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First time buyer with decent score, Application denied.

New Visitor

First time buyer with decent score, Application denied.

Currently I'm 26, First time financing a vehicle and I felt that now was a good time to start shopping around for a loan. Since BofA is my primary banking institution i went and put in a auto loan request on their site, and was denied due to "insufficient credit history". This threw me off a bit and i havent put in any applications anywhere else since i dont think having a bunch of hard pulls on my credit would be a good idea.

 

Is there any course of action i could take to actually get an auto loan, without having to wait another year for my accounts to mature? I have 0 missed/late payments, 0 derogatory marks and my utilization is below 10%, Although my credit limit is a mere $1,000.

 

Credit Score:714

Fico 8: 688

AAoA:1 year

# of positive trade lines: 3

# of negative trade lines: 0

Income: $32,500

Length of Employment: 1 year at current job, 5 years in this field.

Previous Loan Experience: None

Debt-to-Income (DTI): 0? I have no debt

Year of Car: 2016

Miles: 35,000

Purchase/Refinance: $9,000

Requested loan term (XX Months): 60

Down payment amount: $1,000

Co-borrower/Co-Signer: None

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 REPLIES
Valued Contributor

Re: First time buyer with decent score, Application denied.

How old are your accounts that you have?

Gardening until September 2018
Next app: Mortgage in September 2018
Valued Contributor

Re: First time buyer with decent score, Application denied.

I would use the Capital One Auto Navigator, its a SP to get prequalified.  I am sure you will get a qualification from them.  I would also join a good credit union and apply with them.  Do both before you go shopping.  Credit unions are much more customer friendly than private banks, BofA isn't a big player in auto financing so I am not too surprised they are not interested in being your first auto lender, banks like these want well established customers with long histories so they pose no risk.  Capital One is good to customers looking for their first loans but most Credit Unions will beat their rate. Don't be surprised if you end up paying a little more in interest because of the lack of a established auto loan but if you do well with this one and your other credit in a couple of years getting a car loan will be crazy easy.

 

Let us know how this works out.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
New Member

Re: First time buyer with decent score, Application denied.


Madiqhertz wrote:

Currently I'm 26, First time financing a vehicle and I felt that now was a good time to start shopping around for a loan. Since BofA is my primary banking institution i went and put in a auto loan request on their site, and was denied due to "insufficient credit history". This threw me off a bit and i havent put in any applications anywhere else since i dont think having a bunch of hard pulls on my credit would be a good idea.

 

Is there any course of action i could take to actually get an auto loan, without having to wait another year for my accounts to mature? I have 0 missed/late payments, 0 derogatory marks and my utilization is below 10%, Although my credit limit is a mere $1,000.

 

Credit Score:714

Fico 8: 688

AAoA:1 year

# of positive trade lines: 3

# of negative trade lines: 0

Income: $32,500

Length of Employment: 1 year at current job, 5 years in this field.

Previous Loan Experience: None

Debt-to-Income (DTI): 0? I have no debt

Year of Car: 2016

Miles: 35,000

Purchase/Refinance: $9,000

Requested loan term (XX Months): 60

Down payment amount: $1,000

Co-borrower/Co-Signer: None

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


I think you whether you are buying or leasing a car for the first timer, you should read this post here, http://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289 . I also agree here with working850 suggestion about looking and applying to the  good credit union. If you will read the post that I shared to you, you can find out his first time experience and mostly, reading his important tips on how to search for leasing or buying a car. I hope that I gave you an idea here.

“Life is like riding a bicycle. To keep your balance, you must keep moving.” ― Albert Einstein
New Visitor

Re: First time buyer with decent score, Application denied.

Thanks for the advice! I'll look into going by a local credit union to see what they can offer me. I did try capitalones auto navigator and that was also denied, so it seems like a credit union is my best bet.

New Member

Re: First time buyer with decent score, Application denied.

Hoping that you can find great credit union. Good luck to you.

“Life is like riding a bicycle. To keep your balance, you must keep moving.” ― Albert Einstein
Highlighted
Established Contributor

Re: First time buyer with decent score, Application denied.

Yeah go with a good credit union.  If not that, just find the car you want online and then go to the dealer and have them find the financing for you.