Derogatory marks with high credit score

[Anonymous]

If someone has a credit score in the 750s or higher, a really good credit score, are you still likely to be turned down by lenders if you have derogatory marks from things that are unrelated to credit? For example, I was denied a credit card from a lender a few months back because of the derogatory marks on my credit report from student loans over 5 years ago. But I didn't think much of it because my credit score is still in the low 600s. So my question is: even after building my credit back up, which I'm in the process of doing, and I get my score up way high, will lenders be still likely to deny me funding because of the derogatory marks from my student loans (assuming they'll still be on there of course)? Or will the high credit score kind of off-set those marks? Thank you.

[creditguy]

Depends on the lender, but of course you can be turned down with a 750 score with derogatory marks. Of course the likelihood of having a 750 with derogatory marks that are serious enough to be turned down is pretty slim in the first place.

[Credit_hawk]

I could be wrong but I don't think it's possible to get your credit above 750 with derogatory marks. Though I suppose anything is possible.  I mean if it's near falling off I guess you could have high 700s with derogatory marks.

[Credit_hawk]

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@creditguy wrote:
Depends on the lender, but of course you can be turned down with a 750 score with derogatory marks. Of course the likelihood of having a 750 with derogatory marks that are serious enough to be turned down is pretty slim in the first place.

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You beat me too it. Exactly! It's unlikely that you would have high 700s with derogatory marks.

[Anonymous]

Let's say it were 720 --- ?

[creditguy]

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@Anonymous wrote:

Let's say it were 720 --- ?

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Yes you could still be rejected. 

[Credit_hawk]

Like CreditGuy said, truth is you never really know. I can say from experience once you get above 750 the likelyhood of being outright rejected is low but you can still run into problems. It's the strangest thing, you'll see people who are 750 getting a starting limit of $2k on an AMEX and someone with a 650 getting $8,000. That's why people always say your mileage may vary. 

[creditguy]

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@Credit_hawk wrote:

Like CreditGuy said, truth is you never really know. I can say from experience once you get above 750 the likelyhood of being outright rejected is low but you can still run into problems. It's the strangest thing, you'll see people who are 750 getting a starting limit of $2k on an AMEX and someone with a 650 getting $8,000. That's why people always say your mileage may vary. 

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This is very very true. It's all part of the credit paradox. The real question I suppose is what card are you looking at? Some data points on the particular card may help more than just a generalized question since each lender has their own approval quirks and rules. 

[awp317]

I have a 30 day late payment from Diners club from last December and im still in the 780s. I was at 848 prior to the late though so I guess it just depends on how high up you are that how far you fall matters less when you get the baddie. Nobody has mentioned it to me in any of the new shopping I have done, and thats cars, mortgage, and credit cards. Never came up. It shows up as a "reason for your score" on all the fico sites though. 

[ramblinggirl]

I was in a panic mode 2 yrs ago when my credit score dropped from 800's to 730's due to a credit card bill that was 60 days late. I had a credit card that I had not used in a yr and decided to use it so the bank would not cancel it.  I use to have auto payment on the account but apparently dropped it when I had a zero balance. So my credit score fell and I was so mad at myself.  However over time my score came back up to the mid to high 700's and I have not been turned down for the 3 cards that I applied for-2 chase and an Amex. Now I dont know if a derogatory student loan is looked at differently-I have heard folks say "dont  ever let your student loan go bad"