A few years ago, we took out what we didn't know at the time was one of
those "high risk loans" to pay bills off and make a few home improvements.
I've now found myself divorced and I am trying to refinance both into one,
15 year loan no bank wants to touch me. Period. I have excellent credit and
have never, ever been late on any bill.
Any suggestions? I've heard that some people have sued these companies that
offered these loans. That's fine, but I just want a bank/company to help me
Who is required? The banks for telling me "no"? Well if that is the case, I
can understand mostly why they wont take a chance on me. But still, if
places help people with "bad credit", there has got to be a place for "good
The credit grantor (in this case the bank) has to tell you why, and what
information they used, IE which credit reporting company. Said credit
reporting company is required to provide you with a copy of your credit
report, if you where denied credit.
So get the written denial from the bank, and call the reporting company,
the info should be on the denial letter.
There's more to good credit and loans than simply paying on time. Go to one
of those Internet sites and get your credit score. Lenders look at many
things, the two most important being income to debt ratio and payment
history. You could be paying everything on time and still have a score of
650 to 700, and many lenders won't touch that. They also look at credit card
balances. Owe more than 50% on your cards and it's a big negative. Owe more
than 90% and they won't want to know who you are even if you never missed a
payment. There are many online debt calculators that will tell you
accurately where you are. A high risk loan in itself shouldn't give you a
bad rating. Living in the same place for a long time and steadily employed
with the same company is a plus. Every time you apply for credit it lowers
your score. More than 10 open accounts in the last 5 years, lower it some
more. Live in a bad neighborhood and it could be lower. They may deny this
but it's true. Out here they illegally asked my age when I applied for a
mortgage. Banking like medicine used to be a profession. There are no
professions anymore, only industries. You score is all that matters to them.
My score was something near 800...because this "high risk loan" was over and
above the value of the home, no one wants to help...I would hope that my
good credit would be a basis for taking a chance on me.
Surely you knew it was a high risk loan. These usually are accompanied by
excessive high processing fees, highest amount allowable by law interest, or
some other tell tale sign.
You do not seem naive about loans, so it makes one wonder why you didn't
check out a reputable bank b/4 signing on the dotted line for a better loan.
Being it was only a few years ago, having credit through a high risk
association, raises a red flag with reputable banks.
I believe by law they must tell you in writing without asking why your
request was denied.
In America, anyone can sue anyone. It's whether you win or lose which makes
And what kind of loan are you applying for? If it's a home loan
secured by a mortgage, how much equity do you have in the house?
Normally if you have equity, a good payment history, and income,
getting a loan shouldn't be a problem. Why was the original loan high
Really. You didn't know. Did you make the payments on this loan as
Then you should have no trouble securing any loan which your income and
excellent credit qualifies you for. What reason were you given for the
turned down loans?
If you've been turned down for credit you must have been told why. If it's
information on your credit report, then you are entitled to a free copy of
your report. Get one and look it over for any possible bad marks.
The thing of it is, no bank *ever* wants to help you. They only loan you
money to help themselves. No matter how good a risk you are these odds dont
justify it. Basically, if you dont pay they lose since if they take your
house they are still losing money on the deal. They want a deal where
whether you pay or not they still come out ahead. Then again I'm no expert,
just telling you what I think.
Did you talk to whoever made the loan in the first place?
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When I said banks dont make loans out of the goodness of their hearts
I wasnt trashing them. It's just the way of the world and there is
nothing wrong with it. What is wrong here is that you seem to want
someone to risk their money without you offering sufficient
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