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Denied for A Tier Maserati lease

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Anonymous
Not applicable

Denied for A Tier Maserati lease

Hi guys, for some reason they denied my application for $70k Maserati and I'm trying to find out why. 

 

I own two houses:

 

1. One of them is a house bought 3 years ago regular mortgage by wells fargo and I paid off 20% of it already. I don't live in this house since I moved to the West Coast so I was forced to rent an apartment for $1550.00 a month. 

 

2. Second house I bought using my personal line of credit this year in April. I just rented it out so I actually make about $1000.00 a month on this house. 

 

In the past I owned I financed a car that I bought for $23k and I paid it off in 3 years instead of 6. 

I just paid off 75% of my credit card debt a week ago (Discover, Bank Of America, Wells Fargo).

 

I have a few hard inquires on my account since I was trying to consolidate my cc debt this year however I got a fat bonus check from work that allowed me to pay it off a week ago. 

 

I have one negative account on my credit history which is a medical bill for $75.00 from 4 years ago and I paid it as soon as I found out about that. 

 

I have one student loan that I coosigned to my ex wife. She is responsible for that. 

 

My gross income per month is around: $10500.00 

$8500.00 comes from day work and the rest from my business on the side or tenants. 

 

My current fico credit score is 650 and I think it still reflects my credit card debt from weeks ago. However when I was very low on debt my credit score was never higher than 710. Anyway I don't understand why they don't want me as a client. The loan person responded with this message: http://screencast.com/t/dtfrlBLKgdB

What does A Tier stand for?

 

 

 

 

Message 1 of 34
33 REPLIES 33
pipeguy
Senior Contributor

Re: Denied for A Tier Maserati lease

timothylee - is that you coming back as another "new visitor"?

 

                 

Message 2 of 34
enharu
Super Contributor

Re: Denied for A Tier Maserati lease


@Anonymous wrote:

Hi guys, for some reason they denied my application for $70k Maserati and I'm trying to find out why. 

 

I own two houses:

 

1. One of them is a house bought 3 years ago regular mortgage by wells fargo and I paid off 20% of it already. I don't live in this house since I moved to the West Coast so I was forced to rent an apartment for $1550.00 a month. 

 

2. Second house I bought using my personal line of credit this year in April. I just rented it out so I actually make about $1000.00 a month on this house. 

 

In the past I owned I financed a car that I bought for $23k and I paid it off in 3 years instead of 6. 

I just paid off 75% of my credit card debt a week ago (Discover, Bank Of America, Wells Fargo).

 

I have a few hard inquires on my account since I was trying to consolidate my cc debt this year however I got a fat bonus check from work that allowed me to pay it off a week ago. 

 

I have one negative account on my credit history which is a medical bill for $75.00 from 4 years ago and I paid it as soon as I found out about that. 

 

I have one student loan that I coosigned to my ex wife. She is responsible for that. 

 

My gross income per month is around: $10500.00 

$8500.00 comes from day work and the rest from my business on the side or tenants. 

 

My current fico credit score is 650 and I think it still reflects my credit card debt from weeks ago. However when I was very low on debt my credit score was never higher than 710. Anyway I don't understand why they don't want me as a client. The loan person responded with this message: http://screencast.com/t/dtfrlBLKgdB

What does A Tier stand for?

 

 

 

 


Maserati leases are underwritten by Ally.

They're stricter because they are a bank as opposed to being the manufacturer themselves.

Tier A (or tier 1) for car leases is anything above 700 or 720 credit score, depending on bank or manufacturer.

For Maserati, I think it is 700? Can't really remember

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 3 of 34
Anonymous
Not applicable

Re: Denied for A Tier Maserati lease


enharu wrote: 

Maserati leases are underwritten by Ally.

They're stricter because they are a bank as opposed to being the manufacturer themselves.

Tier A (or tier 1) for car leases is anything above 700 or 720 credit score, depending on bank or manufacturer.

For Maserati, I think it is 700? Can't really remember

 


Thank you very much for your response. What would be the best way to improve my credit score in the shortest time possible? As I said I just paid off my credit debt in 75% a few days ago. Does the huge line of credit that I used to buy the second house for affect my score a lot?

Also, can you guys recommend any company that would help with getting rid of the negative account? 

Why some people have 800 score credit when my highest was around 700 even when I had everything paid off? 

 

 

Message 4 of 34
sccredit
Valued Contributor

Re: Denied for A Tier Maserati lease

2 things - the credit cards need to report lower.  The second is that you bought a house on revolving credit lines, which reflect poorly on your report.  If you had a normal mortgage on that property it would look much better on your CR and I would be substantially increase your credit score.  

Message 5 of 34
Anonymous
Not applicable

Re: Denied for A Tier Maserati lease


@sccredit wrote:

2 things - the credit cards need to report lower.  The second is that you bought a house on revolving credit lines, which reflect poorly on your report.  If you had a normal mortgage on that property it would look much better on your CR and I would be substantially increase your credit score.  


Thank you for your response. Is it work to refinance? The credit line is only $55k and it it very hard go find a bank that can offer regular mortgage for this amount. Also I already have like 5 hard inquires on my account so refinancing it will make it even worse...

