used auto loan denials

[Anonymous]

i have been denied twice in the last week .

desert schools credit union (non-member) said there wouldnt be a problem , but then it came back denied due to never having an auto loan before (paid cash for current  car)

wells fargo (3 month accounts and secured card) said no problem too , but then denied saying they wanted 3 years credit history and i only have 17 months .

any ideas of where i go from here ?

experian 676 , equifax/fico 665 .

was looking for a 25k loan , on earnings of 8500pcm.

do i save a few thousand for a large downpayment , then try for a lesser loan ammount in a few months ?

do i look for a small loan strait away to build my history ?

do i look for full ammount of loan now , but at a "bad-credit" establishment and pay the higher rates ?

[Anonymous]

If you can keep your current car, I would say do that - wait like a year and then in the future when your credit is established and strong get a car - meanwhile, save what you would have been for monthly payments - the more downpayment - the better chances of being approved and better rate...

If you HAVE to get a car - try cap1 - some people have reported decent rates and some not so much - I WOULDNT recommend them - this is just my opinion...

Good luck

[Creditaddict]

what kind of car are you looking at? sometimes the Dealership can do a lot more for you with financing then you going to the bank directly.

[Anonymous]

i could keep my current car for another 19 months , but all i've have at the end of that is a beat-up old car and 3 years history . meets wellsfargo requirements now , but will it in 19months ??

if i get a loan now , it will build my history and will also qualify me at desert schools .

non of these even asked about a downpayment !!!

keeping it and saving up it is one of the things i first thought about .

 i have a car for sale in england that will buy me a car over here (i may have to put a thousand or 2 towards it ) and i had planned on just keeping that cash in the bank until the right car came along .

but my commute to work is now 50miles a day and i just saved 300pcm on my rent , so i figured i'd get a newer car now (with rent savings helping the cost) , i'd save on gas mileage , i could still pay off more than the monthly payment , then pay a big lump-sum once my uk sells .

it all looked good in theory , in practice it has been hard work !!!

i'm looking at buying a used porsche 911 .

[Anonymous]

---

@Anonymous wrote:

do i save a few thousand for a large downpayment , then try for a lesser loan ammount in a few months ?
do i look for a small loan strait away to build my history ?
do i look for full ammount of loan now , but at a "bad-credit" establishment and pay the higher rates ?

---

I have been in a similar situation. You're either going to need to wait quite a bit more or put a substantial chunk down (like 20-30%+) for the downpayment in order to get approved.

*Edit: I would suggest saving up for a large downpayment. The more the better and the more likely you are to be approved. Your score is in decent shape but the limited history is what's being chosen as the deciding factor. Don't go for a small loan. Don't go for a bad-credit establishment if your current car is fine because you'll regret paying the higher APR  (and higher overall cost for the car) down the road.

[Anonymous]

thanks for the advice .

one of the local guys (phoenix) suggested that the used car dealers advertising in the free mags at gas stations etc. can get credit for anybody .

so i picked up a couple .......

if i can find something suitable , i'm going to enquire about credit and the penalties for paying early (both wells and desertschools said no charges) .

i'm then going to do some maths and see just how much i'll pay . high interest might not be so much of a problem if the loan is paid off quickly ?

but i'm not even letting them run a check until i've studied figures .......

will give me something to do for the next week

[Anonymous]

I was dinged at 24% on a 36 month loan. I'm still planning on paying it off early.. But haven't been able to take care of it as quick as I'd liked to.

After two months I noticed that they were applying like 60% of my payment toward interest. After that I started paying just the principal. It's still taking a while and I'm not looking forward to that last interest accrued payment.

[daisyduke]

you have a thin file. how about getting a cosigner - bank of mom or dad to co sign. do not go to the back of magazine to secure financing - think loan sharks...as Credit Addict said, dealerships (large ones) have access to many lenders....

[Anonymous]

i'm now thinking of giving up on this .

cant get finance anywhere .

called in at another  2 recommended credit unions after work today , and got them to call the "decision makers"  before i gave them details to run a credit check . both said everything is good , but my history is not long enough .

being an immigrant in this country sucks .

[Anonymous]

Too many H1B people getting here, getting credit and then abandoning their debt when their visa isn't renewed and they go back.