ucibaqt wrote:I recently applied for a signature loan with my credit union and was denied based on past credit delinquencies. So I called to see if I could get a reconsideration. Since my payment history has been on the straight and narrow for the last two years and I have GW'd some old 2006 lates away. I was told that I needed to type a letter accounting for each of my delinquencies and then those would need to be submitted with a new loan app. I heard of this happening with home loans, but personal loans. Is this a bit much? I thought after two years derogs don't have much of an effect. I just joined this CU, so is this foreshadowing for apps to come. Meaning since they are being picky about the personal loan, do you think they will be the same way about CC. Should I try and see if I can become a member some else?
You haven't described your delinquencies at all or shared you FICO score. But I will share with you the following tale: Two years ago when I began rebuilding my credit the first thing I did was finance a used car purchase. My scores were a little banged up and I had a PR reporting on my CBR's. I printed out my EQ report from here and took it with me on a visit to my local CU and I asked if they thought they would be able to help me. They said probably yes but that they would pull all three CBR's in the process of approving me. As a result I left as a member and with an approved car loan at a rate far better than I would have received elsewhere. They didn't ask me to write a book, but they did what they thought was necessary to protect the institutions financial integrity. Had they asked me for an essay I would have gladly provided it. That auto loan was the cornerstone of a very successful rebuilding program. I now have 700-730 FICO scores and a nice portfolio of higher limit prime to uber-prime CC's.
Every journey starts with a single step.
Write the letter.
I am really very sorry to hear about your difficulties.
You can write. So, write a heartfelt letter to the credit union covering both the reasons why you were previously delinquent and why you want this loan. Let them know it is very important to you. This is the kind of thing a CU can consider and a bank really cannot. Do it and hope for the best. That's all you can do.
ucibaqt - I agree with cwcid and all the others. Write the letter, heck you have the majority of it typed here. Just do a quick cut and paste. clean it up a bit and list the creditors as bullet points below. You are not the only student who has had problems with their credit. You are still very young and have years to grow your credit file. What I think is wonderful is that you have taken full responsibility and are retifiying the issues. Kudos to you! Resubmit your letter to your CU with another application. Good Luck!