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Sunday, April 19, 2009

I Have A Great Credit Score. Why Am I Getting Declined For Loans?

What do mean by great credit score? Unless you have a FICO credit score of at least 720 you can just about forget getting approved any kind of credit. It's the only way to get any kind of credit with decent terms.

Banks, lenders, and credit card companies aren't just handing out money like they used to. That goes for any kind of credit: credit cards, mortgages, car loans, student loans, etc. Back in the day of irresponsible lending it fairly easy fro anyone to get credit. But those days are gone. Probably forever or at least in our lifetime. In the past if you had a FICO credit score of 720 you would get a loan with decent terms and no questions asked. if you had a FICO credit score below 720 you could probably still get a loan or credit card but, probably would pay a higher interest rate or more fees. Today a FICO credit score below 720 can mean no loan, no way. Lenders today are being very cautious to who they lend money to. If you have a FICO credit score below 700 it is very difficult to get a loan right now. If you do qualify for a loan you will probably be looking at paying a higher rate of interest and higher fees than you would have just a couple of years ago. So when you say you have a great credit score it needs to be 700 or more. The days of a FICO credit score in the 600 range being considered great credit are gone.

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