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Regular Contributor
Posts: 121
Registered: ‎06-29-2008
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Re: Denied... FICO's are all over 680 No negatives

cass all the advice and comment you received are good but the fact is to the banks your jumping

in over your head right now. your trying to borrow $33000 but you never borrowed $10000. maybe you need

to get a cheaper car and prove yourself and go from there. remember we're still in this so called recession and

banks are still tight with their money,and you can't blame them with all the foreclosures and repossesions

going on. so again try to find something cheaper and in2yrs you can get the mustang gt! GOOD LUCK!!!!!!

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Registered: ‎05-12-2010
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Re: Denied... FICO's are all over 680 No negatives

My credit union tried to screw me today. At the start, the credit said I would need to file jointly with my father since the loan amount is more than I make a year. I ask them specifically would they use my score since it is the highest of the two. CU said sure. My score filed jointly with his income should have got me the loan. Fast foward to when they denied me. Now the CU says my dad is the cosigner(This was supposed to be joint filed loan) and with him they are only willing to give a measely 5k over the 15k they offered me. Even though my dad brings in close to 100k/yearly and is backing me throughout this loan the CU is only willing to give me a measely 5k. To add insult with injury, due to the fact that I have the higher score of both off both of us,(remember theysaid they will use my score) if I took the extra 5k ( 20k in total), my monthly payment would have over 550 a month for 60 months!!! I f they would've consider using his income and my scores my monthly payments have only been $519 a month for 72 months. They were not going to even tell me this until after I signed for the loan! I wouldn't have took this deal no way. I went into the dealer and told I was denied for the same reason. They said they will approved my father but not me so the only way I could get the car is not be on the loan altogether have him go for it alone. But the dealer claims Ford Motor Credit will deny him because it will look like he was going to get the car for me.(Sounds like BS to me to but this was what I was told). The dealer claims my dad has a way better chance than me of getting approved and a even greater chance of filing with his wife.( who has a higher credit score and around the same income as my dad). I guess I have a decision to make.

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Re: Denied... FICO's are all over 680 No negatives

 


Cass_at_myF1CO wrote:
My credit union tried to screw me today. At the start, the credit said I would need to file jointly with my father since the loan amount is more than I make a year. I ask them specifically would they use my score since it is the highest of the two. CU said sure. My score filed jointly with his income should have got me the loan. Fast foward to when they denied me. Now the CU says my dad is the cosigner(This was supposed to be joint filed loan) and with him they are only willing to give a measely 5k over the 15k they offered me. Even though my dad brings in close to 100k/yearly and is backing me throughout this loan the CU is only willing to give me a measely 5k. To add insult with injury, due to the fact that I have the higher score of both off both of us,(remember theysaid they will use my score) if I took the extra 5k ( 20k in total), my monthly payment would have over 550 a month for 60 months!!! I f they would've consider using his income and my scores my monthly payments have only been $519 a month for 72 months. They were not going to even tell me this until after I signed for the loan! I wouldn't have took this deal no way. I went into the dealer and told I was denied for the same reason. They said they will approved my father but not me so the only way I could get the car is not be on the loan altogether have him go for it alone. But the dealer claims Ford Motor Credit will deny him because it will look like he was going to get the car for me.(Sounds like BS to me to but this was what I was told). The dealer claims my dad has a way better chance than me of getting approved and a even greater chance of filing with his wife.( who has a higher credit score and around the same income as my dad). I guess I have a decision to make.

 

Actually, the dealer may have a valid point.  It is my understanding that if a vehicle is essentially being financed by one person but is being exclusively used by another, then the transaction may not be legal, and dealers/finance companies cannot proceed.  This sort of arrangement is called a "straw deal".  There was a discussion about this concept a while back; I'll see if I can find the thread.

 

This may also be part of the reason by the CU won't issue a joint loan for you and your father, because if your father is not going to actually to be in possession of the car and won't be making the payments or seeing to its maintenance, then maybe he can't be considered a joint owner, and can only act as a guarantor (not sure if that's the right term for an auto loan).

 

But having said that, it would make no sense for the dealer to suggest that your father buy the car on his own (or jointly with his wife), because it would still be illegal for them to finance the car for you.  From what you've written in your last sentence, I can't tell if that's what the dealer was suggesting, or whether he was just making a statement of fact (that in general, your dad could qualify for a loan on his own).

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Registered: ‎06-17-2007
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Re: Denied... FICO's are all over 680 No negatives

[ Edited ]

Cass, maybe you're just asking for too much car for your income. Any chance of getting a used Mustang or a new, less-cool but more-affordable car?

 

You might not need to drive a Fiesta. You might be able to drive a better $12K car new at your income and score levels. If you were able to swing something like that and pay it on time for two years, then maybe you could trade up and into the new Mustang.

 

I love Mustangs, myself. Right now, any new car is a tough sell on my current income! Count yourself lucky.

