Your loan application may be disqualified even after you receive an initial offer if certain events occur. Prior to origination, if your credit history indicates any of the events below have occurred, then your application will be disqualified. A subsequent disqualifying event means:
- The qualifying credit score drops (i) more than 25 points since the time of the credit report used to determine your current rate, and/or (ii) below 560;
- Your monthly debt obligations* listed on your TransUnion credit report(s) increase by more than the greater of (i) 3 percent of monthly income, or (ii) $200, since the time of the credit report used to determine your current rate, and you did not previously disclose the existence of such debt obligations;
- If any of the accounts on your credit report are currently in collections or 30 or more days delinquent; or
- If there is any inquiry or new account on your credit report since the time of the credit report used to determine your rate (not including any inquiries related to a student loan, vehicle loan or mortgage).
* Debt obligations are made up of installment accounts, mortgage / rent, and revolving credit. This calculation is separate from the debt to income calculation.