You have to understand why you get denied loan without bad credit, especially when you even have good credit score, then you will see what to do to get the loan.
If you have ever applied for a loan – either mortgage, car loan or a student loan, and got a denied loan response? You did not understood why, especially seeing that there are times when people with bad credit got the loan? Then, is difficult to understand why such credit was denied. One way to look around it is to search immediately for guaranteed loans for bad credit – thinking that there is no worst situation than to be with bad credit. Wrong, the credit score is not everything.
Denied loan without bad credit?
So, your credit score is good, but your application returned denied loan. Why?
Maybe you don’t currently have a job, or maybe your income is too low for the amount you have requested.
Maybe you already have way too much debt to afford new one. Check out your debt to income ratio. Even though there is no clear result for considering you are fine, try to take as a note: the monthly debt is better not to exceed 35% of your monthly income.
Maybe the recent part of your credit history is quite bad, while the credit score is based in fact on the last 7 years, so no matter the bottom-line score is still good, the actual situation is not so hot.
Maybe you rolled out too much new debt in the very recent period of time, looking like you are getting a loan just to pay off the previous one, and so on, going in fact towards a very probable bankruptcy.
These are just a few possible reasons for not getting a loan despite the fact your credit score is good. Of course there might be many other reasons, so the best thing you can do is to ask for the reason of the denial.
How about a denied loan without even a credit check?
Many lenders are not even perform credit checks, they are just interested in your income vs debt ratio and your current personal status. Can you repay your loan? Then you can get it, no matter what happen in your credit life 2 or 5 or 7 years ago. Unfortunately, rarely these lenders are banks – so no cheap credit for you basically.
In reverse: you may have the best credit score, go to e lender that doesn’t do credit checks, and still get refused. Why? We said it already, read again this article, more carefully this time, and with you mind focused on what is written.
Ready? Let’s get on with the details.
You’ve been making your payments on time, you have a stable job, but probably your credit score is not high enough and this happens for many reasons. These reasons are usually captured by a range of reasons, and there is now a new page called ReasonCode.org VantageScore, which details all these reasons why your credit score is not yet high enough.
The reason codes are two digit numbers with a corresponding description, for example, 32: The balances of bank cards or revolving credit accounts too high compared to credit limits.
Descriptions can be difficult to understand and may vary by credit reporting agencies, so VantageScore now offers an explanation of these and related suggestions on how to improve a contributing factor to your total credit score.
In order to provide greater transparency in the market and thus provide more financial power to consumers, the site also provides many financial tips that can be enough profit, videos, competitions and even a glossary code reasons. So if you are in a situation of denied loan without bad credit, look there for more details.