Was turned down for a small loan under 4k with an excellent credit rating, and make plenty of money to qualify. Was rejected for reason above. Maybe should have just forked out the small amount myself for the truck!
2006-10-23 10:53:16 · 8 answers · asked by rwhz199 4 in Business & Finance ➔ Credit
It is frowned upon to have many inquiries but is not normally used as a basis for decline. Too many inquiries over a certian time frame will eventually bring down your score slightly, but not that much. If you have several recent inquires its telling the lender that you could have more debts out there than what are actually reporting to the bureau. Then they are thinking "how much money has he actually borrowed" and "if we were to approve the loan then would he still be able to make the payments with new debts." All legitimate.
More than likely, if you have an excellent credit score I'm sure that was not the reason for being declined. A score is not the only determining factor. Stability - homeowner or renter, currently employed and how long on the job. History - accounts in good standing that show significant payment history, not just revolving debt/credit cards.
A score alone does not show an underwriter that you have the ability to pay. Take a second look at your credit report and look at other details not just the score.
2006-10-23 11:25:31 · answer #1 · answered by Abbi G 2 · 0⤊ 0⤋
Not all the time. If you're buying a house or car and shop around for the best rate then the banks acknowledge that you are just a prudent consumer and they discount the numerous inquiries.
Number of enquiries do not effect your credit score. That is based on the number of open accounts you have and how you manage them, residence stability, job stability, occupation etc.
I have worked in banking for over 20 years and I have never given a second thought to the number of inquiries on file as they relate to "Big Ticket" purchases. Now, if you're looking for a debt consolidation loan and there are 5 or six inquiries...that sends up a warning flag. It tells the lender that you have been turned down by the competition. It would make me take a real close look at the individual before I granted credit.
2006-10-23 11:05:54 · answer #2 · answered by Jack 6 · 1⤊ 0⤋
Wondering is wrong. FICO can't tell you why you were turned down. They didn't make the decision. The letter from the lender that turned you down should give a reason. If you want a more detailed answer, ask the lender for details. The turn-down letter should also provide instructions on obtaining a free copy of your credit report. This does not count as your 1 free copy per year through https://www.annualcreditreport.com/cra/index.jsp. You need to send a copy of the letter to the agency listed in the letter.
2006-10-23 12:14:39 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes, credit inquiries initiated by you do effect your credit score. (Unsolicited inquires made by other companies, such as when a credit card company checks your credit in order to mail you a credit card application that you didn't ask for, do not count.) This doesn't mean you can't shop around for a loan when you need one. As long as all your inquires are made in a 2 week period, your credit score should not be effected as much as if you made those inquires over a period longer than 2 weeks.
2006-10-23 16:31:46 · answer #4 · answered by frenchpeas 2 · 0⤊ 0⤋
Check out www.myfico.com. They explain how various factors affect your credit score.
The short answer is that the credit agencies look at it like this:
if you have an inquiry, you may have an open account that is not yet on your report or that you are having trouble paying off the accounts you currently have.
2006-10-23 11:47:24 · answer #5 · answered by bride2be091507 2 · 0⤊ 0⤋
The credit inquiries that you allowed count against your credit rating. There are other credit inquiries that are either allowed through the credit reporting agency or through existing creditors you have loans/activity with that do not count.
2006-10-23 11:01:55 · answer #6 · answered by Mirus Era 3 · 2⤊ 1⤋
Number of credit inquiries has an effect on credit score....
2006-10-23 10:55:10 · answer #7 · answered by Dwight D J 5 · 0⤊ 0⤋
Yes, they figure your not solvent and shopping for loans. You should receive a FICO statement as a result of the loan denial. Fair Isaacs will give you specifics of why you were declined.
-MM
2006-10-23 10:56:30 · answer #8 · answered by Anonymous · 0⤊ 3⤋