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Personal Loans - No more?

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Anonymous
Not applicable

Personal Loans - No more?

Maybe just me, but I learned that credit score and annual income does not meant much for personal loan any more.

 

3 years ago, credit score 682 with about 45K credit card balance.

Today, credit score 778 with about 6K credit card balance.

 

With an annual income of 200K, I was rejected with a 50K loan, 30K loan and even 25K loan (3 difference banks).

 

Any tips and hints of how to get a personal loan? Thanks.

Message 1 of 9
8 REPLIES 8
JM-AM
Valued Contributor

Re: Personal Loans - No more?

You only mention your scores assuming they are FICO scores. While scores are part of a decision factor in being issued credit it is not the only decision factor. Any negative items (Late Payments, Collections, Judgements, Liens, etc etc) will also be part of the determining factor as well as income, length of time at job, etc etc. Too many variables could be included to give a reason as to why.

 

IMO it is best to apply for personal loans through a CU (Credit Union). If you do not belong to a CU, then bring in your current CR (Credit Report) and speak to some one. If they feel you would qualify you would have to join the CU (usually a very cheap investment). CU's are IMO the best when it comes down to having personal loans and CC's. 

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 9
Anonymous
Not applicable

Re: Personal Loans - No more?

Hi Mars,

 

Welcome!  Glad you're here.

 

 

Did you receive a letter from the banks after your application was denied?  

What reasons did the potential lenders give you for not approving your application?

Message 3 of 9
RobertEG
Legendary Contributor

Re: Personal Loans - No more?

I dont believe that credit score and income dont mean much in new credit evaluation.

Of course, creditors usually dont make lending decsions based only on your FICO score.

It probably has more impact on rates and terms than the final lending decision.

Low limit and low risk credit, such as a secured CC, may involve only a peek at your CR and scores.

As the potentila level of risk rises, such as an application for a hgh CL unsecured CC,  they probably have minimum threshoold FICO scores they want to see before they go to the added time and expense of doing a detailed manual review of your credit report.

Increasingly risker lending decisions, such a a high principal personal loan, may lead them to want additional information that is not even included in your credt report or your FICO score, such as income, total debt, etc.

Unsecured personal loans at high levels will probably get the most scrutiny.

Secured loans, such as an auto or mortgage loan, may be off less risk since you have personal property on the line.

Unpaid debt showng in your CR, such an unpaid CO or CA, is probably certain to get scrutiny.  Most mortgage lendors, for example, will summarily require payment of all unpaid delinquency debt in yor CR is a basic precondition to loan approval.

I would suggest the following.  First look at your CR, and see if there are any "red flag" items in there, such as unpaid bad debt, settlement for tess than the full amount of a prior debt, very high % util on existing revolving credit, etc.  I suspect that there is a red flag of one form or another in your CR that is causing concern.

 

Then get a feel for how they will view the risk in your loan.  Such factors as the principal balance, whether the loan is secured or unsercured,  are they any co-signers, and if so, what is their prior credit history?

 

 

Message 4 of 9
Anonymous
Not applicable

Re: Personal Loans - No more?

I had a guy at my bank (Chase. Hate.) tell me "Nobody does personal loans anymore. Not even the little guys." when I asked about getting a small amount for a car. A lot of places just don't care now.

Message 5 of 9
haulingthescoreup
Moderator Emerita

Re: Personal Loans - No more?

 


@Anonymous wrote:

I had a guy at my bank (Chase. Hate.) tell me "Nobody does personal loans anymore. Not even the little guys." when I asked about getting a small amount for a car. A lot of places just don't care now.


Obviously your guy has never heard of credit unions. Smiley Wink

 

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 6 of 9
julieray419
Established Member

Re: Personal Loans - No more?

If it is any encouraging, I have been with my CU for 3 years and have problem after problem financially and am now ok job wise. My scores are in the 400,yes that hurts to say, BUT, I was approved for a $700 loan by my CU at 15% --yikes I KNOW, but they helped me and I only took out the loan for 9 months of which I will pay off anyway in 3.

 

If they took a chance on me I do not see why not with you. CU's are member owned and the members voice counts first compared to banks. Good Luck!

Message 7 of 9
Anonymous
Not applicable

Re: Personal Loans - No more?

Yeah credit unions are great.  They will extend you credit most of the time.  I also went to chase for a personal loan and the personal banker stated that they no longer do them.  I'm like wow but it was a blessing because I went to my credit union and they did.  That transaction opened my eyes and now I have all my credit products (personal loan, CC, mortgage, and auto) with my CU.  I think the first thing most consumers look at is the big banks when we need money.  Most people still think that credit unions still operate by limited memberships.  They didn't notice that most CU have opened up their membership to almost anyone now - lol.  So it's up to us to spread the word on CU's and help others from not being slaughtered by the big banksSmiley Very Happy

Message 8 of 9
Anonymous
Not applicable

Re: Personal Loans - No more?


@Anonymous wrote:

Maybe just me, but I learned that credit score and annual income does not meant much for personal loan any more.

 

3 years ago, credit score 682 with about 45K credit card balance.

Today, credit score 778 with about 6K credit card balance.

 

With an annual income of 200K, I was rejected with a 50K loan, 30K loan and even 25K loan (3 difference banks).

 

Any tips and hints of how to get a personal loan? Thanks.


USAA has personal loans.

 

Still, a $50k personal loan is really high.  I doubt many banks or even credit unions would lend that much on a totally unsecured loan.

Message 9 of 9
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