Denied!!!! Help!!!!

[Anonymous]

Hi everyone! I am having a problem, well I think I know the problem but I need some opinions and answers so here's the deal I have been getting denied for auto loans left and right. I have 2 lines of credit, an Auto Loan though a credit union which I have 2 cosigners on with less than 2 years of credit history on it (22 months to be exact). I have proof that I have been making all the payments myself on time. In full. Cash! Never late and never missed a payment. The other line is a capitolone credit card and I am the only card holder and I have 12 months of history and I never missed a payment and was never late. I have over 2 years of work history but I been getting promoted so never stayed in one position for more than 6 months and I switched jobs from expressjet to continental airlines. I am 20 years old and I turn 21 in March 2, 2012. My current salary is 32k a year and I just signed an offer to relocate to Chicago which included a 50% pay raise (which I have proof of) so by may 2012 my salary with be a little over 47k a year. I also have a large amount of credit inquiries but after that my credit score is now a 675 across the board which is "fair" So to break things down I have 1. Less than 2 years of credit history. 2. Limited job history. 3. many recent credit inquiries. 4. A 675 "fair" credit score. 5. Under 21. 6. 2 cosigners on my auto loan. 7. only 2 lines of credit. So my I feel sorta stuck and clueless plus I got denied for a First Premire Bank credit card with a $300 credit limit which made me feel like a joke. My question is do I not have an option and I just have to wait? I must qualify for something right? Anything helps. Thanks!

[Anonymous]

How much money down? that is the key when you are that young. what type of car you are looking at is also important. today is a good day to look at a toyota or honda.chevy is great also..must be a new car with about $3000 down or a cosigher..I am in the car business i know..

[Booner72]

Congratulations on being aware of credit at age 20.

Congratulations that FP turned you down.  They are THE WORST.

Go to your credit union or bank and open up a secured credit card which can help you start building a credit history.  If you can, have family put you on one of their cc's as an "AUTHORIZED USER".  You inherit their history this way so it will really help your AAoA.  Just be sure that the account is TOTALLY CLEAN and has low utilization, you don't want to inherit a maxed out account, that will only hurt your score.  You have to have family call to make sure that cc reports "authorized users" to the bureaus.  Some do, some don't.  Some report fast, like a few days in my case when I did this for my hubby, others take weeks and months, and I also added my brother and it hasn't even showed up and it's been six months.

You can also think about getting a secured installment loan to help your credit.

It takes time, but you are def on the right track with your awareness.

AND STOP APPLYING FOR ANYTHING!!!  Only apply for credit if you NEED it.  AU accounts do not require an inquiry, so that's good.  Your bank may or may not require a credit pull to give you the secured card.

Good Luck!!

[Revelate]

---

@Booner72 wrote:

AND STOP APPLYING FOR ANYTHING!!!  Only apply for credit if you NEED it.  AU accounts do not require an inquiry, so that's good.  Your bank may or may not require a credit pull to give you the secured card.

---

I think pretty much all banks now do a hard inquiry for a secured card or installment loan...  I'd love to know of one that doesn't currently personally as right now I'm looking at just eating another inquiry on a secured CD loan from either USAA or Wells.  Heck some (Cap One for example) do a tri-pull of all things for a secured card, then again they do a tri-pull for everything in Cap One's case.

It may be a secured debt instrument, but there are places (the federal government being one) that have a right to that collateral before the lender does in some ugly circumstances, so it's just a sanity check if nothing else and we're stuck with it.

[Anonymous]

The car I tried for was a 2010 Camaro SS. Sticker price was 28,900 without tax and tittle. Idk what is going on I decied just to take a break and just wait till I'm 21 I kinda feel like giving up Oh well it is what it is but thanks for the tips. Booner I will def try that secured card with my credit union and see how that works. I already stop applying and just gonna give it some time. I kinda want to get rid of my truck before I move to Chicago in May and get something more city friendly and something more sporty. I think I deserve and should be able to get something with all my hard work. I guess I should start with a honda or something smaller...eh idk..

[Anonymous]

Aslo on your CapOne. Try to keep the reporting balance below 10%.

When applying for a secured card try to get as much high credit line as possible that will help you in bossting your score from utilization perspective.

[Mnmailman]

A car loan of 90% of your yearly salary is really steep.  Go for something half that price and you will have a better chance.

[Chris123nTx]

I hate to be the one to say this, but they did you a huge favor turning you down.

A 30k car with astronomical insurance for a young person would crush you, even with your raise (big congrats by the way). Don't take that raise though and feel like you need to spend it all in a day.

Take the real dollar cost that this would run you,,(car; INS, gas) etc and put that money in the bank every month for six months. That way you can tell if you really can handle the payments - oh and factor in chicago - great city but not cheap to live in. At the end of six months you will know more financially and have a down payment toward your TWO year old camaro you want.

Take small steps with cars. They can hurt a persons finances way way more then you think they could.

[Anonymous]

---

@Anonymous wrote:

I think I deserve and should be able to get something with all my hard work. 

---

Think of it this way instead: No one deserves to work so hard and be almost 30k in debt. Esp someone just starting out like yourself. 

What you deserve is to be flush w cash and security and freedom for all your hard work.

Just a thought.

Maybe start w cash and something way less expensive?