[Gotto]

Hello, I am looking for some feedback with regard to determining the ECOA denial reason for the following scenario. An applicant’s credit report shows the applicant’s revolving accounts have excessive credit use – meaning they owe more than the allowable credit threshold of 75%. It appears the denial reason is Credit. However, it does not fit one of the predetermined options. It has been suggested to use “Other” as the reason with description of excessive use of credit. I appreciate your perspective.
Thank you.

[Brent V]

I need some additional information in order to accurately respond to your question. Was the “excessive credit use – meaning they owe more than the allowable threshold of 75%” one of the four key factors that affected the credit score? If so, it must be listed. ..in Part II of the form.

Additionally, if it is the sole reason for denial it must be listed in Part I (ECOA). None of the options on the model form match “excessive credit use”, so I believe you’d select “other” and write it in the blank.

If the excessive use of credit – 75% allow threshold is not information you received as a key factor from the CRA, as we have assumed, please let us know what the threshold is.

[Author]

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