Why was I declined this loan?

[Aimster]

I co-signed a loan for my girlfriend for $2,050 from the bank for 12 months and she was rejected. She said they didn't give her a reason why she was rejected.

I thought all they looked at was the co-signers credit and it didn't matter how much she made or what her credit was..

 

[Cable God]

The co-signer's don't always make that huge of a difference at times. It depends on the situation.

 

[laurenlex]

A co-signer does not make up for a difference in debt to income ratio, I belive.

 

[SchrodingersDog]

You're too young.

 

[Vic]

In the US, federal law requires that an applicant be given a specific reason why their credit application was denied.

And the applicant's credit and income is generally still taken into some consideration even in the presence of the co-applicant. After all, if she's not the one who is to pay back the loan, then why don't you just take out the loan in your name?

 

[Mill]

Originally posted by: SchrodingersDog
You're too young.

No. As long as you are old enough to sign a contract and have the required credit score and income, they cannot deny you based on your age. That is illegal.

 

[DanDrop]

Call them and ask why the loan was denied. They have to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

 

[Aimster]

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

 

[Kishan]

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

 

[Vic]

Originally posted by: DanDrop
Call them and ask why the loan was denied. They have to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

All correct, except that the bank itself is not required to provide the declined applicant with the actual credit report used. Instead, the bank is required to give the declined applicant the contact information of the credit reporting bureau ("information used in making this determination of credit unworthiness was received from the following credit repository"), and then the applicant is entitled to receive a free copy of their report (minus FICO scores) from that bureau if they order it within the next 60 days.

Co-signers work well in the child/parent scenario, where the young adult child lives at home, works a low-wage job, and has unestablished credit. The parent can then back the child with the strength of their established credit and income.
In cases where the applicant has no income or has already established an unsastifactory credit history, then bringing on a co-applicant usually does little to help get an approval.


edit: lying on a credit application is a federal crime, punishable by up to 5 years in prison and $10k fine -- don't do it.

 

[Kishan]

I know someone who was rejected from a Best Buy card. Why? He put his YEARLY income at $33k, however that was actually his MONTHLY income:shocked:

 

[Aimster]

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

I thought they had no idea how much money you make?

Did you get one of those pre-approved pre-selected amex letters in the mail? I heard that just because it is pre-approved or pre-selected doesn't mean you will qualify for it.

 

[cyclistca]

Well I'm glad to hear that your girlfriend has some morals. She did the right thing by telling them the truth. I don't know if it would be fraud but I'm sure she could have gotten into sore sort of trouble if she had lied to them.

Credit is not right. You have to earn it. If she keeps paying of her card on time she'll improve her owen credit score and then she can try again.

 

[Kishan]

Originally posted by: Aimster

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

I thought they had no idea how much money you make?

Did you get one of those pre-approved pre-selected amex letters in the mail? I heard that just because it is pre-approved or pre-selected doesn't mean you will qualify for it.

no, that was me calling up amex and just applying- will not do that again, until I have established some decent credit. Also they know how much you make, but that doesn't include unreported and such, but they check your bank accounts.

 

[lastrhino]

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

I'd say you're the one with the lying problem.

 

[Mill]

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

I thought they had no idea how much money you make?

Did you get one of those pre-approved pre-selected amex letters in the mail? I heard that just because it is pre-approved or pre-selected doesn't mean you will qualify for it.

no, that was me calling up amex and just applying- will not do that again, until I have established some decent credit. Also they know how much you make, but that doesn't include unreported and such, but they check your bank accounts.

I can promise you that American Express does not check your bank accounts, nor do they have access to your Pay Stubs or W-2 unless you give them that information. That being said, be honest when answering the question. If you live at home with your parents and it asks for household income, then feel free to add their income to yours. If it asks for personal income then be honest there as well. The bad advice and myths in credit threads completely baffle me.

 

[zixxer]

Originally posted by: lastrhino

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

I'd say you're the one with the lying problem.

he also keys expensive cars, and made up a HUGE lie about his car getting stolen... but they left the wheels (WTF?)

yeah we haven't forgotten about that...

 

[Anonemous]

Originally posted by: armatron

Originally posted by: lastrhino

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

I'd say you're the one with the lying problem.

he also keys expensive cars, and made up a HUGE lie about his car getting stolen... but they left the wheels (WTF?)

yeah we haven't forgotten about that...

ouch didn't know that about the OP. Why would he key expensive cars?

