Placed an order on a Lucid Air Pure, payment coming to ~550, $50 less than the lease I just terminated with Tesla.
Applied for a Lucid lease and got denied even though income is 100k+ and my credit history has a car loan which is paid off, and a lease that is paid off as well as a co-borrower who has a very lengthy credit history (family member).
Any idea on why this is happening?
The debt I have is just small payments on credit cards (not overdue) maybe $500 in total and $4k in student loans, similar situation w/co-borrower except for student loans, he has none.
Only one that can tell you why is the leasing company. They should be sending you a formal letter saying why they declined. Not saying it’s you, but it can be any number of reasons. Too many credit lines open, recent derogatory reports (late pmts, charge offs, bankruptcies), too many new accounts, too many inquiries, KYC issues, too many to list.
and you don’t mention what your credit score or history length is.
The Equal Credit Opportunity Act requires lenders to provide you with an explanation of your credit rejection. The CFPB has more information for you here.
If you believe you were wronged, you can provide evidence and submit a formal CFPB complaint. Assuming your claim has any merit at all… and assuming Lucid is using a lender that isn’t just some shady crook… you will get a response fairly quickly. Just about every reputable lender in the USA has to take CFPB complaints extremely seriously.
You can thank specific congress members for strengthening the CFPB in such a consumer-friendly way.
History is clean on both credits, all credit bureaus show a high credit score for both of us however the email I got sent from Lucid showed a 708 and 713 credit score. I was told it wasn’t because of the credit scores though. For the history like I said, multiple leases and loans on my father’s end that have all been paid off on time and closed, and for me as well.
Ty for info, they use BofA for leasing, however, I have only until Saturday to figure it out or I lose out on my deposit. Don’t think this will resolve it by then sadly.
Could be a suspicious address reporting, either correctly or incorrectly (I was once denied a credit card because for a short time I had a mailbox at a UPS store, and that address was deemed suspicious [lots of scammers get mail at places like this]).
Also remember, generally they’re qualifying you for more than just the payment. Leases can be harder to qualify for than a purchase with a similar payment, because on a lease you’re also being trusted to return the asset at the end.
Why are your scores so low? [you don’t have to post the answer, just ponder… but know that these aren’t ultraprime scores on any model]
I would call the lessor directly and politely offer to address any concerns.
Not sure why the scores showed that low… checking via Equifax, TransUnion and Experian they all show 730+ on their sites, not sure where Lucid got these numbers.
One thing that did happen is I switched around my father’s DL info and mine when setting info for borrower and co-borrower, could that have caused it? I put his DL # in mine and mine in his. Regarding credit cards, neither me nor my father have ever been denied a card or even a loan/lease in the past… this is the first time which is why I was super shocked, especially for such a low amount.
There are dozens of score models designed to measure risk differently for different types of transactions.
Those are almost certainly not the same models as were used to decision this.
If you applied for a mortgage at the identical moment as the Lucid lease, your scores would be different even on the same bureau data.
The question was more general about why your scores aren’t super-prime.
Few people have perfect scores on any model, so nearly everyone has something dragging them down from the top end of the scale.
Low 7s isn’t a bad score, but there is a reason (or reasons) you aren’t at 850 or 900 (top of whichever model they use). That’s what you need to look at. Any late payments at all, on anything, ever? (again, you don’t owe us the answer, just ponder)
Never a late payment on any of the accounts. After being declined I checked for any late payments or any other marks but I failed to find any. I am now a U.S. citizen, however, we did move to the U.S. in 2013 with the first credit card being opened in 2014 under my father.
I did apply for a mortgage with my father early on this year however we never did end up finding a house that worked for us.
One question I do have, my Tesla lease was just terminated less than 24 hrs ago, would it still be on my credit report/used against DTI ratio?
I’m just tossing out some of the likelier scenarios. If I had your reports (please don’t post them ) I could tell you why your scores aren’t higher.
I can’t speak to Lucid’s/BofA’s underwriting requirements or how the decision algorithm was programmed to digest credit data, but if the Tesla lease was taken to term the payment likely wasn’t considered, as with an uninterrupted string of on-time payments it’s very easy to determine the end of your liability on that trade line.
Here’s my Audi lease as an example. They wouldn’t have to guess when my last payment would be due.
By the way a huge thank you for taking the time to explain these details to me, I am very new to this scene and I am just figuring out more about credit etc. while I understood certain aspects, I am being educated on many new things.
I would try to understand why your credit score falls within 700-730 range. Though you say that your credit score is higher in other platforms, I think they are in the same ballpark. If your credit utilization is high, try to pay off some of it and you can bump up your score quickly. Your credit score might be an issue in future applications too.
700-730 for credit history since 2014 with no negative remarks is low. You need to investigate why your score is that low. I have a long credit history and churned credit cards. Even then, the only way for my credit score to fall drastically is when I use that balance transfer offer (use 90% of the credit limit on that one card), even then my score will still hover around 720-740 and will shoot up when I paid that balance transfer off.
My application was something similar. I was initially quoted $10 lower but when BoA ran my credit, it came lower than expected and so I ended up paying $10/month more which increased my payment to $360/month.
) I could tell you why your scores aren’t higher.