Denied a loan? What lenders need to tell you

Written by Scrambler   // May 11, 2011   // 1 Comment


I use my Wrangler to get to and from my job with the State, and I need, ok, want a dually for my second vehicle. Diesel engine, but nothing fancy, and used is fine.

I went to my credit union, which I have had an account with since I was 13 or 14, and asked about rates and fees. Turns out credit unions have killer deals on auto loans, with rates that start at less than 4%, which surprised me, and is a heck of a lot cheaper than the buy-here-pay here dealers in town.

I found a good deal on Craigslist for a Dodge with a Cummins, made a handshake deal with the seller, and I said the deal is only good when I get the loan from my credit union. That was smart of me. (Hey, eMoney, you like this foreshadowing I use here?)

Back to my CU I go, and fill out an application for the loan. I give them the make, model, mileage, and year, and a bunch of personal information about my finances. To make a long story short, my CU denied me for the loan! I won’t tell you why, because that’s too personal and not the point of this, my first-ever posting on the Web. I told the seller the deal was off, which he was totally cool about because I told him earlier the deal depended on me getting a loan.

Under a new law, lenders must tell you which credit bureau it used to judge your credit score. The three most banks and credit unions use are Experian, Equifax and TransUnion, according to the loan officer at my CU. The lender must also tell you how to get a free copy of your credit report. You must respond in 60 days to get a free copy of your credit score.

My loan officer gave me a copy of an article from a CU magazine that said that starting July 21, 2011 people denied credit or who get crappier rates than advertised will receive a free credit score automatically.

To summarize: If you are denied credit or get less than the best rate, the lender must send you letter explaining why. You have the option to get a free credit score. But starting on July 21, you will get the letter plus a free credit score. FICO, which creates credit scores, has a Web site that explains all of this further at




  1. By eMoney, January 23, 2019

    Actually that was very nice foreshadowing Scrambler, lol! Interesting story. Too bad you didn’t get approved, or maybe it was a good thing since you don’t really need the dually. I must agree with you about credit unions having killer rates. I happen to have my auto loan with my CU.


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