Minimum Credit score for bank loan

[Connect101]

Hello does anyone know the minimum credit score for a bank loan?

 

[epah]

No. Depends on many things, type of
Loan, affordability, credit score, etc basically no one can tell you how many points you actually need

 

[hellfire]

No. Depends on many things, type of
Loan, affordability, credit score, etc basically no one can tell you how many points you actually need

This and:

• Income
• Expenses
• Where you live
• Employment status
• Performance on existing loans/debt

 

[Dan C]

I'm a loan shark, how much do you need?

 

[genetic]

Maybe you shouldn't be applying for a loan if you are asking this kind of question...

 

[hellfire]

Maybe you shouldn't be applying for a loan if you are asking this kind of question...

S/he may have already applied and been rejected.
The natural response is to question why.

 

[Kosmik]

Hello does anyone know the minimum credit score for a bank loan?

If you have to ask.....

 

[ProfA]

Not sure why this type of info is not freely available and accessible.

 

[Jehosefat]

Not sure why this type of info is not freely available and accessible.

Because each bank has their own credit scoring model that is on a different scale and has different criteria at different times (and for different loan values). So to make it freely available, each bank would have to publish it's credit scorecard (most banks have different scorecards per product) as well as what their current criteria are. And even then, the credit decision process is often not that straightforward because they might not want to lend in a certain area due to some sort of concentration risk.

 

[ProfA]

Because each bank has their own credit scoring model that is on a different scale and has different criteria at different times (and for different loan values). So to make it freely available, each bank would have to publish it's credit scorecard (most banks have different scorecards per product) as well as what their current criteria are. And even then, the credit decision process is often not that straightforward because they might not want to lend in a certain area due to some sort of concentration risk.

So they can make it available, but don't want to because.

 

[Jehosefat]

So they can make it available, but don't want to because.

Well why would they? it would just make more work and more hassle for them. Much easier to just tell applicants "computer says no" rather than having to explain why their application got denied and all the commensurate bitching that will result. I wouldn't publish it if I was a bank and I'm pretty sure that you wouldn't either if you were in their shoes.

 

[hellfire]

So they can make it available, but don't want to because.

They have spent huge amounts of money on developing and maintaining their scorecards. It's proprietary information that they don't want their competition to see.
And they also don't want debtors manipulating their data to get better loans/rates.

 

[ProfA]

Well why would they? it would just make more work and more hassle for them. Much easier to just tell applicants "computer says no" rather than having to explain why their application got denied and all the commensurate bitching that will result. I wouldn't publish it if I was a bank and I'm pretty sure that you wouldn't either if you were in their shoes.

More work? To tell a client exactly why he was refused a loan? Better to feed a client BS? You must make the perfect client. I prefer to be informed. Suppose I am what is referred to as a "difficult" client.

 

[supersunbird]

Not sure why this type of info is not freely available and accessible.

What type of info?

 

[ProfA]

What type of info?

topic of the thread.

 

[Jehosefat]

More work? To tell a client exactly why he was refused a loan? Better to feed a client BS? You must make the perfect client. I prefer to be informed. Suppose I am what is referred to as a "difficult" client.

Yes, more work. If your website says that the minimum score to get a loan is 600 and someone gets a score of 610 and you decline the loan for another reason (remember that banks are in no way obligated to lend you anything) it will turn into a huge argument because they are over your published threshold. Or if your threshold changes and all of a sudden some people who were above the threshold are now below you will then need to explain your entire process around changing the threshold to each of them. Much, MUCH easier to not have any of it published... (and again, no obligation to publish any of it)

You've never worked in a customer facing role have you?

 

[supersunbird]

topic of the thread.

Because then people will game the system, refer to ebucks thread for examples, and it's not dependent only on the credit bureau score anyway. And each credit bureau have their own scoring and can show different info. And by law the loan provider have to give you the reason why they declined you and if they don't you lodge a complaint with the credit Ombud. And you can check out your own score either for free with some credit bureau or paid whenever you want.

How 'bout them apples?