Credit Resources
Declined Credit Decline If you were declined based on your credit report you should immediately get a copy of your credit report. After you receive the report. Determine what is it that’s derogatory on your report. Is it accurate? If so, there really isn’t much you can do about it on the credit report. Then all the lender who declined you. Ask the following:
It is very possible, depending on the size of the company and what you have applied for that you may be told that you have to wait 6 months to be re-evaluated or that it is against their policy and cannot be re-evaluated. In almost all cases, if not all, the company can re-review your application if they want to. If you are told something like this, it is only a first line employee telling you guideline procedures. There will almost always be someone who has the power to re-evaluate your application and that’s what you want them to do. Don’t think you are being too pushy, you can be sure there are others doing this very thing. Once you speak with that person, don’t complain, give them information that they feel they could use to justify approving the application. Most of the time, they want to try to approve you if they can. Then ask them what it would take for your application to be approved. If they reverse the decision, great, if not, follow their advice on what it would take to get approved or put you in the best position to get your loan request approved. Was there one specific thing that was predominant in the decline? How close were to you an approval? Find out these details. You need to know where you stand so you’ll know what to do to get approved next time. What do you do now? You still need that loan. Now you know exactly what your credit looks like. Find another viable lender. But don’t just start filling out loan application. Do the following: Call them, ask to speak with a credit officer. Tell them what you type of loan you want, the amount, etc.. Ask them what factors they look at in decisioning those loans. Then tell them your income, what your credit bureau score is and roughly what your monthly totals are for fixed debt or anything else that would play a major role in approving that loan. Try to get them to tell you if they think you have a good chance of getting approved. They may be reluctant to do this, but if you push an actual loan officer, they will probably give you a good idea. You are in essence, trying to use what you now know about your credit to do a verbal before you actually apply. This is important. You have already been declined once, you don’t want to be unnecessarily be turned down for the same thing again or any other reasons that you can avoid by talking with the lenders first, if possible. If you are dealing with a credit card issuer, the way to handle this is to call the customer service number and ask to speak with a supervisor. Credit Doctors / Bureau Cleaning Services Some people have tried in recent years to get Credit Doctors to clean up their credit. This has certain Drawbacks associated with it. Most of these companies rely on existing rules to help you clean up your credit. If one of your creditors reports a derogatory item on your credit report, there are rules to the effect that if you contact the credit agency and dispute that reporting, the credit agencies have a limited number of days to contact that creditor and ask for a verification of that reporting. If that company fails to reply on time, the credit bureau may have no choice but to delete that derogatory record from your file. These credit doctors will bombard the credit bureaus with a volume of these request which the credit agencies and the companies reporting you delinquent cannot keep up and the credit agencies will be forced to remove the derogatory reporting from your file. Sometimes these derogatories will re-appear on your credit file again later and in other cases some will not come off because the contact information for that creditor is no longer valid. So if you have a lot of things wrong on your file, this may not work. Chances are, it will not work for all of the tradelines reporting and it will remove most of them but not all of them. When it comes to your credit report, even one or two very derogatory reportings will do most of the damage to your credit score. Divorce In a divorce, both parties separate debts and believe they are not responsible for any previous joint debts they have not agreed to pay. This will often result in credit problems….more Any joint loans, be they personal loans or business loans that a couple entered into with a lender while they were married will continue to be joint debts after the couple divorces regardless of what the husband, wife, attorneys or court orders. When the couple entered into a joint loan with the lender, the lender approved that loan based on the information of both the husband and wife. Their contract, as agreed upon by the couple, is with the husband and wife together. If there is a divorce, the couple cannot just split up the debts as they see fit or have an attorney or even the judge of a divorce court decide how the loans will be split up. The lenders have to agree to any separation of debt and they have every right to refuse to. The contact was between you, your spouse and that company, not anyone else. It is a legally binding contract, therefore, 3rd parties have no legal authority to alter it afterwards. For the lender to convert any existing debt from joint to individual is a completely new credit decision. They may decide that the income of one of the parties is not enough to support the debt that was approved jointly before, or there may be many other legitimate reasons that the lender felt strongly enough to make the loan together, but would not have made the loan if one of the people had applied individually. Contact the lender directly and find out what their policies are for a divorce situation. If they tell you you must re-apply, do so. If they will not approve you, you can take another loan out elsewhere and pay out the existing loan and close the account. If you end up leaving it joint but your spouse agrees they will pay it themselves, keep track of the debt to make sure your spouse is paying on time. Get the institution to send a copy to your address if possible. If your name is on the account, it will damage your standing with that company if the account goes past due, and it will damage your credit if the account goes 30 days Past Due New Social Security Numbers Some people who have had major credit problems have gotten a new social security number being told this will be a “clean slate” wrong move. This is only part of the story. It’s the rest that could be your nightmare. When you are issued “a new” Social Security Number from a company, it could be that SSN has been stolen from the Social Security Administration, meaning it is a number that they intended to give to someone else in the future. That might work in the short term, but if the Social Security Administration finds out, you may be contacted. It will not be a pleasant or short experience. Even though you have gotten a “new” SSN, once you apply for personal loans or small business loans, your old SSN will almost certainly ALSO pop up as another SSN. This is a major red flag to lenders. They realize there are a variety of explanations for this, none of which are good. They will think either: 1) You are a fraudulent applicant and decline you 3) They will probably not think you have a son or daughter with
the same name as you (The best scenario) Since this “new”
SSN will have a more recent issue date than your true one, it may
not be old enough to obtain credit. If it is, your true SSN issue
date better be at least 15 years older than the issue date of your
adopted SSN. In all likelihood, this will not work even in the best
of circumstances. You will create more problems than you have solved.
Do not do this. |
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