Message 6 of 34
sccredit
Valued Contributor

Re: Denied for A Tier Maserati lease

You'll have to provide all documents (tax returns, pay stubs, etc) to qualify but in the long run it will likely be cheaper (interest wise as normally PLOC's will carry a higher interest rate than a secured mortgage) and will give you breating room with your utilization.

Message 7 of 34
09Lexie
Moderator Emerita

Re: Denied for A Tier Maserati lease


@enharu wrote:

@Anonymous wrote:

Hi guys, for some reason they denied my application for $70k Maserati and I'm trying to find out why. 

 

I own two houses:

 

1. One of them is a house bought 3 years ago regular mortgage by wells fargo and I paid off 20% of it already. I don't live in this house since I moved to the West Coast so I was forced to rent an apartment for $1550.00 a month. 

 

2. Second house I bought using my personal line of credit this year in April. I just rented it out so I actually make about $1000.00 a month on this house. 

 

In the past I owned I financed a car that I bought for $23k and I paid it off in 3 years instead of 6. 

I just paid off 75% of my credit card debt a week ago (Discover, Bank Of America, Wells Fargo).

 

I have a few hard inquires on my account since I was trying to consolidate my cc debt this year however I got a fat bonus check from work that allowed me to pay it off a week ago. 

 

I have one negative account on my credit history which is a medical bill for $75.00 from 4 years ago and I paid it as soon as I found out about that. 

 

I have one student loan that I coosigned to my ex wife. She is responsible for that. 

 

My gross income per month is around: $10500.00 

$8500.00 comes from day work and the rest from my business on the side or tenants. 

 

My current fico credit score is 650 and I think it still reflects my credit card debt from weeks ago. However when I was very low on debt my credit score was never higher than 710. Anyway I don't understand why they don't want me as a client. The loan person responded with this message: http://screencast.com/t/dtfrlBLKgdB

What does A Tier stand for?

 

 

 

 


Maserati leases are underwritten by Ally.

They're stricter because they are a bank as opposed to being the manufacturer themselves.

Tier A (or tier 1) for car leases is anything above 700 or 720 credit score, depending on bank or manufacturer.

For Maserati, I think it is 700? Can't really remember

 


Also keep in mind your past experience with an auto loan is less than $25k.  They might be willing to lend double but 3x on a thin file; doubtful. 

Message 8 of 34
Lyythine
Established Contributor

Re: Denied for A Tier Maserati lease

 

To answer your question about raising your score quickly.  If you just paid off your cards, chances are they have not reported the most recent balance to the CRA's.  You will probably need to wait a for weeks for that to update. Once the balances report lower, your util % will come down and thus, your score will increase.  The small collection is probably affecting your score as well since there is no other negative information on your credit report.  You may want to send GW letters to get that removed. As a previous poster stated, you should also get that second "mortgage" off your LOC and into a proper mortgage.  It will greatly help your utilization % and thus your score, however, its not going to be a quick process. There are many banks that will offer a mortgage for a 55k home, but it will probably be at a term shorter than 30 years.

 

 

Since no one else has mentioned this yet, I will.  Looking at your finances, Im not entirely convinced a lease on a 70k car is the right move here... Youre looking at a lease payment of approx $1000/month +/- $100. You mentioned you have a mortgage, a LOC payment as well as paying rent on a third property. Of course youre free to do as you see fit, however, I figured it might be worth it for me to mention that you may be getting in over your head with large monthly payments.  In comparison, I make in the general vacinity as you with regards to gross income at approx 11,900/month and I would never consider a lease on a 70k car and I have no debt.  Again, its all about personal preference, I just wouldnt want to see you stuck down the road if your income situation were to change. Thats my 2 cents.

 

Message 9 of 34
enharu
Super Contributor

Re: Denied for A Tier Maserati lease


@Anonymous wrote:

enharu wrote: 

Maserati leases are underwritten by Ally.

They're stricter because they are a bank as opposed to being the manufacturer themselves.

Tier A (or tier 1) for car leases is anything above 700 or 720 credit score, depending on bank or manufacturer.

For Maserati, I think it is 700? Can't really remember

 


Thank you very much for your response. What would be the best way to improve my credit score in the shortest time possible? As I said I just paid off my credit debt in 75% a few days ago. Does the huge line of credit that I used to buy the second house for affect my score a lot?

Also, can you guys recommend any company that would help with getting rid of the negative account? 

Why some people have 800 score credit when my highest was around 700 even when I had everything paid off? 

 

 


Pay down as much as you can for your credit card and LOCs. You should see a sizable jump in your scores.

 

Like Lexie said, getting a large lease on a short file may also be a problem. Ally is known to be stricter. They can also be a PITA if you are trying to get out of your lease early by transfering so that's something you have to consider too, since its a 4 year lease if you want the best rates. 3 year leases are about 20 bucks more each month as compared to 4 year leases though.

 

If you are hell bent on getting a Maserati, then pay down your cards and see how much higher your score goes. After that, it's up to the finance and sales manager to try work out a feasible price for you. 

 

If you go back to wherever you got your 1st auto loan, you should have a much easier time getting tier 1 financing however. Most manufacturers' financing arms are more lenient on loyalty deals.

 

 

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 10 of 34
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