High card balances + too many inquiries + collections = loan denied!

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CKB750
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High card balances + too many inquiries + collections = loan denied!

Postby CKB750 » Wed Sep 11, 2013 5:03 pm

Hello everyone I am in need of some serious advice before it gets worse: I applied for a loan from my credit union for $5,700 and on monday I got a letter in the mail today saying that it was denied!! They said my risk score was 612.

They said my credit card balance was too high, collections, too many inquires and account delinquent account!! can some PLEASE tell me the best to bring up my scores or what should I pay off!!


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Calipso
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Postby Calipso » Thu Sep 12, 2013 6:32 pm

Well, yea I would expect such a denial.

Paying off your balances and fighting the collection would be your best bet. Paying the collection is a bad move. Prior experience speaking.
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takeshi
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Postby takeshi » Thu Sep 12, 2013 7:47 pm

CKB750 wrote:They said my credit card balance was too high, collections, too many inquires and account delinquent account!! can some PLEASE tell me the best to bring up my scores or what should I pay off!!

Utilization plays a significant role. Pay down your balances to get your utilization down. It takes time and there are no quick fixes.

Inquiries take time to fall off.

Collections and delinquent accounts require handling specific to the situation and I'm not equipped to provide advice on those. I managed to successfully get a PFD on a collection so you may want to do some research on your own.

Xer0 SiN
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Postby Xer0 SiN » Fri Sep 13, 2013 12:42 am

i honestly think utilization is everything. i have about 60 hard inquiries across all credit bureaus and doesnt seem to hinder me from getting credit cards.

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Postby otter » Fri Sep 13, 2013 4:39 pm

Xer0 SiN wrote:i honestly think utilization is everything. i have about 60 hard inquiries across all credit bureaus and doesnt seem to hinder me from getting credit cards.


+1

When you consider payment history is 35% and utilization is 30%, inquiries are simply a drop in the bucket... or actually 10%. Hard pulls become more significant when everything else is marginal, but if your utilization and history is excellent- you can get almost anything.
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CKB750
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Postby CKB750 » Thu Sep 26, 2013 8:14 pm

so what about the collections should i pay them or fight them or try to get pfd? and I have 1 tax lien..

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Postby Ikarus » Fri Sep 27, 2013 10:19 pm

10+ years ago, I applied for a car loan through my credit union. I was denied b/c of a few long-standing collections. I called the companies and negotiated a smaller payment to have the collections immediately removed. A few hundred bucks later, the collections were removed from the bureaus, with documentation of paid in full, and I was subsequently approved for the car loan.

That's an example of PFD (pay for delete), but it's harder to do these days, because the bureaus see the defaults as accurate credit history.

Still...call your creditors and see what they're willing to do and report.
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Postby SuperKirby » Mon Sep 30, 2013 7:17 pm

Xer0 SiN wrote:i honestly think utilization is everything. i have about 60 hard inquiries across all credit bureaus and doesnt seem to hinder me from getting credit cards.


Hey @Xer0 Sin, I know I told you already on TOBB, but man, 60 inqs! lol. :D



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