@KeithW wrote:
I applied for a debt consolidation loan at two lenders and was denied at both. My FICO scores are now between 650 and 670. A few years ago we had scores of 670 to 700 and we bought a house and Credit for furnishings was plentiful. Does it make sense that a 20 point drop would make such a difference?
@KeithW Yes, a 20 point decrease can make a huge difference, especially where in your case it puts you in a different credit rating category. Many lenders consider a 670 score as the threshold for a "Good" credit rating (670-739) and where they are likely to do business. Below 670 is considered a "Fair" (580-669) rating which is another way of saying "sub-prime" and it might not be the area where the lenders you asked want to do business.
You can see how these rating categories are broken out right here at MyFICO: https://www.myfico.com/credit-education/what-is-a-fico-score
Or on Experian's website: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/670-credit-score/
Also keep in mind that these are just general guidelines and lenders might have different cutoff points.
