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Auto Loan Denials

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shadylady51
New Member

Auto Loan Denials

Hello everyone,

 

I have been applying for a bunch of auto loans and I keep getting denied. Well, I got one approval, with a an APR of 25%!!!

 

Anyway, I just received my letter from PenFed. My equifax score is 728. They denied me because I have no installment payment history. That's because I have never taken out a loan and because I just moved to the US in 2011.

 

I think that's also the reason why I was denied at CapOne and PNC.

 

How am I supposed to get a payment history if nobody will give me a chance? And I refuse to take the 25% APR.

 

Please help, I need tips or suggestions where I can get an auto loan with a decent rate. TIA!

Message 1 of 4
3 REPLIES 3
HoldingOntoHope
Valued Contributor

Re: Auto Loan Denials

Have you gotten any letters that give the reason for denial? It would be unusual if the only reason was lack of installment history. What you may want to do is go directly to the dealership and apply with them. If you have a provable income and a down payment they will certainly find a loan at better than 25% with your credit score. I would recommend a 10% - 20% down payment and a vehicle cost of no more than 50% of your annual income to start out and you should have no problem.

 

If there are other reasons listed for the denial you would need to let us know what they are and the members may be able to suggest workarounds for you.

 

Edit to add: Just saw your other post and the 2 months employment history is probably going to be a bigger barrier than the lack of installment loans. Lenders generally like to see at least 6 months of employment before they are willing to talk. You may be best off to lower what you are looking for to a reasonable used vehicle in the under 10K range.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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Message 2 of 4
shadylady51
New Member

Re: Auto Loan Denials

Hi,

 

Yes, I got the letter from PenFed and according to the letter, they were unable to approve me for the lona because of the following reason:

 

Insufficient Installment Payment History

 

That's it. However, when I called, the lady also mentioned that my employment history is a factor. I explained to the her that I just moved jobs and that I have been working since 2006. She advised me to send an email for reconsideration. Let's see how this goes.

 

And yes, I'm actually just looking to spend 15k max on a car.

Message 3 of 4
sccredit
Valued Contributor

Re: Auto Loan Denials

How long is your credit history? 

Message 4 of 4
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