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Third Federal Bank - Third Federal Discriminates Against Retired Folks

Mortgage
Review by mjitzo200007 on 2012-11-25
Rating: StarEmpty StarEmpty StarEmpty StarEmpty Star
CLEVELAND, OHIO -- My wife and I applied for a consolidation loan after we received a "Special offer" in the mail. We have very good credit, never missing any payments. They gave bogus credit ratings to deny our application. We are filing complaints with state and federal agencies.
Comments:2 Replies - Latest reply on 2012-11-26
Posted by trmn8r on 2012-11-26:
What evidence is there of "discrimination against retired folks"?
Posted by Vinnie11 on 2012-11-26:
Your credit score is affected by many factors. Maintaining an excellent payment history is only one component of the overall score. Another is credit utilization. This accounts for nearly a third of your score. If you have (for example) a credit card open and have used more than 30% of the credit line, that will have a negative impact on your credit score. $6,000 charged on a $10,000 card will hurt you even if you are paying on time each month. Separate from your score, when applying for a loan, they look at your debt-to-income ratio. They add things that you pay each month (mortgage, auto, credit cards, etc) and compare it to your income. Even if you pay all of those 100% on time, if your debts are high in comparison with your income, this will also negatively impact a loan decision. It isn't discrimination, they scrutinize everyone this way and things are 10 times worse since 2008. I would bet that once you pay down the balances a bit, you won't have any problem at all getting that loan.

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