If you have ever applied for a loan either mortgage, car loan or a student loan, have been denied and do not understand why, especially seeing that there are times when people with bad credit got the loan, then it 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.
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, your credit score is good, but your loan application was denied. 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.