Turned Down for Large Purchase Loans

You Can Be Turned Down For Loans

The hard truth is that if your credit score is less than what your lender considers to be an adequate risk, you can be turned down for a loan. As each lender is different and uses different criteria on which to base lending decisions, there is no hard and fast rule as to the minimum credit score you need to qualify for each type of loan. However, the general rule says that a FICO Score of less than 650 is considered a risk.

Depending on your actual credit score and a variety of factors unique to each lender, you may find trouble in buying a home, buying a car or even making other major purchases such as furniture and electronics.

The good news is that even if your credit is not quite so stellar, there are definite ways you can repair it, improve your FICO score, and qualify for loans. This process can be done in three easy steps:

• Get your credit report and identify errors or negative items.
• Contact creditors with a plan for repaying old debts.
• Employ the help legal professionals to remove negative items.

Many people have found that using credit professionals to remove negative items from their credit report has greatly benefited them in the long run.