Why can't I get qualified?

[Anonymous]

Hi all,

This is my first post here and I'm completely perplexed by my credit problems.

Credit score:

Ex: 780 Tr:762 Eq:772

Never missed a payment on any of my several credit cards. The oldest of which is 12 years.

Never had any kind of loan. Just credit cards.

Cards are routinely paid off, Income is just north of $45k per year. Employed about 18 months.

Sounds good right?

HOWEVER!

I have been told by every single bank I've tried to qualify for that they cannot help me get a car loan.

I know that before I buy my first house I should at least have some evidence of a good long term secured loan repayment. So that's why i'm trying to buy an electric scooter that costs about $11,000. I have $2,500 to use as a down payment. I have my motorcycle endorsement and I even have a safety certification.

Here's the kicker, they all tell me that I have amazing credit and they would love to loan to me, but they just can't because i've never had an auto loan before! What the heck?! I can't get an auto loan before I have an auto loan?! Catch-22 doesn't sound too far off.  Nobody will touch me as a credit risk. Why? Nothing has ever gone to collections with me, I have never declared bankruptcy ever, and I always pay my bills on time. 

So loanless, such confuse, much frustration.

I've been turned down by two banks and a credit union. Cosigners aren't an option for me (no family, or real friends to speak of live near me). 

I'm worried about going to the dealership because if they turn me down that will be hard pull number 4 in the last two months. I really don't want my score to drop. 

What do I do? Do you think the dealership will approve me?

Thoughts?

[ohvrolla]

I fell off the credit map for many years to the point of no tradelines showing on any credit report. Eventually got a few credit cards, and when I bought my house last year the longest tradeline was a whopping 13 months so you might not need an installment loan on your report to get a mortgage.

As far as a loan for a scooter dealer financing might be the best way to go considering it's a scooter. Banks and credit unions might not want to touch that.

[sports1965]

Yes you have a better chance of getting approved at the dealership

[Anonymous]

Okay, is there any particular reason why the dealers will give me some more slack?

[Anonymous]

Try applying to more credit unions.  Try NASA FCU nasafcu.com.

[SamsungHDTV]

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@Anonymous wrote:

Okay, is there any particular reason why the dealers will give me some more slack?

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Captive lenders usually are just more lenient. Also, indirect finance departments also take more risk. For example, I had a client apply with me at my big bank. He was declined with absolute ideal credit, very high income, and he even has ~29K in available credit with our credit cards. He was declined! I had to work with the auto department, and they came back with a counter offer and approved him for $15K. He needed $30K. So he applied at the dealership, and he was approved for a very nice rate AT MY BANK for the amount he wanted. I was confused, but it was a learning experience for me. But he was approved through our indirect financing. Direct means you apply with the bank yourself. Indirect, the dealer applies on your behalf. Rate difference? Direct can get you a lower rate. Indirect can get you approved with easier guidelines. He still got 1.9%. 

How much are you applying for? A lot of the time banks wont approve over a certain amount to a first time car buyer. Refer to my true story above. 

[Creditaddict]

you are just waiting INQ's.

Scooters are already a special market

Sounds like you are buying a Vespa at that kind of price... Vespa has it's own financing, no one will beat that! (MAYBE... big maybe a credit union but again it's a scooter, not a car... it's hard to repo... you don't have loan history... just go to the dealership you should qualify for whatever apr special they have on scooters right now)

[Anonymous]

Okay so I just got back from the dealership and I was declined. 

What the heck man?!

The finance guy was super confused too. He told me that I had the highest credit score he'd seen in months and that the loan company said that I could qualify for 5.9% IF I got approved, which I didn't. Then my wife, who has years of student loans that she's been paying off tried to cosign with me and we were still declined!

I'm looking at getting a Zero FX electric bike that would require a loan of $11,000 I have $2,500 to put down right now! and they have their own financing company that I was working with. I'm super bummed out, but the dealer finance guy said that he was going to call around and talk to some of his finance people and "fight" for me. I believe him because I know he wants my business. 

I just don't understand, I have money, I have great credit, I have lots of responsible history with my cards. Why can't these people approve me?

[Erusidhion]

    There has to be a reason for all the declines. This really doesn't add up and I would be quite angry if I were getting denied like you have been. Best you can do is wait for a letter to arrive and see why you were denied. If those are FICO scores; those are fine. Hell; I think mid 600s and up will get you approved at a dealership dependent upon the amount you're trying to borrow. This should be a no brainer for them to approve this loan with $2,500 down.

    Is your current utilization really high on any/all of your cards? Are you self-employed in a volatile market perhaps? I assume you can prove your income with 6 months of bank statements etc. I don't know man there could be many or just one reason why they aren't approving you. I hope you find out and revisit this thread and give us an update on what is going on. 

    NASA FCU handing out 30k limit like crazy and you getting denied with $2500 down.... world is going mad.

[Anonymous]

I can tell you exactly why they're denying me.

"Lack of credit history"

that's what it's said on every single application denial. It's true that i've never had an intalment loan of any kind before but I have multiple credit cards well in excess of $10k combined limits. My utilization on all of them is less than 10% combined the oldest of which has a 12 year history of my paying on time, every time. I feel like i'm being punished for being responsible with my credit over the past few years. I really don't want to keep getting denied because each denial Dings my credit. I'm not self employed, I work at a major university and have done so for almost two years.

Please, if anyone knows ANYBODY who will listen to me I'm all ears.