[QUOTE=Poppinjay]Hi NoSoup, I have some questions...
I am not a finance head. We've gone through some real oddities through the past few years. First off, I'm amazed at how sharp some lenders are and surprised how sloppy others are. I found out that the loan I had on my Jeep was going four months into arrears even though it was paid off. What tipped me off was the notice that it may be repossesed. I called, left a message of hellfire and brimstone, got a short note saying it was a mistake --NO [QUOTE]APOLOGY--
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But that's just the tip... whenever my wife and I apply for a subsantial loan, mortgage etc. we are told we have scores in the 700's. Our ratio is extremely tight because we have student loans up through grad school, and in fact would like to take on more so we can really get into the high earner category... but we drive old beaters, we wear unfashionable clothes and wear old shoes so we stay on the line. The thing is, we get turned down for this, approved for that. We bought a house at a great rate, looked at consolidation of all debts, and didn't even get the courtesy of a return call. I purchased an anniversary ring for our 1st, was turned down for a jewelry company loan, but had much more than the cost available in credit. I bought it for cash, which left us a little dry for books that semester. But, we graduated.
Another niggling thing is a credit card I paid off five years ago that still pops up on reports as being unpaid. I have the final statement, but I sure hate toting it around after four moves. I called them after the last time and threatened court action, but lenders have ignored that part of my report and believe me when I say it's wrong. This card company was bought out twice as I was closing it out. Why do we get turned down for penny anty things, but approved at low rates for big things? Also, how is it that so many things slip through the cracks that could seriously hurt us?
Thank you for this thread. It needs a bump frequently.
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The reason you get such great rates on many of the big ticket items you purchase is because typically interest rate is based on your credit score more than any other factors. Because you have great credit, you qualify for very low interest rates. However - the reason you are likely being denied credit for other things is because of your high debt-to-income ratio. It has little to do with your credit standing, your ratios are probably just too high for the lenders guidelines. Additionally, often times there are more flexible programs for big ticket items - such as a house - than there are for a typical credit card or smaller end item.
As far as things falling through the cracks that potentially hurt you....
Unfortunately, it's the way the system is set up that makes wrong information damaging a lot more often than it is helping. Everyone starts with a perfect credit score, and pretty much everything you do related to credit damages that score. Although I can't say I've never seen incorrect information help a score - more often then not the information will damage it.
The reality of the situation is that credit reporting agencies have to rely on lenders to report information - and unfortunately they sometimes don't report it correctly. Because of the sheer number of people they keep track of, getting that information fixed often is a lengthy and frustrating process. What I would recommend doing is contacting the credit reporting agencies and asking for the form to report incorrect information on your credit report. It may take a number of days to get done, but they have to verify it or remove it within a set amount of time. The nice part is, once you get it taken care of from the credit reporting agency's side, it should be taken care of for good.
As far as lenders ignoring what you say is incorrect, they probably will continue to do so. There are very few institutions, if any, that will take your word for it without any proof of what you are saying. I know it may be frustrating, but a lot of people will tell you that the poor marks on their credit reports are mistakes, when at least a significant portion are not. Lenders pay for the ability to pull a credit report - they should have every right to expect that the information on that report is accurate.
Hopefully that helps - if you have any more questions, please let me know
