09-04-2010 08:01 AM
I was denied at the CU and dealership yesterday for a 30k car loan. reason for denial: limited credit history. They suggest I get cosigner with a 700 or better credit score. debt to income ratio under 20%. Credit utilization under 2% at time of denial. Income around ~30k. Even though i have generally have low credit limits, wouldn't I seem like a much more prime borrower since I have extra income available that can sustain a car note? I feel its unfair that my 4 year credit history overshadows the fact that I have a PERFECT payment history, not one blemish on my credit reports other than a few inquires on TU.
FICO's as of 9/1 are
TU EQ EX
~686 717 (Due to EQ not updating yet to show 2% util ) 737(Lender pulled)
My next next ace in my sleeve was to use an online lender such as Blue Monkey, UP2DRIVE, and myautoloan. But with a denial because limited credit lingering over my head, I feel my chances of being approved slim to none. What infuriates me about all this is the fact that I have been doing the right thing since my first opened account, took the time to learn the importance of having a good credit score/report,(thanks to this site BTW) and how to maintain and keep my score/report in great condition. That alone should make me that much more of a prime borrower since I know what could possibly happen to my borrowing future if I start slipping up now. But I guess I don't get any credit for that.
09-04-2010 11:32 AM
Capital one had been sending me pre-approved letters every since I got my credit card with them. Yesterday I finally decided to go to the dealership they had listed on the letter. I got approved but at an astounding 20.7% rate.
As bad as I wanted that Chevrolet Silverado I said no thanks and got the heck up out of there!
09-04-2010 11:56 AM - edited 09-04-2010 12:03 PM
Cass, while you do show perfect payment history, the dealership might be concerned about the fact that have no evidence of handling a high limit revolving card or installment loan. This is particularly true if the ONLY reason they cited on your denial was limited credit history.
With 4 years of perfect payment history and 2% utilization, I'm curious why your scores aren't higher. I would expect to see scores higher than 740. Have you opened any accounts in the last year? Inquiries in the last year? Too many accounts with balances?
I recently checked my FICOs from TU and EQ. I'm also at a 4 year history and was at TU 741 and EQ 737. I had seven accounts reporting with a balance so I'm sure I lost some points there. I also had credit pulled from a car dealership, which pegged me at an auto-FICO of TU 744 and EX 782. That was enough to qualify me for 0% financing.
How much of a down-payment are you looking to put down? Perhaps that would help ease the car dealership's concerns a bit.
09-04-2010 01:42 PM
MSRP for my car is $38475
After negotiation, my price came down to $34378 with an out the door price of $36500 inc tax, title, etc. with a 10% down payment I was looking at an $33000 balance.
1 cc opened this year with a limit of 1k
5 inqs on TU
1 inqs on EQ
2 inqs on EX
Tu and EQ have not updated yet to show the 2% util yet.
09-05-2010 12:34 AM
09-05-2010 01:47 PM
What kind of car?
09-05-2010 01:55 PM
Cass, any chance you might be able to qualify through a college grad program?
No, I do not qualify.
The dealer told me if I come with a cosigner with auto loan history, I will get approved. My father comes to mind, but he has a few recent lates and collections keeping him from the 700's. Even if I was able to get all of his negatives removed, I don't see myself being able to have them removed within the next couple of weeks.
09-05-2010 05:51 PM
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