Nervous of rejection, will I get approved?

[Anonymous]

Hi I'm 20 yrs old, I'm about to go into my senior yr at my university and I need a car. I live with my mother and brother and we all share one car and it's been really stressful on the family to share [mom works at home and me and my brother have to routinely go back and forth]. I work really hard and I want to buy a nice car for my senior year AND 21st birthday. I DO NOT have a cosigner. My mom does not have good credit and I'm not that close to other family members to ask.

I originally got rejected from Honda at the end of April 2009 and was devastated [credit score was about 650. And have been putting myself in gear ever since]. My credit score by the end of august should hit 700. I want to know if this is better and if I will get approved [I CANT deal with being rejected again]. I really need this car for school and work since I just got promoted.

I make about 35,000-40,000 a yr. My mother is paying my insurance. Thanks for the help!

[Anonymous]

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@Anonymous wrote:

Hi I'm 20 yrs old, I'm about to go into my senior yr at my university and I need a car. I live with my mother and brother and we all share one car and it's been really stressful on the family to share [mom works at home and me and my brother have to routinely go back and forth]. I work really hard and I want to buy a nice car for my senior year AND 21st birthday. I DO NOT have a cosigner. My mom does not have good credit and I'm not that close to other family members to ask.

I originally got rejected from Honda at the end of April 2009 and was devastated [credit score was about 650. And have been putting myself in gear ever since]. My credit score by the end of august should hit 700. I want to know if this is better and if I will get approved [I CANT deal with being rejected again]. I really need this car for school and work since I just got promoted.

I make about 35,000-40,000 a yr. My mother is paying my insurance. Thanks for the help!

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You were probably denied due to lack of credit history, Score does not have as much say in your case.

1- Downpayment!!!! 20%+

2- New car  under 22k transaction, look for student rebates

3- 1 year at employer?

I would recommend somethng small/inexpensive like a Ford Focus.

You have to crawl before you walk. An financed car beats a "nice car" you really want every day.

[Anonymous]

I'm not going to be disrespectful just because I do not find your answer appealing. Not all of us 20 yr olds are immature and stubborn. haha!

I wasn't looking for anything crazy. To me I want a nice but affordable car like a Honda. [I would rather save or invest money than put it towards a car that will dub me as cool]. I would like to think of myself as practical. I was also thinking of a Hyundai. I've been using credit for about two years [I know it's not long but hey I'm young]. My employer is going to hit the one year mark. Originally, in April, they were going to give me a car with 2,000 down a Honda Civic LX. But I could not come up with the money.

You've only mentioned why I got rejected in the past but with what I have now I'm trying to figure out if I'll get approved as of September. I understand why I got rejected then, I cannot do anything about the length of my history but I think I've been **bleep** with my credit enough - do not own late payments on any four of my accounts and I think I do well money wise for a full time student. So like I said, with all that I have is it enough or am I still a stretch for a decent car? Would it be better if I went to a bank ?

Thanks again!

[nes]

i think going with somithing along the lines of a new ford focus you will be ok, as long as you finance through ford, check your local ford dealer and see what they can do.

[Lel]

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Rednewspaper wrote:

I'm not going to be disrespectful just because I do not find your answer appealing. Not all of us 20 yr olds are immature and stubborn. haha!

I wasn't looking for anything crazy. To me I want a nice but affordable car like a Honda. [I would rather save or invest money than put it towards a car that will dub me as cool]. I would like to think of myself as practical. I was also thinking of a Hyundai. I've been using credit for about two years [I know it's not long but hey I'm young]. My employer is going to hit the one year mark. Originally, in April, they were going to give me a car with 2,000 down a Honda Civic LX. But I could not come up with the money.

You've only mentioned why I got rejected in the past but with what I have now I'm trying to figure out if I'll get approved as of September. I understand why I got rejected then, I cannot do anything about the length of my history but I think I've been **bleep** with my credit enough - do not own late payments on any four of my accounts and I think I do well money wise for a full time student. So like I said, with all that I have is it enough or am I still a stretch for a decent car? Would it be better if I went to a bank ?

