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I can't get approved, help me understand why...

Sparkks
New Member

I can't get approved, help me understand why...

When I was 18, I destroyed my credit by getting all kinds of credit card and loans before even knowing was credit really was. So, in the past yeae I've been trying to work on my credit score and get approved for a loan for the rest of my collections to get that taken care of but I've had no luck. Below I'll give you my report details and maybe you guys can look over and see what I can do to help me. Any info is greatly appreciated!

Now I understand that I have significantly low scores, and it make sense why I'm not getting approved... But my mother has a score in the 400s and with bankruptcy yet she just applied for a new car and a $22,000 unsecured loan and was approved instantly. So.. why is that?

Score
TransUnion: 609
Equifax: 604
Experian: 609

Collections
- $11,000 / repossession
- $1,200 / old phone bill
- $68 / credit card

I would pay the credit card off, but I'm paying creditrepair.com to remove them. They've already removed 6 other remarks, and I was told it was better to have them removed vs paying off.

Current active credit cards & loans
First progress - $300 - secured
First premier - $300 - secured
Credit one - $300 - unsecured
Fingerhut - $200 - unsecured
SelfLender - $500 - secured loan

100% payment history on all the accounts above.

Thanks for any help



Message 1 of 8
7 REPLIES 7
Stugotsv10
Frequent Contributor

Re: I can't get approved, help me understand why...

400's and got a $22k car?  what bank is this? 

Message 2 of 8

Re: I can't get approved, help me understand why...

Sounds like a predatory auto lender to me! Not necessarily a good thing that they approved her for that much 

Message 3 of 8
ScooterMcDoodlebutt
Established Contributor

Re: I can't get approved, help me understand why...


@Sparkks wrote:
When I was 18, I destroyed my credit by getting all kinds of credit card and loans before even knowing was credit really was. So, in the past yeae I've been trying to work on my credit score and get approved for a loan for the rest of my collections to get that taken care of but I've had no luck. Below I'll give you my report details and maybe you guys can look over and see what I can do to help me. Any info is greatly appreciated!

Now I understand that I have significantly low scores, and it make sense why I'm not getting approved... But my mother has a score in the 400s and with bankruptcy yet she just applied for a new car and a $22,000 unsecured loan and was approved instantly. So.. why is that?

Score
TransUnion: 609
Equifax: 604
Experian: 609

Collections
- $11,000 / repossession
- $1,200 / old phone bill
- $68 / credit card

I would pay the credit card off, but I'm paying creditrepair.com to remove them. They've already removed 6 other remarks, and I was told it was better to have them removed vs paying off.

Current active credit cards & loans
First progress - $300 - secured
First premier - $300 - secured
Credit one - $300 - unsecured
Fingerhut - $200 - unsecured
SelfLender - $500 - secured loan

100% payment history on all the accounts above.

Thanks for any help




Your fist mistake is paying creditrepair.com. There is nothing they can do that you can't do yourself, and trying to remove a valid debt is not going to fare well. Pay the $68- it's better to have a paid collection than an unpaid one on your report. See if they will PFD. If not start a goodwill campaign to get it removed.







Message 4 of 8
RobertEG
Legendary Contributor

Re: I can't get approved, help me understand why...

What is the date of your first delinquency on each debt, after which the debt has remained delinquent?

That date controls both when the derogs or collection will become excluded from your credit report, and additionally, in most states, the begin of running of the statute of limitations period within which the creditor or business can file a civil action.

 

The DOFD for each debt is necessary in order to advise on handling of the debt or credit reporting.....

Message 5 of 8
19eighty5
Senior Contributor

Re: I can't get approved, help me understand why...


@Sparkks wrote:
Now I understand that I have significantly low scores, and it make sense why I'm not getting approved... But my mother has a score in the 400s and with bankruptcy yet she just applied for a new car and a $22,000 unsecured loan and was approved instantly. So.. why is that?

Score
TransUnion: 609
Equifax: 604
Experian: 609

Collections
- $11,000 / repossession
- $1,200 / old phone bill
- $68 / credit card

I would pay the credit card off, but I'm paying creditrepair.com to remove them. They've already removed 6 other remarks, and I was told it was better to have them removed vs paying off.

Current active credit cards & loans
First progress - $300 - secured
First premier - $300 - secured
Credit one - $300 - unsecured
Fingerhut - $200 - unsecured
SelfLender - $500 - secured loan



Welcome to MyFICO! You've come to the right place for information. Sharing a few things that come to mind:

 

1. Maybe your Mom had a co-signer on the new car and unsecured loan approvals? If not, I would check (or ask her to check) the interest rates that she was approved for. My guess is that they are incredibly high and will take a while to pay off and/or the payments are really high.

2. I would stop paying creditrepair.com and begin working on your negative items yourself. You'll save money plus they are not doing anything that you can't do yourself. Then, I would

- contact the 3 creditors via mail for the negative tradelines you listed

- offer a PFD (pay for delete) and get it in writing

- If they do not offer a PFD, still pay, then write a series of goodwill letters in an attempt to get the negative information removed. If no luck, rinse and repeat.

3. You have a good selection of accounts to rebuild positive payment history with. When did you open these accounts? If recently, it may be time for you to take a break from applying for new accounts and let these cards age for 6-12 months.

 

Current active credit cards & loans
First progress - $300 - secured
First premier - $300 - secured
Credit one - $300 - unsecured
Fingerhut - $200 - unsecured
SelfLender - $500 - secured loan

FICO 8 (Feb 2018):EX- 519, TU- 530, EQ- 545
FICO 8 (Mar 2020):EX- 689, TU- 665, EQ- 670
What's in my wallet:



On the chopping block:

Message 6 of 8
Atmos_7
New Contributor

Re: I can't get approved, help me understand why...

I'd bet my last dollar your Mom got signed up with either a predatory lender or a lender that specializes in sub-prime loans (same thing?).

 

I have a cousin who got his car repossessed last year.  He recently called me excited about the fact that he just got a new car. My first question to him was:

 

"Congrats! That's great! What is your interest rate?"

 

" ... ... ... ... ... 20%"

 

"Umm..."

 

So, hopefully, your Mom is able to get out from underneath that loan quickly. And as far as your situation, be careful also on predatory lenders. It may solve your immediate problem but create a long-term headache for you financially.

Message 7 of 8
Morpho
Valued Contributor

Re: I can't get approved, help me understand why...

Literally almost anyone can get a car loan as long as they have a job. Its very different when you are trying to borrow actual cash. If your mother cannot pay they will come and take the car away (repo). If you cannot pay the loan back the bank is screwed. You look like a really high risk to bank. A loan secured with an asset (even a depreciating one) is a lot lower risk.

 

Also you don't need a loan to get out of debt. Its actually a really bad idea to do that. Read the rebuilding section. It will tell you how to work out deals with your creditors. Most will even delete the bad info once you pay (Pay For Delete or PFD). Search how to do this. Follow the steps.

Message 8 of 8
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