Turned down for a student loan, can someone translate the “Reasons” to English.?
I was recently turned down for a private student loan from Chase Financial. I requested to know specific reasons why I was turned down, and I just received a a letter giving me the reasons for both me and my co-signer (Father).
Me:
1) Excessive recent utilization of revolving trades.
2) Too few revolving credit accounts closed at the consumers request.
Co-Signer:
1) Amount of credit available on revolving trades.
2) Time since delinquency is too recent.
Can someone please tell me what that means?
P.S. I was able to get a car loan about a year ago with no co-signer, and I did not need one for my student loan for the 08-09 school year.
Thanks.
“Revolving trades” is fancy language for what normal people call “Credit Cards” – they’re saying that you’ve been using your credit cards a lot, lately.
“Too few accounts closed” – it’s not a good idea to collect unused cards. They’re saying that you have older accounts that haven’t been used in a while, yet, they’re sitting there, hogging some of your available credit.
The cosigner – ah, amount of credit available means that dad has already tied up a healthy percentage of his total available credit.
Time since delinquency is too recent – at some point, in the last few months, your dad fell behind on one or more cards. They’ll ignore that, after a while, but it’s been too recent, and they’re not going to presume that he’s out of the woods yet.
A car loan a year ago and a student loan today are two entirely different things. A car loan is a collateralized loan – if you don’t pay, the lender repossesses your car, based on its security interest. There is no collateral for your student loan, so they’re looking for a cosigner as a guarantor.
Also keep in mind that banks have significantly tightened their lending standards in the past year. I know you have read about the worldwide banking and lending crisis.
I hope that’s the information you were looking for – good luck with that loan!
