Asked by Amy  |  Submitted April 20, 2018

Does the amount of debt I have impact my ability to get a loan? Is there such a thing as not enough debt?

Every time I apply for a loan for this I'm denied. Not sure if its because of credit score or that my debt isn't substantial enough.

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  Answers  |  1

April 20, 2018

There is no such thing as not enough debt, but there is such a thing as not enough credit history. Two different things, if you have zero credit history, many lenders will balk at making the loan. Most loan programs want to see a minimum of three open accounts with at least 12 months of history on them these balances can be zero. There are programs that allow alternative credit for borrowers with no or little credit history.

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