Denied RV loan, AAoA sucks, options?

[Anonymous]

Wondering if anyone has any ideas/advice for an RV loan dilemma... 

I have okay credit, but did a foolish app spree after my home loan closed.. I fixed my credit from low 500’s to a mid of 640 for the mortgage, I’d never had credit before so I went overboard out of sheer excitement.  Oops. 

Trying to purchase a $30k RV for an upcoming vacation in Aug, got denied everywhere! Dealership, credit union, online… all no’s. Main reasons: Too many new accounts, overextended, too many inquiries, public record on account, late payments on account. 

I DID open too much new credit, I admit. But I have the income to support it (I am NOT overextended by any means) and I have been incredibly responsible with credit since I got a good job 3 years ago.  

Current FICO scores, via MyFico, are:

TU 683, EX 690, EQ 628

Baddies:

2 paid judgments, both from 2013, showing up as paid on all 3 reports.

EQ: 4 medical collections, 2012, totaling about $1200 (I disputed all 4 of them, awaiting results, they are valid although the balance is questionable)

Ex: 1 medical collection from 2012 for $101

TU: No collections

Last late payment: 30 months ago on an old car loan. Worst ever: 60 days late, from 2013.  Still reporting as “adverse account” due to the old lates.

CC: Care credit, $0 balance, $1700 limit.  2 months old

American Express, $0 balance, $500 limit, 8 months old

Barclay card, $480 balance, $1500 limit, 8 months old. $25 min payment.

Chase Amazon: $0 balance, $500 limit, 8 months old

Cap1, $0 balance, $1200 limit, 3 years old

No late ever on any CC’s.

Loans: Mortgage, $1600 monthly, $270 of 285k balance, 11 months old, never late

Car 1: $470mo,  1.5 years old, never late

Car 2: $502, 7 months old, never late

Installment loan, $0 balance, $5000 limit, 3 years old, never late

Income: Salaried and verifiable at $99k/year, same job 3+ years (less on last year W2’s since I took 6 months of unpaid maternity leave but have been back to work 9+ months, same job as before.. one loan denied me based off last year’s W2 income!!)

DTI: Current mortgage+loans+1 credit card w/ balance = $2597 monthly / $8250 gross monthly income = 31%

Anything I can do? There is nothing I can do about the judgments now, but they are paid, so it was frustrating to get denied based on judgments. No lates anywhere in over 2 years.  My DTI is good enough I could support another $500 loan and stay under 37% or so.  I have 10-20% cash for a down payment.

I know I should be patient.. I was patient for the mortgage… but I have the income and my scores aren’t terrible, wish someone would listen to my story rather than just an automated system denying over and over.  

Is personal unsecured loan even an option here? My home is worth about $310k, I keep getting offers for 100% cash out refinance based on the home’s value which would put 30k back in my hands… but this seems fishy.  I would even take a subprime loan with a terrible interest rate, because I can pay the loan off in about 1 year or so.  Just don’t want to miss out on an August vacation opportunity if possible…

Why can't lenders just TRUST us, yknow?

[pipeguy]

If I were you I'd rent one for the vacation, that way not only do you get to take your RV trip, but you'll get a test run in knowing if you in fact want to own one for a lot less than $30k. Next year if you decide to go RV'ing, you can try again. RV's are like boats, lots of fun to use a little, but expensive to maintain, drive and store - an extended test drive just might be a $30k blessing. 

[Anonymous]

I have rented one many times before which is why I'd like to buy one...I even went and picked out the model at the RV dealership that I am familiar with.... we're a BIG camping family, I used to sleep in the dirt on sticks but after having my twins last year, I just need a bed these days.  Since I work so much, going to weekend campgrounds is basically the only way I get any vacation/quality time with the kiddos and we've got a family reunion in the middle of a dessert in August =/ 

I suppose I'm mostly just ranting.. I wanted to have a shiny new toy since I've worked SO hard to get to this point (put myself through 6 years of grad school to land this job I have, paid out of pocket and don't owe the school a dime).  Renting is of course an option.  But I don't wanna! 

The dealership said that it's difficult to get a loan on trailers since they aren't a necessity... I was just hoping a stable income would help balance some of the negatives. 

[Anonymous]

There are few speciality  RV lenders.  Merrick yes Merrick Bank has an boat/RV department. I never used them.  Have you tried them?   

[thom02099]

You may want to look to Essex Credit, a division of Bank of the West.  They specialise in loans on boats and RVs, and their requirements can be less stringent. 

That said...all recreational vehicles are considered "luxuries".  They are non-essential.  Thus, their interest rates, even with Essex, will be more than other types of loans.

I have my trailer financed through Essex, and payments are made to Bank of the West.  Intially, it was done by coupons and checks at the local BoftheW branch.  They are now automated (through Western Union) for payments on line.    

Even though you have the income to support it, your credit report is a mixed bag.  I KNOW that feeling of wanting to buy a new toy (I'm currently going through that with a new-to-me tow vehicle for my trailer), but sometimes common sense says to slow down and wait.  You still DO have the option of renting again, even though you want one of your own.  Rent again this year, if Essex doesn't work out, and try again in a year, when you've got that 12 months of additional payments and AAoA increase.  Don't do anything else credit wise for the next 12 months, if Essex doesn't work out this year.  You can always try again in 12 months. 

IMHO, you should not even consider the 100% cash out refi, at least not in this less-than-stable economy and political environment.   Though your house may be worth $310K now, that may not be the case a year from now, depending on your geographical location and what continues to happen in the economic and political worlds. I would never put my house in jeopardy for a $30K toy.