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Denied RV Loan by Essex with FICO of 711

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Established Member

Denied RV Loan by Essex with FICO of 711

I am attempting to purchase a used fifth wheel for $42k from a private seller. I am planning on putting down $7k so borrowing $35k. I have spent all day rate shopping and am not having any luck, it seems much more complicated than it should be. Essex denied me due to length of credit being less than 3 years although I've had a Discover Card since 09/2016.  As of today according to MyFico my scores are:

 

Experian FICO 8: 776

TransUnion FICO 8: 699 (even though Discover says this was 712 on 9/10 and 765 on 8/10)

Equifax FICO 8: 777

 

From what I have seen online Essex Credit has the best rates (especially for full timers, which I will be, which is strange because most lenders do not finance full timers at all and if they do their rate is usually much higher). They pulled my credit (which now I have learned to always speak to someone over the phone first) on 8/31/20 and received a score of 711 (Experian). I was denied. Today I called them on the phone and I was told that the only reason I was denied was due to my length of credit history being less than 3 years. I have had a Discover Credit Card (under my name only, I am not just an AU) since September of 2016. He agreed that this should count but he couldn't see any other reason for being denied as I met the other 2 requirements (credit score being greater than I think 700, and low DTI which he said mine was excellent). He is going to forward this to his manager to try to figure out why I was denied. I've captured an excellent deal on a fifth wheel that I don't want to miss and I'm dying to hear back from Essex regarding my denial on Monday. Any ideas??

 

I'm wondering if the guy I spoke to via phone today just couldn't pull up my full credit report as I do have two delinquencies on my reports. I had a 30 day late payment posted around August 2019 and another in January 2020 which were from 2 different Synchrony accounts. I paid them both in full as soon as I realized and I am working on getting Goodwills. Besides that my Discover Bank account may have had a very high balance due to my debit card no longer working but I have paid all of that off since. 

12 REPLIES 12
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Established Member

Re: Denied RV Loan by Essex with FICO of 711

Besides Essex my boyfriend and I applied as Co-Borrowers to Campus USA a couple of weeks ago. My boyfriend was told over the phone that we were denied (his score was 750s but did not have enough credit history, mine was around 704 and I can't remember if they mentioned my recent delinquencies or not). It looks like Campus USA pulled my Equifax, I cannot figure out which FICO model they use but right now my Equifax FICO 8 is 776. I called today to figure out why we were denied but the person that is handling ours was busy on the phone so will be getting back with us in the AM. The person I did talk to though said it didn't look like we were ever denied as it still says processing and that from what he can tell we would qualify for a loan. He kept repeating himself "I don't know why you think you were denied". I asked him how long it takes to process and he said up to 48 hours however it's been two weeks 🤦🏼‍♀️ Is it always this complicated?? Either way we no longer want my boyfriend on the loan because we will also be purchasing a used truck and have heard it's better to do so separately.

Meanwhile BMO Harris Bank, who my car loan is through, quoted me a sucky APR 8.58, Fixed 8.49 (what's the difference between the two??). Florida Credit Union, which is my bank, quoted me 5.85% for 60 months and 6.35% for up to 120 months so long as my Equifax score is 720 or above (which it is). I'm also waiting to hear back from an offer I made with a dealer on a consignment that I can probably talk down to $43k-44k (1k-2k more than the private seller) but maybe I would have better luck on financing through the dealer?

Message 2 of 13
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Re: Denied RV Loan by Essex with FICO of 711

Dealership financing may be an option...especially now. With lending tightening up across the board dealers have relationship with these banks that they can leverage on your behalf.

The downside is that the dealer isn't your friend. You're probably not going to end up with the best rate but if you're looking to get approved and your scores aren't terribly bad, taking dealership financing is an option with the hopes of you being able to refinance down the road.

Best of luck to you.
Message 3 of 13
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Established Member

Re: Denied RV Loan by Essex with FICO of 711

@Loquat thanks for your input! We are getting the RV and truck because I'll be doing travel nursing. It sounds like roughly half of my pay will be in stipends for housing, meals and incidentals. I'll be counting my RV as my second home therefore my stipends will be tax free. My understanding is that lenders will not count any stipends towards your income. I will also most likely be working with a couple of different travel agencies so that I'll have a broad range of contracts to choose from and I am not sure how that will look as far as the "how long have you been working for your current employer" question goes. Based on those two things I am worried that it will be difficult to get refinanced at a better rate. Essex has starting rates at 3.59% for 60 months. The guy I talked to on the phone about why I didn't qualify for financing with them even though it seems like I have sufficient credit history gave me his email in case I don't hear from his underwriting manager tomorrow (Monday). I have no idea how much wiggle room lenders have but I plan on sending him an email early in the morning thanking him for looking into it further and explaining what makes me a good person to finance with. Sort of like a goodwill 😅 🤞🏼

Message 4 of 13
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Valued Member

Re: Denied RV Loan by Essex with FICO of 711

I'm currently looking to purchase a travel trailer and after some discussions with lenders and research before I pull the trigger there are some items in addition to minimum credit scores and credit history.