Thanks again!

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Rednewspaper, I don't understand why you had such a negative response to a valid answer to your question.  If you are going to ask for advice on these forums, you have to prepared to receive answers that you might not like.  And yes, the tone of your response is disrespectful.

You have your answer.  Your credit score, even if it does go up to 700 as you are assuming, may not be sufficient to be approved.  There's more to a loan approval than a credit score.  There's more to a loan approval than the length of your credit history.  Having a decent down payment can go a long way towards an approval.

Until you posted your second message on this thread, you had not provided sufficient information for anyone to speculate on the reason for your loan rejection.  Now we know a little more - Honda Civic LX, which probably was selling in the $17,000-$18,000 range, and no down payment.  Have you saved up the money for a down payment now?

Welcome to the forums.

[Anonymous]

I really don't know how my tone was taken as rude or disrespectful and my response wasn't negative at all. He gave me the gist off of the little information I provided, and following his signature I asked him more questions/background story so I know an answer more detailed to me. I really don't see how I'm coming off rude. And I was not giving a churlish tone because I didn't like his answer either [I would prefer honesty over getting hopes up], so if possible I would rather not be called disrespectful again.

Regardless, thank you for clarifying. 

Edit: as well re-reading my previous post the bleeped word wasn't actually a curse. I guess another form of the word would be extremely attentive/orderly/nuts but used the 4 letter word that begins with "a."

Message Edited by Rednewspaper on 08-13-2009 12:28 AM

[Lel]

Understood.  On these forums, it is sometimes difficult to grasp a person's intent from any given message.  I read and re-read your message several times and I always sensed a defensive tone.  Anyways, it's water under the bridge now as far as I'm concerned.

Good luck on your car buying endeavors!

[Anonymous]

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@Anonymous wrote:

You've only mentioned why I got rejected in the past but with what I have now I'm trying to figure out if I'll get approved as of September. I understand why I got rejected then, I cannot do anything about the length of my history but I think I've been **bleep** with my credit enough - do not own late payments on any four of my accounts and I think I do well money wise for a full time student. So like I said, with all that I have is it enough or am I still a stretch for a decent car? Would it be better if I went to a bank ?

Thanks again!

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Your credit score is not the only factor in a car loan.

Especially a car loan.

A trained monkey with a Target card with a $200 limit and a Chase card with a $300 limit, assuming they are both 30 months old and have a few dollars charged on them will have a 700+ credit score.

You simply have no big (car) credit history.

And there is no way to fix that.

Many banks find a year employment as a big plus, so don't bother unless you have that.

A downpayment can help a LOT.

And I mean 20% of transaction or more.

When you were denied in April, had you been approved you would have had a $380 payment. Add insurance and you would have been at 500.  If you have put that $500 a month in the bank each month, as if you were making a car payment you would have a respectable down payment right now.

if you do not have 1 year at your employer, and $2K-$4K to put down, to be honest you need to put your plans on hold until you have that.

I am sorry, it doesn't matter what you want, that's just kinda how it is.

[LindaLu]

red newspaper...I don't think you sounded disrespectful at all...just keep in mind that people  that come on this forum give advise and alot of it is helpful and some not but if  they didn't have credit issues themselves at one time they wouldn't be on her so don't let anyone fool you.

alot of dealerships will check with several different places..with a 650 credit score you should have gotten some approval even if a high interest rate..my daughter is 19 and has a 609 and at the dealership the other day she was told she was really close to getting the loan on her own but even if was approved it would have been a high interest rate anyway because of lack of credit not bad credit..she fortunately had grandma with fabulous credit cosign and got a great car.

check around...maybe even a credit union would be more likely from what I hear.

good luck

[Anonymous]

I would strongly suggest financiing your vehicle through a credit union. Are you currently a member of a credit union? If you are really concern about being denied for a car loan again, perhaps you can bring a current copy of your credit report and talk with a loan officer. I was fortunate enough to have my mother co-sign my first vehicle (2000 honda civic ex) when I turned 19. I can only imagine how tough things are on you and your family.. Good luck though, and keep us updated!