I sure can't. The same bank that gave me a credit card with a $50,000 unsecured line would not give me a loan for $8,000 for a car after I was putting over 50% down! My FICO's are all over 750 and I have no delinquencies, 12% utilization. Thinking this may be a fluke, I tried with another bank. Same results.
Did you ask for a manual review yet? Two separate pulls for each application, or one pull for each decision by each department? There is an explanation somewhere, you just have to find out who knows what it is....
It was one of the on-line applications in both scenarios and there is no human being to ask. I figured with what I was putting into the transaction - FICO scores, down payment, etc it should have been a slam - dunk. It was a different pull from each lender. Since it is a car loan and the pulls were both done the same day they should count as one pull. Not that I care - I just put the amount I was thinking of borrowing from the first bank (the one with the $50K credit limit) on one of that bank's 0% offers on their credit card. That way, instead of loaning me the money at 6% with teh car as collateral they can loan it to me at 0% unsecured. You gotta admit - those bankers sure showed me how smart they are.
Was the car used? They might not do secured car loans on used cars over a certain age. It is not about rational, it is about "policy". "Car loans" are different from "credit cards" or "signature loans". Different people, different policies. Institutions run on policies, not on thinking. They do not delegate the authority to think. I, too, have been amazed at the spread in terms between when you ask, and when they think they have to sell. At 0% for x months, the banks probably view the lost interest as a sales cost, more like a casino's "gambler's special", intending to make up for it on the back end.
If you were indeed fully turned down, they do have to supply the reason for denial. This is a case where I would love to see the reason! Not "assuming" anything here, but have you checked your reports, or CC activity, any chance of ID theft? Are you self employed? Sometimes that throws a complication into credit apps.
It was for a new car. I can't wait to get the Adverse Action Letter. the last one I got indicated a CRA and used the reason "Too many Finance Company Accounts." How many did I have? NONE!!!! How do you dispute that? Better question - how do you get a negative number of trade lines in a certain segment? My CRA's are clean, with no evidence of Identity Theft. I am self-employed but..... c'mon - over 50% down?
Debt to available credit? Too many recent inquiries? Sometimes they internally score CR factors independent of FICO treatment.
The "denial" will come from the actual lender; it has nothing to do with the CRA. They will only reference the CRA used to pull your credit report. That "Too many Finance Company Accounts" is a new one! Are you sure they pulled the right report? (did they get you mixed up with someone else?). I would call the lender/finance compan and request written detail of reson for denial. That is a strange one!
An adverse action notice MUST be specific to the reason for denial of credit. It cannot be a generic list of reasons credit MIGHT have been denied. Otherwise, it does not comply.