 

:smileyhappy:


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Registered: ‎04-01-2007
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Re: Denied... FICO's are all over 680 No negatives

 


Cass_at_myF1CO wrote:
My credit union tried to screw me today. At the start, the credit said I would need to file jointly with my father since the loan amount is more than I make a year. I ask them specifically would they use my score since it is the highest of the two. CU said sure. My score filed jointly with his income should have got me the loan....

 

Getting a mortgage for more than I make in a year? Sure.

 

Getting a car?

 

IMO, your credit union is doing you a favor. This isn't a wise plan. :smileysad:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Posts: 52
Registered: ‎05-12-2010
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Re: Denied... FICO's are all over 680 No negatives

My credit union: 15k auto loan for me only and whatever low interest rate I qualify for with a 700 credit score(at least 5% or less) 280ish a month for 60 months 20k auto with me and cosigner and 650ish fico 19% interest (CU WAS not going to use my higher score to receive the lower APR) 520ish a month for 60 months (As you can see the CU DID WOULD NOT have been doing me a favor in this del) 33k auto loan using my score and my fathers income (or him and his wife applying jointly) with a >720 credit with a interest rate of 5% or lower 530ish a month for 72 months or 600ish a month for 60 months. As the above states the CU is not doing me a favor as far as using a co signer was concerned. In returned for helping my father get his credit score up and lowering his insurance rates, he wants to help me buy the car for me anyway for all that I have done for him so far.

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Regular Contributor
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Registered: ‎06-17-2007
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Re: Denied... FICO's are all over 680 No negatives

They really are doing you a favor... as hard as it may be to see that right now.

 

Check this out: Annual gasoline cost for the Mustang is over $2000, per fueleconomy dot gov.

 

Add the insurance on top of that, and you're looking at a very painful monthly expense...

 

Would you consider buying a used Mustang (2-4 years old) in good condition? Or one of the classic models?


Starting Score: 550
Current Score: 673 EQ, 681 TU, 650 EX
Goal Score: 720

Update April 1: TU 615/EQ624
Update June 28: TU 641/EQ 626
Update Sept 21: TU 681, EQ 673, EX 650 (FAKO)
I FINALLY got that car at the rate I wanted! Thanks, FICO Forums!

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Registered: ‎09-13-2010
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Re: Denied... FICO's are all over 680 No negatives

Look, Cass, with all due respect, nobody is screwing you here. You may not want to hear this, but your head is not in the right place about borrowing and the CU and FMC are simply corroborating that.

 

As you are learning, your credit score is not the only basis for borrowing. You can have an 800+ score and low income and nobody will lend to you.

 

Here's a reality check: Bottom line is you simpy can't afford a $33K loan (or anywhere close to that). It's this type of thinking that keeps people in the credit rat race—it's living beyond your means. And that's simply what the lenders are telling you. 

 

Credit is a privilege, not a right, and you have to earn it. You have been sucked into the mass hypnosis like so many young people into thinking that you are entitled to this. I did the same thing 20 years ago when I was 22 and thought I was the s**t because I was making $30K/year. I went out and financed a $16K brand new car with a payment of $350/mo and lost my job 10 months later and it all went downhill from there. By the time I was 25 I had to file BK and for less than $20K total debt including the car. I spun on the bad credit/no credit hamster wheel for the next 15 years and learned not to live beyond my means and not over-extend myself.

 

Trust me, you will feel a lot better about yourself in the long run and end up much more financially stable if you keep your dad out of the picture (it's YOUR life now) and do this yourself by saving for a decent down payment and getting a $20K car for the next few years.

 

Another factor in the equation is have you priced insurance for a Mustang GT? If you are a male under 25 it's going to be a couple hundred a month.

 

I know how bad that new car fever can be but really, it will pass.

Regular Contributor
Posts: 203
Registered: ‎08-23-2009
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Re: Denied... FICO's are all over 680 No negatives

Agree with the prior posts -- bottom line is that you cannot afford this car.  These credit guidelines are in place for a reason -- it protects you from getting in over your head just as much as the lendor.  Those out in the workforce for a while with a much more mature credit file and higher annual income are well suited for the $30,000-$40,000+ cars.  There are many great vehicles out there for much less money that wouldn't include making you a slave to your auto expenses every month.  And you would still have money left over for rent, clothing, food, social life, savings, GAS, etc.!

 

Secondly -- it sounds like your father has been working through his own set of financial issues, as you mentioned you had to help him bring his scores up, etc.  If that is the case, the LAST thing he should be doing is purchasing a car for you in his name and/or co-signing.  The best thing my mother ever did for me when I was younger was to tell me "NO!"....she did not co-sign for me because she knew it was time I learned to fly on my own and face the financial world on my own.  I'm thankful for that life lesson now.

 

I would be leaning towards a used $15,000 BMW Convertible or a $15,000 Jeep Liberty!  But that's just me...  :smileyhappy:

 

Good luck!

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Registered: ‎06-28-2010
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Re: Denied... FICO's are all over 680 No negatives

Agree with other posters.  This is good education for you, Cass.  I wish this kind of information (and medicine) has been available to me years ago.  Tough to swallow, but excellent wisdom.

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