Help with light stream denial

[Manicete]

If the community can shed some light on my denial. I'd greatly appreciate it. 

Income I put 200k split evenly from w2 and self employed.

35k in savings/checking

10k in 401k

credit cards are under 30%

pulled tu at 783

asking for 50k personal loan

[Manicete]

I ended up calling lightstream and the gentlemen I spoke to didn't really have a real answer. He mentioned that they look at other factors and one thing I can say is the underwriters look at those secured credit cards and can sometimes put it under a collateral credit. Which all of it sounds like some BS. Anyways the application has been sent to re-review.

[JoeRockhead]

Credit cards are under 30%, is that in aggregate?  Other questions:

• What is your highest individual card reported utilization?
• How many cards do you have, and how many are carrying a balance?
• What is your DTI ratio?
• How many inquiries are on your reports?
• What reason did you give for wanting the loan?
• How old is your newest account?
• What's the average age of your credit?

[Manicete]

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@JoeRockhead wrote:

Credit cards are under 30%, is that in aggregate?  Other questions:

• What is your highest individual card reported utilization?
• How many cards do you have, and how many are carrying a balance?
• What is your DTI ratio?
• How many inquiries are on your reports?
• What reason did you give for wanting the loan?

---

Highest Individual card is holding a 22% balance at like $800

9 cards and 7 show a balance

My dti is extremely low maybe sub 20%

I have 2 inquiries on my report one at 5 months old for a car I financed and another for a cli

reason I put home improvement 

[JoeRockhead]

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@Manicete wrote:

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@JoeRockhead wrote:

Credit cards are under 30%, is that in aggregate?  Other questions:

• What is your highest individual card reported utilization?
• How many cards do you have, and how many are carrying a balance?
• What is your DTI ratio?
• How many inquiries are on your reports?
• What reason did you give for wanting the loan?

---

Highest Individual card is holding a 22% balance at like $800

9 cards and 7 show a balance

My dti is extremely low maybe sub 20%

I have 2 inquiries on my report one at 5 months old for a car I financed and another for a cli

reason I put home improvement 

---

I'm going to put my chips on the red flag to them being the 7 of 9 cards carrying a balance.  Although the balances are on the lower side, and it's not the reason they gave you.  They likely view it as a profile in potential distress, or someone living beyond their means. 

[LIGHTNIN]

What is your length of employment?

Reason for personal loan instead of a lower rate heloc?

How much equity in your home?

When was mortgage and auto loan took out?

Do you have latest on CC's?

Do you pay more then the minimum monthly payment?

Hopefully, we can help you figure this out.

[Manicete]

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@LIGHTNIN wrote:

What is your length of employment?

Reason for personal loan instead of a lower rate heloc?

How much equity in your home?

When was mortgage and auto loan took out?

Do you have latest on CC's?

Do you pay more then the minimum monthly payment?

Hopefully, we can help you figure this out.

---

Length of employment on w2 is 3 years

not enough equity on the heloc

mortgage was taken out just under 2 years ago

60k in equity on home

Not sure what you meant by latest on cc's I don't have any late payments on my cc's

i always pay more than the minimum on my cards.

i literally have less than 5k in credit card debt spread out in between those cards. Hopefully it helps understand the profile better. 

[Manicete]

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@JoeRockhead wrote:

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@Manicete wrote:

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@JoeRockhead wrote:

Credit cards are under 30%, is that in aggregate?  Other questions:

• What is your highest individual card reported utilization?
• How many cards do you have, and how many are carrying a balance?
• What is your DTI ratio?
• How many inquiries are on your reports?
• What reason did you give for wanting the loan?

---

Highest Individual card is holding a 22% balance at like $800

9 cards and 7 show a balance

My dti is extremely low maybe sub 20%

I have 2 inquiries on my report one at 5 months old for a car I financed and another for a cli

reason I put home improvement 

---

I'm going to put my chips on the red flag to them being the 7 of 9 cards carrying a balance.  Although the balances are on the lower side, and it's not the reason they gave you.  They likely view it as a profile in potential distress, or someone living beyond their means. 

---

It's so hard to believe that because 5 out of the 7 cards are under 10%.

One card is at 18%

and the other at 20% and all of those cards have a balance of under 1k... 

[FicoMike0]

@JoeRockhead makes a lot of good points, but why question the given reason?

I would think a secured card would be a red flag for a request of $50,000 in unsecured credit.

[JoeRockhead]

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@Manicete wrote:

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@JoeRockhead wrote:

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@Manicete wrote:

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@JoeRockhead wrote:

Credit cards are under 30%, is that in aggregate?  Other questions:

• What is your highest individual card reported utilization?
• How many cards do you have, and how many are carrying a balance?
• What is your DTI ratio?
• How many inquiries are on your reports?
• What reason did you give for wanting the loan?

---

Highest Individual card is holding a 22% balance at like $800

9 cards and 7 show a balance

My dti is extremely low maybe sub 20%

I have 2 inquiries on my report one at 5 months old for a car I financed and another for a cli

reason I put home improvement 

---

I'm going to put my chips on the red flag to them being the 7 of 9 cards carrying a balance.  Although the balances are on the lower side, and it's not the reason they gave you.  They likely view it as a profile in potential distress, or someone living beyond their means. 

---

It's so hard to believe that because 5 out of the 7 cards are under 10%.

One card is at 18%

and the other at 20% and all of those cards have a balance of under 1k... 

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It may be hard to believe but "too many accounts with balances" is a thing, and a thing that costs people points, and it also doesn't matter if there's $5.00 , or $500 balances. 

I'm not saying it's right.  I'm saying that looking at it from a lenders point of view they might have concern when they look at a profile stating a $200k income, 20% DTI but is carrying balances on %80 of revolving accounts.