks for these new balances to report and for scores to update. You need to wait until each card issuer reports to the CBs, otherwise, nothing will change when you apply again.

Re: Lightstream Pre-Approval Denial -- Why?

CreditInspired — Wed, 23 Oct 2019 22:28:05 GMT

Agree 100% with Klexh25

IMHO, your balances are still too high even if total UT is 16%. Need to get it down to less than 8.9% and also need to get the majority of your cards to $0.

Re: Lightstream Pre-Approval Denial -- Why?

Anonymous — Thu, 24 Oct 2019 07:54:50 GMT

@Imsmedley since SoFi approved you is there any reason in particular that you really want Lightstream? Lightstream claims in their marketing that their loans are for people with good credit. They have a brief explanation on their web site of what that means but as you may already know it's vague and not helpful. That said I'm guessing their underwriting is a bit stricter than SoFi or some of the other offers you received on the loan marketplace site.

You are trying to get a loan to pay down your debts? But they want you to pay down your debts to get a loan.

Re: Lightstream Pre-Approval Denial -- Why?

Anonymous — Thu, 24 Oct 2019 20:49:37 GMT

You have to recall Lighstream is owned by Suntrust. Suntrust here loans on nothing but 800 to 850 credit and that has to be aged for years.

They really don't wont loan to any one who 1) might need a loan 2) has the slighest and I do mean slighest chance of default even 1% chance is to high.

Re: Lightstream Pre-Approval Denial -- Why?

catman60 — Tue, 29 Oct 2019 18:05:21 GMT

Lightstream has seemingly begun to give greater weight to assets in their underwriting process. I applied a couple of years ago without providing that information. This week, I applied for a new loan and they capture stocks, retirement, cash on hand. No difficulty in gaining approval and not sure if that's the reason but it is something to be aware of.

Re: Lightstream Pre-Approval Denial -- Why?

joltdude — Wed, 30 Oct 2019 01:59:16 GMT

Lightstream/Suntrust are ultra-conservative almost to the point they dont lend to folks who need it...

Fortunately you have an offer from SoFi and i'd go with that...

-J

Re: Lightstream Pre-Approval Denial -- Why?

joltdude — Wed, 30 Oct 2019 02:23:58 GMT

Ill take a guess as to why someone wants a Lightstream loan... they have amazing rates.. but they arent amazing if you cant get the loan.....

Do you have any Credit Union accounts? That *might* be an option depending on the CU... Because some of them are as bad or not worse than Suntrust at letting go of the purse strings... And as some have mentioned.. try to get your util down... for better offers for loans.....

if you clear off some cards you might be able to do some shuffling as well to reduce your aprs on part of the balances as well.. There are also companies that deal with paying off debt exclusively.. (Payoff) or things like Tally .... (a meta-credit card / basically a PLOC for paying off credit cards but its automatic.... but it will likely not be enough for your debt...

-J