Credit scores, loan approvals & the approval process

Monello

Sexually compliant
PREMO Member
I was RV shopping a few months ago. I thought I might upgrade my rig. I would need a loan to make the purchase. Since I don't have a fixed address, I went online and found a lender that caters to people in my situation. I filled out a form online. Later I decided not to get a new RV. Someone called from the loan company. I told them that I didn't need the loan any longer.

Then I get a disapproved letter in the mail. I guess that would have been very embarrassing if I tried to go forward with the purchase. But here's what I don't understand about the entire process. The letter states that they got my information from Experian Consumer US. At the time of the loan my credit score was 827. Experian considers a range of lows at 250 and the high at 900. I remember being somewhat excited when my credit score broke 800. They said I had things that affected my score negatively. They listed:

Lack of recent bank-national revolving information
No recent revolving balances
Length of time accounts have been established
Too few accounts currently paid as agreed
Too many inquires the last 12 months

I currently have 2 credit cards. At the time of the loan I only had one. I pay my balance in full every month. I have 2 lines of credit that I hardly ever use. In the rare occurrence I use them, they get paid in full as soon as possible. I did miss a credit card transfer that was paid in full 5 days late. I have 2 mortgages on 2 different properties that have never missed a payment in over 10 years. I have no car payment nor any other debt obligation. I like to say I'm debt averse. I have been with both of my credit unions for over 30 years. I have never filed for bankruptcy nor ever defaulted on any loans. I have several income streams and savings in 2 credit unions. Just not enough cash on hand to buy an RV outright.

So to the lending professionals out there, is this a normal situation given the credit score? If I had so many negatives, why a score above 800? While we never got to the point of final numbers, I was looking at borrowing between $50 to $70K with a trade in and a decent down payment. In my ignorance I figured a bank would be happy to lend money to me. Interest rates are low but not if you can't get approved.
 

Sneakers

Just sneakin' around....
Not a pro, but I stayed at a Holiday Inn Express a few years ago. I check my score weekly. My rating is very high, but they still flag stuff like "haven't paid enough accounts on time", even tho I never miss any payments, or some bs about not using my credit card enough, or my outstanding credit is more than it should be, but my outstanding credit is like 5% of my limit. I even pay off credit cards in full ahead of schedule.

Take it all with a grain of salt. People with terrible credit ratings manage to get loans that they can barely pay back.
 

Sneakers

Just sneakin' around....
From my account. 1st negative, I have a CC I rarely use, but if I use it, they flag it's usage as a negative anyway, too much credit outstanding or something. 2nd negative, all my accounts were paid on time and in full. 3rd negative, my car loan is nearly finished, low balance, and is a fraction of the total value of my accounts, no other deficits.
It's like an inspection. They have to find something negative to put in the report, even if it's not true.

150007150008
 

gary_webb

Damned glad to meet you
Let me add to what Sneakers posted. How are they supposed to make money off of you if you pay all your bills in full and they can't charge you interest? And, if you have no debt, what's to stop you from paying off the loan early and they can't make money off you.

Notice there's a recurring theme here.

Making money off of you.
 

PeoplesElbow

Well-Known Member
I'd say it's due to a lack of tangible things like a house to "trap" you, an RV loses value very quickly and no fixed address they would have a hard time finding you to repo it.
 

Monello

Sexually compliant
PREMO Member
I'd say it's due to a lack of tangible things like a house to "trap" you, an RV loses value very quickly and no fixed address they would have a hard time finding you to repo it.
That's why I searched online for a lender that is familiar with full time travelers. I get that initially there is risk on their part but I was looking to borrow about 60% of the price. I would have quite a bit of skin in the game, even with a depreciating asset.

I'm going by the body of the letter that they sent me for the reasons why I was denied. I listed them above.
 
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