:[bad credit :[ But good co-signer..how come I didnt..?

Question

get approved by wells fargo? i have bad credit but then i got a co-signer and they have good credit. they said he has a student loan out but we have proof that he is paying that automatically from his checks every other friday. then they asked if he can put his car up for collateral hetold them NO. but then changed his mind and called back and waited 45 minutes on the damn phone just to be told NO again...whats the deal with that? how come the system sucks

Answer 1

I don't know what you were trying to get approved for but co-sign loans are not as easy as they used to be.

If you are not married, both applicants must qualify by themselves.

Answer 2

I'm not sure of all of the circumstances and details surrounding your specific situation, so I can only speak generally. When applying for a loan, the lender takes into consideration several factors during the decisioning process. Some of the main factors lenders consider include the following:

-Cash Flow- Does the prospective borrower have the cash flow or liquidity to repay the loan?
-Collateral- Is the collateral being offered of sufficient value to repay the loan at least 1.20 times? Lenders like to make sure they are covered if the loan defaults, so, in evaluating collateral, they use a ratio called Loan to Value, which calculates the value of the loan as a percentage of the value of the collateral. The lower that ratio, the less risk the lender has with the loan he is making.
-Character- Does the credit score of the borrower indicate a good past tendency to repay loans on time without defaulting on any past credit obligations?

These are just a few of what are called the "C's" in the lending/banking business. In your case, it might be that the co-signer had a great credit score, but weak cash flow. Therefore he wasn't really a strong co-signer when it came to the evaluation of the afforementioned criterion because he couldn't support his required monthly payment obligations on his credit report coupled with yours'. Although he would have only had to support your payment obligations if you couldn't, it's important to know that lenders always evaluate based on a worst-case scenario because that enables them to more effectively manage the risk involved in giving loans. Because I don't know the specifics, I can only speculate.

Answer 3

Bad Credit Does Not Mean You Cannot Get A Loan.One of the most popular resources for researching bad credit loans is the internet. Almost all lenders have web sites that provide guidelines and information about their bad credit loan programs, and some even offer onlinemake your credit rating worse, so make sure you learn as much as possible about each lender’s program before deciding whether or not to complete an application. You can also work with an independent loan broker to help determine which lenders have programs that fit your individual circumstances.

Answer 4

Lending money is basically a gamble for a bank. They are gambling that you will pay back the money that you lend them plus the interest that they charge you. So to hedge their bets, they use your credit history and credit score to figure out if you are a good gamble. At this point, something in both you and your cosigner's histories is raising a red flag at Wells Fargo. I would suggest trying another bank, and/or waiting until your credit score goes up. I would also go in to the bank instead of trying to handle things on the phone. You usually get better and faster service when you are sitting in front of someone. They may also be able to tell you precisely what the red flag issue is.

Answer 5

Unfortunately 1 bad credit person on the app ,
Sucks the whole thing backwards .
With a bad credit person , the good one has to be willing to take on your debt and maybe loose his car if you flake .
When he hesitated about loosing his car for Your loan ,
They had second thoughts .
Are you really going to ask someone to risk their car for your loan ?
Unless I needed surgery to save my life ,
I would never be so crass as to ask that of anyone .

Maybe you should put off the loan until your FICO comes up ( debt paid down , some positive payment history etc )

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Answer 6

that's going to count on the lender and what policies they use in comparing the riskiness of the own loan. fairly, 3 issues can take place: a million) You and your mom gets the own loan as co-signers; 2) Your spotty credit is so undesirable that the lender will in user-friendly terms make the own loan on your mom; or 3) Your mom's FICO credit purely isn't extreme adequate (if she has different loans magnificent) and the lender comes to a decision to reject your application.

Answer 7

The amount of the student loan compared to the income is the important factor NOT that he is paying it back and I suspect that figure is high.

The system does not suck people with lousy/high credit problems should NOT be extended even further credit.

Answer 8

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