Hi, I'm Alex and wanted to ask everyone a very important question. About a month ago I called Bank of America and applied for a personal loan, and they told me right that second I wasn't approved.
Today, I got a letter from Bank of America explaining my declined application for a loan. There is a sentence that doesn't make any sense to me can you please tell me what it means?
"Bank of America"
After careful review, we were unable to approve your request because your credit references have not been established for a sufficient length of time and "there are too many inquiries on your credit file. What in the hell does that mean.
I only have 3 credit cards, Capital One, and 2 others. As far as I know I have NEVER missed a payment or sent it in late, so why is there problems with my credit at all? Please any advice is welcome, I want to keep my score in good standing. Thanks for your time and any help is greatly appreciated.
Thanks
Alex
2007-07-13 13:40:31 · 10 answers · asked by money mike 3 in Business & Finance ➔ Credit
Also, if there is something wrong in my credit records how do I correct it. Again, I've never missed a payment and never sent it in late, so why is this happening?
2007-07-13 13:43:26 · update #1
Oh-Oh well the first place I applied at was Banner Bank, and I bank with them they also denied my application. Then I tried BofA, I've only had my capital one credit card for about 7 months, cell phone for a year, other bills doesn't that give me any credibility?
2007-07-13 13:57:37 · update #2
"credit references have not been established for a sufficient length of time"
That means you have not had your existing credit cards long enough to establish a payment history. Creditors would prefer to see each credit reference at least a couple years old. The longer the better.
"there are too many inquiries on your credit file.".
That means you have attempted to get credit from a lot of sources, and that scares a potential creditor from giving you credit.
In each of these instances your credit score is taking a hit.
To examine exactly what is in your credit report, you can get a free copy from http://www.annualcreditreport.com
2007-07-13 13:49:32 · answer #1 · answered by Anonymous · 2⤊ 0⤋
One of the main things for determining your credit score is your length of credit history. If you have only had your cars for a year or so, the company does not have an accurate idea of how you will keep paying the loan over time. The inquiries into your credit file means that you have probably applied for too much credit recently. This causes lenders to worry that you won't be able to pay them off and they become reluctant to lend you more money.
2007-07-13 14:14:00 · answer #2 · answered by Andrea B 3 · 0⤊ 0⤋
Speaking as a nationally known credit score expert (book, radio shows, newspaper columns):
Your own final paragraph is the answer: Your credit has not been established for long enough. Everyone starts somewhere.
Making ordinary purchases like food and gas, raise your card balances near the limit and pay them off every month for fve more months. Then go to BoA and get a secured credit card there--or Wells Fargo, only those two.
2007-07-13 19:10:24 · answer #3 · answered by supercreditguru 3 · 0⤊ 0⤋
There isn't any option to get this knowledge. When you research credit score experiences all day lengthy like I do, a few occasions there's simply no rhyme nor purpose within the rankings. But, with this in brain there are matters that upload in your ranking and matters that subtract and simply one million object that may move both method. GOOD -- AA as agreed lower than one million/two the prohibit at the financial institution revolving prohibit BAD --- 30 days overdue 60 " " ninety " " a hundred and twenty + " " Charge OFF Collection Public Records BK Judgments Hope this is helping you
2016-09-05 08:37:52 · answer #4 · answered by reninger 4 · 0⤊ 0⤋
Have you been applying for a lot of loans lately? An inquiry is what is known as a hard pull, that is a check of credit to determine creditworthiness. Checks by existing creditors and also by banks solely to verify identity are known as soft-pulls, as they are not applicaitons for credit. Have you been applying for credit outside of BofA?
2007-07-13 13:52:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Alex,, Don't stress. Just keep paying your bills on time. You will be fine.
It's a form letter. They always say "too many inquiries"
What did you decide about the guitar ??
2007-07-13 15:11:37 · answer #6 · answered by CommonCents 4 · 0⤊ 0⤋
Sounds like you've been applying for too many loans. This hurts your credit score.
2007-07-13 14:25:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
My suggestion? Take your business elsewhere.
I have had some unpleasant experiences with Bank of America. Seems like they like to jerk honest people around.
2007-07-16 15:41:35 · answer #8 · answered by nickdc1960 7 · 0⤊ 0⤋
capital one raises red flag causes research into your past crediot before capital one sorry you can do nada get rid of capital one and try again
2007-07-13 13:45:33 · answer #9 · answered by vanessa 6 · 0⤊ 2⤋
Erectile Disfunction!
2007-07-13 13:45:09 · answer #10 · answered by {SA}Killshot{PP} 2 · 0⤊ 5⤋