Being denied a student/auto loan

Can one be denied a loan due to their immigration status? I'm from the UK, a college graduate, my husband and I bring home good money, and I have a great credit score.

However, whenever it comes to loans (refinancing student and auto), I always get denied as I'm still on a 2-year green card.

Is this truly legal?

CharlotteWittren said:

Is this truly legal?

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Yes. Immigration status is not a protected class.

It should change when you become a permanent resident.

CharlotteWittren said:

Can one be denied a loan due to their immigration status?

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A person can be denied credit without reason or further explanation.

CharlotteWittren said:

However, whenever it comes to loans (refinancing student and auto), I always get denied as I'm still on a 2-year green card.

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Think about your status for a minute.

If you possess a Green Card, you could be removed without reason or explanation in under two years.

Why would a lender take a chance on loaning you money when you could leave the USA and return to the nation where you are a subject?

You could even get removed by USCIS (Homeland Security) to the band where you are a subject.

Should either of those events occur, the lender would have little legal recourse to collect the debt you owe.

CharlotteWittren said:

Is this truly legal?

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The lender's actions appear NOT to be illegal, just prudent.

adjusterjack said:

Yes. Immigration status is not a protected class.

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Just to be clear, it is not a protected status when dealing with a company as a customer. It is a protected status (with some exceptions) when you are an employee or an applicant for employment.

army judge said:

Why would a lender take a chance on loaning you money when you could leave the USA and return to the nation where you are a subject?

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Just to expand on army judge's comments, even without the risk of removal by the government, the lender will be wary when you are not a citizen/resident of the U.S. that you might simply move back home and not pay. It is harder and more difficult to enforce a debt in another country and many lenders probably don't want to deal with that risk.

That said, if you keep looking you might find a lender willing to do it. Perhaps a lender that operates in both the US and UK, for example.