01-08-2013 01:11 AM
Here is the deal, I am currently 23 yrs old and I recently graduated from school in May of 2012. I been emplyed since june with a 70K anual salary.
Around july i tried to get a used car, my 1998 clunker is on his last leg, it was a 26K vehicle; however I couldnt get approved since my credit history is limited, besides student loans opened in 2008, my oldest credit card is from early 2009. Soon after I checked my score and it was around a 530 aparently i had a collections due to a medical bill and a 90% ratio on my cards.
After some months of fixing my credit, i got rid of the collection and brough down my revolving debt, increasing my score to a current 670. Around thanksgiving I tried to get a lease thru mercedes, 1000K down 400 a month. I filled the application but I got rejected.
Since then I haven't appied for another loan or lease, I am waiting on my tax refund for a down payment, I can probably put down 5K.
What do you guys think, do you think banks like wells fargo or credit unions would be more flexible for a 25-27k loan, or has anyone tried the college graduate program than some car companies offer for a lease or finance?
Or should I get my score to the 700 before applying anywhere else. Thanks
01-08-2013 05:07 AM
01-08-2013 05:09 AM
01-08-2013 10:03 AM
Good points from the other poster here but you may want to ask a loacl credit union. I use a coupel in Texas and they are veru easy to deal with and only look at my credit score for an approval. They care nothing about past car loans... In fact until recently I never had a car loan and was approved for 1.99% up to 50k.
of course your results may vary, and i have been a member with my CU for years, but a friend of mine who was not a member wanted to get the 1.99% and all they made him do was open a checking account with $5.00 to join and he was approved. The credit score requirement for the 1.99 was a promo at the time and they wanyted a 680 score, normally it is 700 maybe 720. They also give reasonable rates to lower credit scores. I would call a credit union and ask what the requirements are. If you feel you meet them go and apply.
01-13-2013 02:36 AM
just wanted to leave my two cents from personal experience.
I also tried to lease a Mercedes c250 in July. I was not approved with a down payment 4000 and an auto enhanced credit score of 786 and no previous baddies or anything. Mainly it was my income, around 35000 that hurt me and my young age, I was 19.
i ultimately got approved for a lease through audi financial for a 2013 a4 with a down payment of 2500 haha!
So just don't give up. Always keep your head up high and have backup plans
the guys at Mercedes told me that mercedes financial services is weary of people with a short credit history....especially on a lease. you should also expect to put down a lot more if your score isn't at least 700 and you don't have previous auto loan history.
I don't have any experience with financing an auto loan, but I'm sure things will work out for you. Good luck!
Sorry if this was all useless to you
01-13-2013 08:48 AM