Common ECOA denial reason
“Value or type of collateral not sufficient” — Decoded.
That line on your denial letter isn’t an insult — it’s a standard reason code, and it’s telling you exactly which lever moved against you. Here’s what it actually says about your file, in plain English.
The short answer
“Value or type of collateral not sufficient” means: The property or vehicle didn’t appraise high enough (or is a type the lender won’t finance) for the loan you requested. It does not mean: Anything about your credit file — this is about the asset, not you. The 800 Club’s team turns this reason into a plan on a free strategy call.
Lever: Letter-Specific
Quick Fix — often moves within a statement cycle or two