08-20-2013 01:38 PM
I am having a bit of frustration. I am denied from getting a car loan with every lender I have tried (Chase/Capital One/Wells Fargo). I have not tried going into the dealership yet.. but so far it is not looking good.
Current scores: about 650 average from all three major per myfico
Income: about 110k
Baddies: a single judgment from 2004 (for $500 not sure if the amount matters)
Requested loan amount: 26k
No real credit history, no auto loans, one small school loan that I have been paying and currently has 1k left to be paid off.
Really nothing much to speak of on my credit report. No previous charge offs or collections. One major detail is that I have only been in my current job for 6 months and living in my current city for 6 months.
Could someone please point me to what I need to do, or just tell me I am dreaming and it won't work. The obvious option to just buy a car with the 10k cash I have.. well that is obvious and doing that will not help my credit improve. So please if anyone has a suggestion that is productive I would be really extremely appreciative.
08-20-2013 03:58 PM
Since you already have HP's for the auto loan you should go to the dealership and have them look for you. A lot of dealerships have good relationships woth banks and can also make you app look more desireable. You may be paying a higher APR, but once you get 6 months of good payment history you can always refi. Not only will this get you your loan, but it gets you the auto history you won't get with paying cash.
08-20-2013 04:00 PM
Exactly. Too few installment accounts, too few revolving accounts. I have set myself up with a Capital One secured card (As of a month ago) but that is about all I have done to resolve this. It is a bit of a quandry to me since I can't seem to get new accounts because I don't have some previous ones already. So I dunno.. looks like my options are bad ones. Get a loan through someplace with a fairly dicey reputation (like Roadloans) or.. I don't know what else there is I can do on my own as I do not have any co-signer. Perhaps my moving to a new city and getting a new job 6 months ago is something that doesn't show up on the rejections but is actually hurting me.
08-20-2013 04:03 PM
Ok thanks for the feedback. I will indeed attempt to try through a dealership. Unfortunately none of the cars which I am interested in are within 500 miles of where I live (not a crazy rare car, just that people in the midwest don't seem to buy them) so I will need to work with dealership finance over the phone. Hopefully that will not be a lot less effective.
08-20-2013 08:37 PM
Try dealership, ally auto or gm financial, I had 561 trans union with $0 down and rolling in $4000 negative equity. And got 8.9 Apr
Agreed, A dealership is going to be your best bet.
08-23-2013 10:09 AM
Thanks for the ideas people. I looked around on this website some more and heard some good stuff about DCU. Tried it, got approved for what I was after and a decent APR. Dealing with them was a breeze and I have a funny feeling that they are the only banking institution I tried that actually had a human being look at the numbers/credit report. Since I had 4 rejections, all online, and all within seconds. Even my own bank (PNC) whom I declined to apply with didn't have someone who was going to actually look at my income/credit report/expenditures, they were just going to run it through a computer and leave it at that. Kinda crappy how that works, for someone who has yet to be "established" in the credit sense.
08-23-2013 10:43 AM
I agree with your assessment^^^
The lender used to actually look at the applications and make decisions. Now that is all automated they save a ton of money by not having any personel involved, but they lose good lending opportunities too.
Maybe someday they will recognize that and go back to having people actually review the application...
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