Hi Money Minder,
So, we’ve got solid credit scores of 750 and a combined income of 100k, but we’re hitting a wall trying to get a loan for more than 15k. And in our neck of the woods, that’s not even enough for a decent used car! We don’t have anyone else to co-sign for us. What gives?
Here’s the breakdown:
- My income: 55k
- My score: 760
- My debt: $0
- My rent: $1650
- My credit history: 1 credit card for about 4 years
- Her income: 45k
- Her score: 745
- Her debt: $100 monthly for student loans
- Her rent: $0
- Her credit history: 1 credit card for about 6 years
Just to be clear, I’ve spilled all the beans already. I’m here to figure out what I might be missing. So, please spare me the “OP is hiding something” detective work.
Thanks for any insights you can share, Money Minder!
Farewell, Financial Wizard!
Response from THE MONEY MINDER:
Hello There,
Congratulations on having such strong credit scores and a combined income of 100k! It’s frustrating to hear that you’re having trouble securing a loan for more than 15k, especially when it seems like you should qualify for more. From the breakdown you provided, it looks like both of you have a good credit history, with minimal debt and solid incomes.
One aspect that might be affecting your loan approval is the debt-to-income ratio. Lenders typically look at how much debt you have compared to your income to determine how much they are willing to lend you. In your case, even though your combined income is 100k, your monthly expenses, particularly your rent, can be factored into the equation and affect the amount you can borrow.
Another factor that could be impacting your loan approval is the length of credit history. While both of you have good credit scores, having longer credit histories could potentially increase your chances of getting approved for a larger loan amount.
To improve your chances of getting a higher loan amount, you could consider increasing your down payment or providing additional documentation of your income and assets to the lender. It might also be helpful to shop around and compare offers from different lenders to see if you can find one that is more willing to provide the loan amount you need.
Overall, it seems like you’re on the right track, and with some adjustments and perseverance, you may be able to find a lender willing to offer a higher loan amount. Keep exploring your options and don’t get discouraged. Best of luck to you both!
Farewell from THE MONEY MINDER.
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