 

[Ronstang]

Originally posted by: SchrodingersDog
You're too young.

Maybe someone at the bank hangs out here and realizes he is a chronic liar.....that could have a big impact.

 

[Kishan]

Originally posted by: Mill

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

I thought they had no idea how much money you make?

Did you get one of those pre-approved pre-selected amex letters in the mail? I heard that just because it is pre-approved or pre-selected doesn't mean you will qualify for it.

no, that was me calling up amex and just applying- will not do that again, until I have established some decent credit. Also they know how much you make, but that doesn't include unreported and such, but they check your bank accounts.

I can promise you that American Express does not check your bank accounts, nor do they have access to your Pay Stubs or W-2 unless you give them that information. That being said, be honest when answering the question. If you live at home with your parents and it asks for household income, then feel free to add their income to yours. If it asks for personal income then be honest there as well. The bad advice and myths in credit threads completely baffle me.

Mill, do you think that rejection from Amex hurt my credit? How much do you figure?

 

[Yax]

So you're dating an unresponsible b!tch hore who's trying to use you to get money from the bank, but the bank won't allow it. I don't see what the problem is. I think the bank is doing you a favor. You don't have anything to complain about here.

 

[Aimster]

Originally posted by: KPSHAH316

Originally posted by: Mill

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: KPSHAH316

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

not smart! my brother told my to inflate my income for an amex card, and I was rejected! Probably fvcked up my score as well, so NEVER do that!

I thought they had no idea how much money you make?

Did you get one of those pre-approved pre-selected amex letters in the mail? I heard that just because it is pre-approved or pre-selected doesn't mean you will qualify for it.

no, that was me calling up amex and just applying- will not do that again, until I have established some decent credit. Also they know how much you make, but that doesn't include unreported and such, but they check your bank accounts.

I can promise you that American Express does not check your bank accounts, nor do they have access to your Pay Stubs or W-2 unless you give them that information. That being said, be honest when answering the question. If you live at home with your parents and it asks for household income, then feel free to add their income to yours. If it asks for personal income then be honest there as well. The bad advice and myths in credit threads completely baffle me.

Mill, do you think that rejection from Amex hurt my credit? How much do you figure?

I think Mill is right about this. I've heard it before as well.
Did it hurt my credit that I was rejected for this loan even though I was a co-signer?

 

[mwtgg]

Originally posted by: Anonemous

Originally posted by: armatron

Originally posted by: lastrhino

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

I'd say you're the one with the lying problem.

he also keys expensive cars, and made up a HUGE lie about his car getting stolen... but they left the wheels (WTF?)

yeah we haven't forgotten about that...

ouch didn't know that about the OP. Why would he key expensive cars?

They don't tip well.

 

[Aimster]

Originally posted by: mwtgg

Originally posted by: Anonemous

Originally posted by: armatron

Originally posted by: lastrhino

Originally posted by: Aimster

Originally posted by: DanDrop
Call them and ask why the loan was denied. They has to give you a specific reason why it was not granted. My guess is that your GF has pretty bad credit report. Co-signers do not necessarily guarrantee approval, moreso if your credit report is not that great either.

Incidentally, you can request that bank to provide you with the credit report that they used to evaluate the denial.

She has no credit. She only has a $200 credit card and was rejected from a Discovery Card she applied for. She also has a problem with lying and told them exactly how much she makes a year. I told her to put double the amount because they would have no idea, but the "lord" is watching... WHATEVER.

I'd say you're the one with the lying problem.

he also keys expensive cars, and made up a HUGE lie about his car getting stolen... but they left the wheels (WTF?)

yeah we haven't forgotten about that...

ouch didn't know that about the OP. Why would he key expensive cars?

They don't tip well.

LoL.

 

[Insidious]

thank your lucky stars for this fotuitus turn of events.

As soon as she broke up with you, that monthly bill in YOUR mailbox would have been a bummer.

Hope you learn this lesson the easy way.

Further, next time YOU needed a loan and hers was still outstanding, you wouldn't be able to get credit because that loan would be considered YOUR debt.

-Sid

That co-signer scam is almost as old as elevator passes. :beer: