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NoSoup · 10-26-2004, 07:47 AM

[QUOTE=Averett]

A) Did the original denial of loan effect my score?
B) Will it effect my score if I apply again and are denied?
C) If I need a cosigner, do banks generally require that the cosigner also belong to the same bank?
4) How trustworthy are online loan companies?
QUOTE]

A) No, being denied does not affect your score - however, actually pulling your credit report - if you are approved or denied, will slightly damage your score, especially when you have it done often.

B) Yep, but the denial part doesn't matter. Whenever a lender pulls the report, it dings your score. If you are planning on applying a couple of different places, apply on the same day, as multiple inquiries on the same day damage your score less

C) Typically they don't, although if it is a credit union they at least become a member.

4) The only one I really have experience with is Ditech, and the experience wasn't a pleasant one. One of my clients had a second mortgage through them and they weren't made aware that there was a $5000.00 pre-payment penalty, and that the 9.5% interest rate they agreed to was only a teaser rate, and their real rate was going to be over 14% after 3 months. However, that is just a single case, so you may want to check around for more info.

On a side note: You said that you only owe $1,200.00 on your car? If the bluebook value is high enough and the car is in good enough condition, you may want to consider consolidating your debt using your vehicle as collateral. It will likely be a far, far lower interest rate and will look better on your credit report. Just figured I'd throw that out there as an option.

10-26-2004, 07:47 AM	#3 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	[QUOTE=Averett] A) Did the original denial of loan effect my score? B) Will it effect my score if I apply again and are denied? C) If I need a cosigner, do banks generally require that the cosigner also belong to the same bank? 4) How trustworthy are online loan companies? QUOTE] A) No, being denied does not affect your score - however, actually pulling your credit report - if you are approved or denied, will slightly damage your score, especially when you have it done often. B) Yep, but the denial part doesn't matter. Whenever a lender pulls the report, it dings your score. If you are planning on applying a couple of different places, apply on the same day, as multiple inquiries on the same day damage your score less C) Typically they don't, although if it is a credit union they at least become a member. 4) The only one I really have experience with is Ditech, and the experience wasn't a pleasant one. One of my clients had a second mortgage through them and they weren't made aware that there was a $5000.00 pre-payment penalty, and that the 9.5% interest rate they agreed to was only a teaser rate, and their real rate was going to be over 14% after 3 months. However, that is just a single case, so you may want to check around for more info. On a side note: You said that you only owe $1,200.00 on your car? If the bluebook value is high enough and the car is in good enough condition, you may want to consider consolidating your debt using your vehicle as collateral. It will likely be a far, far lower interest rate and will look better on your credit report. Just figured I'd throw that out there as an option. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...