topic Re: Loan application declined with a score of 740! in Rebuilding Your Credit

Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 12:49:38 GMT

Well, looks like the score by itself isn't enough.

I was delcined by up2drive and apparently they pulled Experian Fako, which is currently showing 740.

The reason I think, is because my credit file is too thin. I have one revolving MAcys card and one Chase Visa, for which I applied in November. Here's what they listed as the Key factors that adversely affected my credit score according them:

Length of time accounts have been established (Credit history is 4 yrs and 6yrs)

Time since most recent account opening is too short

Lack of recent installment loan information (I have a student loan)

Number of accounts with delinquency (I had 2 lates with Cap1 and BoA over two years ago, I surely didn't think this will still have an effect on my loan application)

Too many inquiries last 12 months ( I had 2 inquiries only, Chase and Verizon for my cell phone)

Are they serious??

My credit is rated by experian as "excellent"!

I spent the last 9 months working on removing most of the lates from my previous credit cards, (I have 4 closed accounts) I'm wondering then if I should ask to have them reopen. I really would have never thougt they would decline the application because of the score. My income maybe.. I was asking for a loan of 16000 with an income of 24000. I thought that coud be the only reason.. well, I clearly don't know how this loan thing works.

Should I try a personal loan? Or do you guys think I will still have the same issue?

Re: Loan application declined with a score of 740!

proudnavymom — Sat, 18 Feb 2012 02:54:52 GMT

Have you called or talked to them and asked them to reconsider? Sometimes not everything shows on paper, and I have heard others say after first being declined, when asked to reconsider, have been successful.

Re: Loan application declined with a score of 740!

laz98 — Sat, 18 Feb 2012 02:55:18 GMT

You should get your real scores from this site. Your score is what we call a FAKO score, something that is not widely used by lenders. Your real FICO scores could be higher or lower. There's no way to tell without actually checking them.

Re: Loan application declined with a score of 740!

LIGHTNIN — Sat, 18 Feb 2012 02:55:54 GMT

For an auto loan, I would suggest looking into a Credit Union.

They have the best rates for auto loans.

Re: Loan application declined with a score of 740!

MarineVietVet — Sat, 18 Feb 2012 03:00:43 GMT

@Anonymous wrote:

I was delcined by up2drive and apparently they pulled Experian Fako, which is currently showing 740.

Hi there.

Are you certain this was an EX PLUS score? If so this is the first time I've seen a PLUS score used. This is from the EX website: Calculated on the PLUS Score model, your Experian Credit Score indicates your relative credit risk level for educational purposes and is not the score used by lenders

Did you get a letter specifically saying it was a PLUS score?

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 04:05:43 GMT

THAT is my score from Experian FAKO.

As a matter of fact, last time I checked on Wedenesday, it was 743.

And that's the score they told me was on my experian file anyway and they gave me all these reasons (I listed above,) why my score might be this way, and it is on a 250 - 900 range.

Not sure if that's a Fico or Plus score.

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 04:09:35 GMT

I applied online at 2 credit Unions yesterday, they haven't answered me yet. They are "reviewing" the application. This first decline is already very discouraging.

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 04:13:30 GMT

I'm not sure waht kind of score they used but bottom line is I was declined.

My Equifax Fico score is 689 and is rated "good" my Fako is 690, There isn't much difference and I don't think all lenders use FICO.

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 04:23:56 GMT

did you apply for a FHA loan?

Re: Loan application declined with a score of 740!

LIGHTNIN — Sat, 18 Feb 2012 04:31:42 GMT

You're correct not all lenders use FICO, but most lenders do.

Lenders do not approve or deny on score alone.

Ask the lender(s) who denied you, the reason or reasons why.

Good night and Good Luck to you.

Re: Loan application declined with a score of 740!

MarineVietVet — Sat, 18 Feb 2012 05:27:54 GMT

@Anonymous wrote:
THAT is my score from Experian FAKO.
As a matter of fact, last time I checked on Wedenesday, it was 743.

And that's the score they told me was on my experian file anyway and they gave me all these reasons (I listed above,) why my score might be this way, and it is on a 250 - 900 range.
Not sure if that's a Fico or Plus score.

It's definitely not a PLUS score. Those run from 330-830 and as I said I know of no lender that uses them.

You're supposed to get a letter (that doesn't mean they will send it) telling you exactly what score was used to make their decision. If you get that would you update everyone as to what kind of score it was please?

