What do I do when a Credit Application is declined?
If the customer is unsure of why they received a credit decline, please have your customer call our support line at (888) 850-3359 to learn about their credit decision.
Most likely, your customer doesn't meet our credit criteria, but there may be a way to move the deal forward.
Reasons Why a Customer Might Be Declined
- FICO credit score is too low
- Debt to Income Ratio (DTI) is too high
- Late mortgage payments or history of delinquency
- Other notations on their credit history
- Foreclosures, Bankruptcies, Charge Offs, etc.
Ways to Move Forward
- If a customer has a high DTI, you can offer to run credit with a co-borrower
- Customer Has a Credit Freeze
- Ask if there is any other people on title who would be willing to be the applicant on the loan and for whom we can check credit.
Message In Orange Will Tell You if There is a Next Step Required
- An on-screen decline message suggests next steps such as verifying property type.
- When your customer is declined, they immediately receive an email detailing the reason for decline.
- Your customer will also receive a detailed decline reason (Adverse Action Letter) via post within 30 days.