You have worked so hard to achieve that 800 credit score and are shocked when your application for a new credit card or loan is swiftly denied. In this more conservative age in lending, a near perfect credit score does not guarantee acceptance of every application.Furthermore, credit scores are considered in addition to other factors. Some reasons you may still be denied include:
Employment or Income Matters
FICO scores do not indicate whether you are currently employed. Your FICO score is derived from information obtained from credit bureaus. This contains your payment and balance history. However, this information does not indicate your employment status and your ability to pay off any new liabilities.
Even if your credit score is great, there may still be negative information in your credit report, such as a bankruptcy you filed six years ago. Some banks have a standard policy in not giving loans to anyone who has a bankruptcy, even if their current credit score is great.
Credit scores are based on information contained in a credit report and use various algorithms, each bank can use its own scoring model that emphasizes certain variables over others which may not weigh in your favor.
Banks may use one of the credit scores from one of the three major credit bureaus. However, each one of these scores is different from the other two. Incorrect information with one bureau may be lowering the score. Check your reports and quickly respond to any errors.
Banks have their own rules when determining who is a healthy risk for the bank. They may have a policy against lending to people who have a short credit history, ie. less than three years. They may also reject applicants who seem to jump from opportunity to opportunity just to get new sign-on bonuses and then quickly close the account.