Denied with a score from all 3 at 700+. Why?

[Anonymous]

I have a 13 year credit history, have/had 3 credit cards never a late payment, have had an auto loan that I paid in full ahead of time and never late, have paid down an entire student loan ahead of time (never late on those either), and my credit scores are all 700+. So why did I get this as the reason for not getting an $8000 loan?

"Loan request excessive relative to previous highest revolving balance"

What in the world does that mean? Pretty frustrated. Any advice would be appreciated. Thanks.

[Anonymous]

Are you carrying a balance on any of your credit cards or had a high balance report recently? The way your finances sound, you are not. But essentially it is saying "The amount of the loan requested is too much compared to a past high revolving balance on your credit report"

I would definitely call the bank that denied you and try to recon

[Anonymous]

I had a $214 balance on one credit card, but it was paid off a few days ago long before it was due (Oct. 3 is the due date). Other than that there's nothing else. And that card has a $7500 limit on it. Would any balance on a card affect this no matter how much was there?

[203bravo]

how much were you requesting and what what is your income?

[Anonymous]

8,000 requested over 60 months. 30,000 income.

[cahiatt]

Maybe they didn't want to do a loan for that small of an amount? Try going to CapitalOne and getting a blank check pre-approval. Maybe your own bank also. With no debt, no lates and good credit scores I'd almost lend you the money....

[Anonymous]

I went to my bank for the loan and the type of loan I applied for was something they had set up for small amounts specifically. I looked into the Capital One idea, but they will only let me do it if I use a Capital One preferred dealer. Those dealerships don't have what I am looking for because they don't sell stuff that old. That's why I originally applied for a personal loan so that I could use it for whatever I wanted.

Haha! Thanks for your kindness via your thought  on you being the lender.

[ready13]

i was told from my personal banker helping with info to start setting up for mortgage loan financing (who gets her info from the mortgage specialist who did her own home loan) that too many accounts with high credit lines does not make things look good having too much credit available and too high credit llines also is not the best to have when applying maybe should close off something that you dont need. I know you are of recently able to apply with a score of 550 which i was shocked to learn depending on your monthllyl income and ability to provide the mortgage comp. with enough supporting info to back up your app and details that makes you more capable at time of app. to be approved. They only like typically for you to have one or two at most credit cards opened for mortgages i believe its three with established at least two-three yrs. of great-good credit within that time frame and can still be approved.

[AZHeather]

It sounds like what you may want to do is find the specific car that you want, then immediately go to your bank and ask for an auto loan for that vehicle.  My dad use to collect classic Mustangs (not something you would find at a dealership), so whenever he found one that he wanted to buy he would take the car and owner's info (vin, condition, price, person's name, etc.) to his bank and they would set up an auto loan specific to that vehicle.  Of course, specifics on the process with the bank varies depending on your state and whether or not it is a title holding state or not.

You should talk to your bank or cu to see if this is something that they would be wiling to do in your case.

Good luck.

[Revelate]

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@Anonymous wrote:

I went to my bank for the loan and the type of loan I applied for was something they had set up for small amounts specifically. I looked into the Capital One idea, but they will only let me do it if I use a Capital One preferred dealer. Those dealerships don't have what I am looking for because they don't sell stuff that old. That's why I originally applied for a personal loan so that I could use it for whatever I wanted.

Haha! Thanks for your kindness via your thought  on you being the lender.

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Ah that's your problem: personal loans are waaaaay harder to be approved for than auto loans which are secured against the vehicle's title.

Talk to lenders who will do an auto loan for that old of a car, many CU's will.  Also the APR would undoubtedly be higher on the personal loan anyway.