Have you refused a loan for “poor” credit? It might not be your fault – NBC Los Angeles


A man was denied a loan after a little-known credit agency said he had “bad” credit, although other agencies said his credit was in fact “excellent”.

Bobby Torrence’s problem is not unique and can happen to you, with the credit reporting agency Sage Stream using a different credit scoring model than the “big three” bureaus of Equifax, Experian, and TransUnion.

Torrence is someone who takes his finances seriously, pays his bills on time, and works hard to reduce his debt. “I wanted to eliminate debt, so every time I get credit cards I pay them off in three to four months,” he said.

For Torrence, this resulted in a credit score of over 800, which credit experts rate as “excellent.” So Torrence thought financing a new car would be easy, but instead the bank turned down his loan and said it was because of Sage Stream’s credit report.

Sage Stream said Torrence’s credit score was 631, considered “poor” by credit experts. Torrence said he called Sage Stream for an explanation, but they told him he had to prove his score was better.

“They told me to send them information about my bank accounts, my credit history and any other loans I might have had,” he said.

This didn’t suit Torrence, so he reached out to the NBC4 I-Team for help. When NBC4 reached out to Sage Stream, a public relations firm sent out a general statement that did not answer any questions. The CEO of Sage Stream also did not answer repeated phone calls.

“Frankly, a company that is unwilling to talk to consumers about their own credit scores makes an already opaque and confusing system all the more worrying,” said credit expert John Ulzheimer.

Ulzimer said Sage Stream uses a different credit scoring model than the Big Three bureaus.

On the Sage Stream website, it says credit scores range from one to 999, but that doesn’t explain what is considered good or bad. He also says consumers can open a case, which Ulzheimer said people should.

“You have to actually raise your hand and say, ‘Look, I want to take advantage of my rights under federal law, I challenge the validity of this information, I want you to investigate to make sure this information is correct. “” Said Ulzheimer.

Torrence turned his business over to a credit union and said he was able to “get a better deal” from the cooperative.

So here’s what you need to know if you’re denied credit because of something on your credit report:

Get a copy of the report and browse it. If you see something wrong, you have federal protections on your side.

File a claim with the credit bureau, providing specific details about what you think is wrong.

The agency must then investigate your complaint within 30 days.

The agency is required to communicate the results of the investigation to you in writing.

If the investigation results in changes to your credit report, the agency owes you a free report.

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