Despite a solid credit score
Q: I checked my credit score recently and it had gone up quite a bit, so I was feeling confident when I applied for a loan . But the lender still declined me. I make my payments on time and pay everything off eventually. What am I missing? —Marty
FP Answers:Credit scores get a lot of attention , but a score is only one of several things a lender weighs when reviewing an application. What happened to you is quite common, and understanding the full picture can help you improve your situation.
What the score does not capture is whether you can afford more debt. That assessment happens separately, and it draws on information your score never touches such as your income and employment and how much you already owe relative to what you earn.
Lenders determine their own lending criteria . Some are stricter than others and will calculate a minimum payment amount for credit cards you do not normally use.
Your employment history also plays a role and lenders want to see stable, consistent income for at least three months. Lenders prefer continuity.
Full Read:
- MSN: c/o Financial Post
- https://www.msn.com/en-ca/money/topstories/why-was-i-declined-for-a-loan-despite-a-solid-credit-score/ar-AA26xeuG?ocid=finance-verthp-feeds
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