Reconsideration Policy

If your loan is not approved, you will receive a letter in the mail, known as an “adverse action” letter. This letter explains why your loan application was unable to be approved. Once you have received this letter, you may ask us to reconsider your loan application. You must submit your reconsideration request to us in writing and include the reasons why you believe we should reconsider your application. We will notify you of our decision in writing approximately one week after receiving your request.

Procedures for Submitting a Reconsideration Request

If you would like to submit a request for reconsideration, please follow the following instructions:

  1. Carefully read the "adverse action letter" which lists the reasons why your loan was not able to be approved.
  2. Order a copy of your credit report by calling the credit bureau listed in your adverse action letter.
  3. Check your credit report for accuracy and report any errors by calling the credit bureau directly. In some cases, credit reports show errors that you may not be aware of.
  4. Write a letter to TERI requesting reconsideration of your loan. Please provide detailed information and documentation explaining how you have addressed (or are disputing) the items listed in your adverse action letter. Click here for help in preparing your letter.
  5. Include your loan identification number and social security number in your letter.
  6. Mail your reconsideration request letter to TERI, Attn: Reconsiderations, P.O. Box 848108, Boston, MA 02284-8108.
  7. If you have questions about our reconsideration policy, our Customer Service Representatives are available to help at (800) 255-TERI.

 

Help with your Reconsideration Letter

To assist you in creating your letter, the following are some common reasons for loan denials and actions you can take to address them:

Collection Accounts, Items of Public Record, Liens, and Judgments – These are categories of debt that may appear on your credit report. You must resolve any outstanding items that are unpaid and have them removed from your credit report. In your letter to us, explain the accounts that have been paid.

Serious Delinquencies (late payments) – Creditors report late payments to the credit bureaus. If you have made payments late, consider how severe they are (30, 60, 90+ days), how recent they are, and how frequently they appear. Start by bringing any late payments current. In your letter to us, explain when and why these accounts became delinquent.

Excessive Revolving Balances – Review how many open credit lines you have, what types of credit lines are in use, and what the outstanding balance is relative to the credit limit for each open line. Pay off and close any unnecessary lines of credit. In your letter to us, describe the reason(s) that has resulted in excessive balances on your credit cards, home equity, and other revolving lines of credit. If you are a full-time student, explain how you plan to meet the monthly payment obligations on these outstanding lines of credit.

New Account Openings – Check the number of new accounts you have opened recently. Explain in your letter to us why these new accounts were opened.

Number of Recent Inquiries – Review and explain the number of creditor inquiries that have recently been made on your credit report. Credit inquiries may occur, for example, when you apply for a new credit card or an increase in your credit limits.

Co-signer Not Qualified – If your application was denied because of your co-signer’s credit history, s/he should contact TERI directly since we are not permitted to discuss his or her credit situation with you. Your co-signer can follow the steps described above to have the application reconsidered, or you can apply with another qualified co-signer.

Adding a Qualified Co-signer

In many cases, adding a qualified co-signer to your reconsideration request may increase your chances for a successful reconsideration. In all reconsideration cases, if you choose to add, change, or delete a co-signer, you must resubmit a new, completed application along with your reconsideration request letter.

Our Customer Service Representatives are available to assist you with any questions you may have. You can reach us at (800) 255-TERI, press 2 for Customer Service.