05-09-2013 10:17 AM
Currently my Fico scores are at 702, 680 and 695
Up until yesterday I had ZERO inquiries and no negative items or collections.
The problem is I have only 4 months of credit which is a secure $200 credit card. There is nothing else on my reports either way.
I tried getting a loan through dealership, Citi, a couple credit unions, roadloans and now Carmax.
No one will lend any amount to me.
I make 72000 a year verifiable and had $1K to put down.
Any ideas? My car is about to die. I want to buy a house in a year and really want to have a car loan on my credit
Feeling pretty crappy about myself right now.
05-09-2013 11:42 AM - edited 05-09-2013 11:43 AM
Did you get your scores from the dealership or somewhere else? How did you manage to get a secured card 4 months ago and not have an inquiry?
Did you mean you didn't have auto inquiries or that you had no inquiries whatsoever? What else is on your report that keeps you from getting credit cards?
Couple of questions: Is this your first car loan? Sounds like it. Did you just graduate from school and now you are working? Or have you been working for quite a while and you just never established your credit?
How much of a car were you trying to buy (price and type of vehicle)?
The $1000 is basically a very small amount to put down on a vehicle when you haven't had any vehicle loan before and you only have had a $200 cr line for the past 4 months. You are a very, very high risk because you don't have anything to show you have the capacity or desire to repay anytype of long term installment loan.
If you want to purchase a car and you don't have a long credit history, you need to come in with a lot more money so that the lender is reassured that you will repay the loan. For example, in your situation, I would think that a minimum of 25% or more on a low dollar type loan would get you started. You can always get a nicer vehicle after you establish your credit profile. 4 months is too short a time period to show capacity to repay.
05-09-2013 12:09 PM
My credit union didnt pull my credit to get a secured credit card. I just gave them the $200 and they gave me the card..
I have ZERo hard inquiries, a bunch of soft pulls.
I have nothing else on my reports except only 4 months of history. I havent tried to get a regular credit card and was holding off until I got an auto loan first, then credit card, then house.
I have been working for a long time but have always paid cash for everything including my autos. I am tired of not owning a house so this is the first time I have ever cared about having credit.
I was trying to get prequalified for any amount or the car I tried for was $22K out the door.
I was raised told to pay cash for everything and not owe anyone anything. My parents just skipped the part about needing credit to buy a house or emergencies and even convenience.
05-09-2013 01:27 PM
Well with only four months of credit history on one account you actually would not even have any FICO score yet. Did CarMax offer you any options as far as a larger down payment, etc. If not then go back to the CU where you got the credit card and ask them what they would be willing to work out for you. If they can not do a car loan right now even with a significant down payment then they should most likely be able to a share secured installment loan.
This would be a loan where a certain amount of your funds are frozen or held in a CD and as you make payments the funds are released. You don't need to do a large amount or even a long term to fit the installment loan mix of credit that FICO likes. But you are still not going to get a FICO score until at least one active account is 6 months old.
05-09-2013 01:52 PM
I do have a fico score through EQ. Its 680 and I got that through myfico.com. Sorry... there is a utility company account and we are not sure why it is on my credit report but it is and every month they report is as positive. I think that qualified me for the Fico.
I do like the idea of securing it with cash through the credit union and will see what they say.
Thanks for the info.
05-09-2013 03:21 PM
It sounds like your parents did you a favor by teaching you good values.
Its a shame that our credit system is a little bit upside down/backward by requiring people to go out to obtain credit, not really use it much but obtain it to show that you can handle it. It wasn't always this way.
For peace of mind you should know that buying and mortgaging a house is easier than getting a car loan usually. Some lenders want to see 3 tradelines to purchase a home, but I don't think that is written in stone IME. You don't have to use the tradelines, just have them. You might want to consider increasing the CL on the secured card though.
05-10-2013 04:49 PM
I'd look for better places other than Car Max for a car...I went to Car Max years ago and they told me the only way they'd finance me was if I put $3200 down at 25% with a bank I'd never even heard of....
Thanks CarMax for showing me the light!
05-11-2013 11:48 AM
Find a family member to get added on as a authorized user on a credit card with little to no balance .... add yourself several years. :-)
Go to CAP1 auto finance and try to get pre approved after it report.
05-11-2013 04:02 PM - edited 05-11-2013 04:07 PM
I also was having car problems and went to carmax April 28 2013, and came home with a 2011 Toyota 4Runner, I traded in my beatup 2006 rav4 with 154k that was on its last leg plus $133 cash. I was approved with bad really bad credit, my current credit scores are 523, 555 and 563. Loan company used the 555, The Interest rate is high, but I plan on working on my credit and refinancing next yr. I was approved with 11 accounts in collection due to health issues and I did not have to bring in proof of income, only insurance for the 4runner, License, I had positive equity of $1867.17 and the $133. that made a total of $2000 down. I am current on the mortgage, both vehicles and 2 Crap1 credit cards, guess that helped some. Good luck.
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