Bad credit vs. Good credit but not enough?
How is it that people with bad credit can get approved for loans, whereas someone who has a good credit score (just not enough credit) can't? I mean, i've never been late for a payment, I always pay over the minimum..my credit score is teetering between 690-715. Why can't I get a loan on my own without a cosigner?
Public Comments
- The bank will give you... Y u r worring
- Usually when its a very big loan, financial institutions tend to want to see a long history of paying thing ontime. A short credit history be it bad or good sometimes will be frowned upon, by a bank you just have to find the right one for first time loans or something you may have better luck
- Sometimes they will turn you down because you don't have a long enough credit history. Your credit may be really good, but if you've only had credit for a short time,it's not enough for them to base a decision on.
- Thats the same with me.. I think it's because that they can request outrageous interest from people with bad credit.. anywhere between 15-30%. In the end, they will make more money off them than some one who has good credit, yet "not enough"
- With a score like yours the only reasons that you are being turned down have to be either you have not been in the bureaus long enough. Most lenders look for at least 3-5 years. Or you have limited credit history. Your credit score is made up of the following; 1. Payment history 35% 2. Time in bureau 15% 3. New credit 10% 4. Type of credit used 10% 5. Debt to income ratio 30% As you can see 1 2 & 5 are the most important score wise. If you have only been in the bureaus a short time, then obviously you cant have a long pay history. The other reason you might be getting turned down is most lenders look for "Like credit". For instance, If you are looking to purcahse a vehicle they want to see ho you paid for the last one. Being young and trying to get your credit established is tough, just keep paying your credit cards on time and you will get there. You might also try Capital-One their computer likes revolving lines of credit. (Credit cards).
* Some answers may have been provided by Yahoo! Answers.