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New Visitor
MJ14
Posts: 2
Registered: ‎12-03-2012
0

College Kid With No Credit

I'm looking for an auto loan of roughly $7,000 with $3500 down. I have no credit history and my gross income is $1000 a month. The only thing I pay for is $337 rent a month. I've been denied by 2 people already and I'm not sure why? I'm banking like $300 a month easily and I'm only looking to pay around $100 when I talk to these places. Am I just looking in the wrong place or are most people going to deny me? How do I go about getting a loan, even with a high percentage APR. My dad is co-signing with me and he has a mid-range credit score and still no approvals. Possibly a lender I should be looking at? Thanks for any and all help!

Member
Cox0924
Posts: 14
Registered: ‎12-01-2012
0

Re: College Kid With No Credit

What kind of car? Year and miliage? All of this has an effect on getting a loan. Whats your dads credit score at roughly?
Current myFICO Score: 747 as of 12-1-2012
Regular Contributor
Unique620
Posts: 233
Registered: ‎10-03-2009
0

Re: College Kid with no credit

[ Edited ]

Hello-

 

Wow. Where do I start!  First are you over 21?If not, due to 2009 Credit Inform you will need the following:

 

  • You need a co-signer: If the co-signer has poor credit, you still may not qualify. (Co-signer may have mid scores, but are there baddies on report?) Co-signer must also have good income to debt ratio. Remember yes they are the co-signer, but if you fail to pay they are responsible and lender wants to make sure they can afford to pay of debt.

 

  • You need sufficient income: If you don't have a co-signer, you must prove you have income to pay the debt. I personally think your income is low. Not sure how much the car cost you are trying to finance.

 

  • Be an authorized user: Since you have no credit history. Your score can do a 360 by becoming an authorized user on a card that reports on your credit reports. See if dad has a credit card that he had for more than 4 years, with no lates reporting. If he is willing to add you, this will help you establish a credit history and give you an actual credit score.

I personally think that you need to establish your own credit history and have one for at least 6 months to a year if dad can't help you with becoming an authorized user.

 

  • Secured Card: Not sure if you need a co-signer for a secured card, but you may want to go  this route as well.

It's so much missing from your statement so I can only comment on what I see on post. Are your credit reports completely blank? Do you have student loans reporting? What is your current FICO scores?

Filed BK 04/2011|BK Discharged 08/2011|Hard Pull I 12/05/2012 |


Starting Score: EQ 523 03/2012
Current Score: EQ 649 I TU 655 (02/2013) EX 672(01/2013)
Goal Score: 700 on all CR's 04/2013
New Visitor
MJ14
Posts: 2
Registered: ‎12-03-2012
0

Re: College Kid with no credit

[ Edited ]

The vehicle is a 2007 Mustang Premium Coupe 2D. 65,250 miles on it and the guy is selling it to me for $7,200 if I can come up with the money. I'm only 20, but I'll be 21 in January. No student loans as I just straight up pay for my schooling. Not sure what my scores are though. According to the people I've talked to, I have no credit history what so ever, even though I pay monthly rent. I also have an additional $500 income, so my total income before taxes is like $1500 a month. My dads credit score is just over 600.

Frequent Contributor
Mike360
Posts: 435
Registered: ‎03-19-2010
0

Re: College Kid with no credit

[ Edited ]

Also make sure you factor in your insurance rates. Years ago when i was 22 years old i have a 2002 Ford Mustang v6 and paid $230 month for full coverage and that was with a clean record.

 

I know you really want a mustang cause they are cool but i can't recommend it. If your getting denied you need to contact the creditor to find out why or wait for your letter.

~~In my wallet: Best Buy $10000, Dell Preferred $5500, Discover IT $5500, Chase Freedom $3000, Barclays NFL Extra Points $3300, Sears $2800, Bill Me Later $3000, CapOne Platinum $2000, Kohls $1500, Target $200, Amazon.com Rewards Visa $2300
Regular Contributor
Unique620
Posts: 233
Registered: ‎10-03-2009
0

Re: College Kid with no credit

[ Edited ]

MJ14 wrote:

The vehicle is a 2007 Mustang Premium Coupe 2D. 65,250 miles on it and the guy is selling it to me for $7,200 if I can come up with the money. I'm only 20, but I'll be 21 in January. No student loans as I just straight up pay for my schooling. Not sure what my scores are though. According to the people I've talked to, I have no credit history what so ever, even though I pay monthly rent. I also have an additional $500 income, so my total income before taxes is like $1500 a month. My dads credit score is just over 600.


I really strongly would wait until your 21st b-day and start building a credit score. After 6 months you should have some type of score. Then apply for a second card. Most lenders want to see more than one creditor on report and at least a year history. Start with a starter card like Capitol One (visit the pre-qualifyer first on website) or a secured credit card.

 

Please do not allow a ton of creditors to pull your credit. Not sure if the auto loan places you dealt with have done this already. This is NOT good when looking for credit. So pull all three scores and see whats there.

 

If you don't "need" a car and this is a "want", waiting and building your credit will be worth it. I also agree  the insurance is also going to be high because of your age. I know mine was way higher in my 20's. 

 

Think about it. If you wait, you won't be getting denials, but YOU will have the upper hand when you return with a great credit score.

Filed BK 04/2011|BK Discharged 08/2011|Hard Pull I 12/05/2012 |


Starting Score: EQ 523 03/2012
Current Score: EQ 649 I TU 655 (02/2013) EX 672(01/2013)
Goal Score: 700 on all CR's 04/2013

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