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 12:45:50 GMT

I already got an email with PDF letter attached with my score 740 and the possible factors that "may be affecting my score". They say If I want to know in more the details the reasons why they decline the application I have to mail them a letter.

So, I don't think I'm getting another letter from them.

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 15:51:18 GMT

Hi millena, I just did an app with CITI and they gave me the same scoring model. According to
the Dodd-Frank Act that's the score they used. It was the same range, 250-900. Hopefully well get
some more information on this FAKO in the forums because if its used often enough it might have
to be considered a score for all intents and purposes.

I just find it funny because experian does not let consumers see their FICO but the model that
maybe a handful of lenders are using isn't even the same model they're selling you or I for educational
purposes.

Just one question ... have you started paying back your student loans?

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 20:36:35 GMT

No, I still have a couple more months before I start paying my SL.

Actually I have until June. But I don;t think this is why they decline the App.

As a matter of fact, I have no idea what could be the main reason. Just a lot of assumptions rigt now.

I wich I could have the cerititude that if I do personal loan, I will be approved. I' gonna have to speak to my banker..

Re: Loan application declined with a score of 740!

Anonymous — Sat, 18 Feb 2012 21:01:26 GMT

I believe the knock about installment information means activity. Taking out a loan and paying it down
are two different things and by activity I think they wanna see some payment history to see how you perform
with a loan.

This is just coming from me I think they want to see how you perform with other loans before they
jump in. You can always try a credit union but the inquiries and each lender is different. I wouldn't
think that is a major reason._

Re: Loan application declined with a score of 740!

Revelate — Sun, 19 Feb 2012 00:39:57 GMT

@Anonymous wrote:

I wich I could have the cerititude that if I do personal loan, I will be approved. I' gonna have to speak to my banker..

Ah, unless I'm misinterpreting your post (and this would better in the Auto Loans forum if I'm not), a personal loan in your case is absolutely not the way to go. The reason I say this is up2drive is BMW's non-captive, lend to non-BMW buyers, arm... and an auto loan is arguably the easiest loan of all types to get. I don't know how friendly up2drive is to people of limited credit history.

Also, from a lending perspective, they are absolutely going to look to see what your income vs. loan size is, in this case you're trying to borrow 67% of your annual salary, on a car: new or used? Which leads into the next question, of how much you're willing to put in a downpayment, and whether you can get a co-signer?

There's a host of other questions which could factor in, and posts tend to get lost in the weeds here. If this is an auto loan you're trying to get, I'd ask your question over in the Auto Loans forum with the information you've posted here, and also with some answers to the questions I've asked too... and go from there.

Re: Loan application declined with a score of 740!

Anonymous — Sun, 19 Feb 2012 02:35:20 GMT

Let me start this one with a smiley

I just applied for the Auto loan with Mid atlantic credit union and I got an instant pre -approval!!! ))

I actually changed the loan amount to 14000 with a downpayment of $2000. the rate is 3.99%! (their lowest right now is 3.49%) Pretty good!

I think it was probably the loan amount I was asking on the up2drive application which is 16000. Also, it looks like they'll give me a pre approval of 16000 anyway. On the "Invoice column" for the car it says 16000.

Well, I was surely getting worried, asking myself what it was that wasn't right with my applications. I should've asked less!

Now I just have to fax them my information. But I shouldn't get too excited yet, I've to finalize this first! Oh MY!

Re: Loan application declined with a score of 740!

Revelate — Sun, 19 Feb 2012 01:13:53 GMT

Congrats! The 16K invoice though is 14K loan + your 2K downpayment.

FWIW that's an extremely good rate too, congrats again!

Re: Loan application declined with a score of 740!

Anonymous — Sun, 19 Feb 2012 04:22:28 GMT

Thanks!

I will post this in the Auto loan approvals when this is finalized. I still can't totaly believe it...

Re: Loan application declined with a score of 740!

Anonymous — Sun, 19 Feb 2012 16:57:06 GMT

1.) You have late payment tradelines from 2 or less years ago.

2.) You have a student loan (which you haven't made any payments on)

3.) You are trying to take a loan out for car.

You don't have any repayment history. You just want to keep taking on debt.

Best thing for you to do is start making your student loan payments, pay your credit cards off, and buy an inexpensive car with cash & drive it for a couple years so you don't take on anymore debt. Once your payment history with your SL and CC's is consistent (at least a year or two), then try again.