 

Things like down payment amount, are you going to use it for full-time living, and do you have a current mortgage are just some of the factors that lenders look at. RV's are considered a "luxury purchase" so there are more strict lending standards plus higer interest rates. 

 

I think going through the dealer is an option but before you have them start blasting out your credit to lenders has anyone tried their local credit union or an affiliate link GoodSam?

Message 5 of 13
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Valued Contributor

Re: Denied RV Loan by Essex with FICO of 711


@Flexfanatic wrote:

I'm currently looking to purchase a travel trailer and after some discussions with lenders and research before I pull the trigger there are some items in addition to minimum credit scores and credit history.

 

Things like down payment amount, are you going to use it for full-time living, and do you have a current mortgage are just some of the factors that lenders look at. RV's are considered a "luxury purchase" so there are more strict lending standards plus higer interest rates. 

 

I think going through the dealer is an option but before you have them start blasting out your credit to lenders has anyone tried their local credit union or an affiliate link GoodSam?


GoodSam runs through Essex/Bank of the West

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $3,300, Kohls $3,000, BBVA $2,500

Closed CreditOne $800, Blaze MC $3,000, Waufair $5,000

Infiniti Financial lease
Subaru/Chase 1.99%

Message 6 of 13
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Established Member

Re: Denied RV Loan by Essex with FICO of 711

I will not be full time as I will have a separate tax home where I will be located at least 30 days per year😉

 

My down payment will be $7k which is about 16% down. I'll be borrowing $35k. I have told them I can go up on my down payment if I need to.

 

I don't have a current mortgage. I've been an authorized user on my mom's Discover Card since 2002 which has a credit limit of $15k (current balance $418) and her Citi Card since 2016 which has a limit of $19k (current balance $6,999). I've had my own Discover Card since September 2016 so 4 years- credit limit $2.8k and current balance $258. 06/2018 I borrowed $21,090 for my car and owe $13k. None of those accounts have late payments. 

07/2019 I opened a synchrony account and have a 30 day late on 09/2019. I then paid in full 10/2019. 
A different synchrony account opened 10/2019 and 30 day late 01/2020 then immediately payed in full. 

Message 7 of 13
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Established Member

Re: Denied RV Loan by Essex with FICO of 711

I have still not heard back from Essex although I emailed them yesterday and again just now. I included the appraisal I received showing how great of a deal this is and that the unit is worth the loan amount. 

Meanwhile I spoke with Campus CU yesterday who said we weren't denied we just weren't approved 🙄 I guess because we don't have a larger auto loan or a previous recreational loan we don't qualify for pre-approval but that we can send him the info on the unit we want and they will check if it's worth the loan amount and let me know for sure if approved or denied. I showed him my updated scores which were much better than the score he pulled and asked if he thought they should pull it again. His response was: 

 

"Your score was a 704, but Johns score will get you guys the best rate we could offer you. It wouldn’t make sense to put another hard pull on your credit unless you were wanting to do this in just your name."

 

The issue is that we DO now want it in just my name because we are planning on getting a truck loan in my boyfriends name. I don't know if I should tell him our plan to get a truck and see what he says or if that will harm our chances in getting this loan. I already mentioned yesterday  that I think we want it in just my name but didn't tell him why and he said he would run the numbers for both of us as well as just me. Should I tell him to go ahead and pull my credit again or wait and see what he comes up with first?

They just hard pulled my credit (Equifax) on August 29th, will my score go immediately go down if they pull it again? Would Campus pulling my Equifax score effect my Experian score if Essex decided to pull that one again? 

Also, how come nobody can tell me which score model they use? For example I'll tell them "I know you pulled from Equifax but do you know which score model you use?" And their response is "We just get the score directly from Equifax". When I try to further explain they just repeat again "it's just the Equifax score, we don't do any calculations. It's just one score." When I say ask if 'THE score' is FICO 8 they say "It's not a FICO score it's just the score that Equifax gives us." Am I confused or are they??

 

They came up with a 704 score, my FICO 8 is 777

Message 8 of 13
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Valued Member

Re: Denied RV Loan by Essex with FICO of 711


@Munchkinerin wrote:

 

Also, how come nobody can tell me which score model they use? For example I'll tell them "I know you pulled from Equifax but do you know which score model you use?" And their response is "We just get the score directly from Equifax". When I try to further explain they just repeat again "it's just the Equifax score, we don't do any calculations. It's just one score." When I say ask if 'THE score' is FICO 8 they say "It's not a FICO score it's just the score that Equifax gives us." Am I confused or are they??

 

They came up with a 704 score, my FICO 8 is 777

 

Not sure if you have a subscription to MyFico but does that 704 score they used match any of the FICO score types (i.e., FICO4 or FICO9)?


 

Message 9 of 13
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Re: Denied RV Loan by Essex with FICO of 711

Message 10 of 13
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