06-23-2012 07:38 AM
Hello myFico forum.
Credit score: 636-662 depending on the agency.
Well let me state this plainly. I've been on the hunt for a car for the last 3 months or so. I know exactly what car I want (2012 Mazda 3) and have just been exploring options to get financing. I've owned two cars before but paid cash for both.
I have one charge off from a credit card rom when I was 19 and a freshman in college (that was nearly 6 years ago). I've paid it off a few months ago after seriously getting myself in the hunt for a car. Believe me when I say I really didn't understand how that was going to affect me long-term and really had no use for it anyway, since I was living in a big city and didn't need a car.
The last 10 days or so I've applied for a loans ranging from 13,000-20,000 and been rejected for all of them. I work in a restaurant downtown and make plenty enough money to pay for the car, but Its been quite a task proving this to the dealer, even though they know I can afford it based on where I work. Most server/waiters don't claim all their tips and I don't have the bank statements to back up what I truly make. (Believe me when I say I'm going to start depositing every dime I get from work from this moment forward, because if I had I could have already gotten something done...)
I could get a cheaper car, but I'm determined to exhaust every conceivable option until I can get in that car. I know that if I put down a few thousand I could probably get something, but really really want to avoid that if possible (going back to school in the fall and want an extra few thousand to fall back on).
I'm basically looking for any possible situation in which I can get what I want without having to put down 20% for the car.
Just trying to get some ideas here. Didn't know it would be that difficult to get a loan based on my score. Its not great, but its not bad either.
06-23-2012 07:39 AM
Where did you apply for loans? Did this include credit unions?
Follow my financial journey: http://www.frugalrican.com
06-23-2012 07:46 AM - edited 06-23-2012 07:48 AM
I've applied at one credit union so far (Baxter Credit Union). My father has a long history with them and thought I might do well there, although they're very particular about their lending standards. As it turns out, yeah they are very particular about their lending standards and rejected me.
Captial One rejected me a few times.
Whatever bank Hertz 'rent 2 buy' gets loans with
Mazda (The one in my area) has been struggling thus far, though they're still "trying" to get something through for me.
I've also tried one or two online creditors (myautoloan for one) and they approved me, but then shot out my info to about a billion dealers which led to my credit being run a dozen times in the last few days. My score has dropped at least 12 points because of this.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO