topic Re: TESLA LEASE REJECTED with good credit. in General Credit Topics

Where can I go from here?

californiaboy935 — Mon, 15 Jun 2020 08:07:23 GMT

Hi all! Just posted in the auto credit seeking forum here about my recent decline for credit from Tesla Financial... which is disappointing to say the least. I was convinced I had good credit and hd been working up a strong portfoli of cards and sustainable debt. That I paid on a monthly basis in full. Alas, it seems it was all for not, as my Mercedes is dying and I couldnt get approved for a lease in my own name.

So i'll put what I got out there and follow my MyFico friends advice. Where should I go now? How do I increase my ability to support this loan/lease/good credit. Maybe you could say im loosing faith.

TESLA LEASE REJECTED with good credit.

californiaboy935 — Mon, 15 Jun 2020 07:43:03 GMT

Hey guys! I applied for a tesla lease but was rejected for a silly reason. I'm new to buying cars with financing, and would love to learn what i should do to remedy this. Unfortunately my parents and I don't have a good financial relatioship. So I dont have a good way to cosign. But I have a succesful business... but they require me as a personal gurantor so I dont even have that option.

I hold really high balances on my Amex and pay them off every month in full, so i thought that would be a good thing for my credit, but maybe not?

Re: Where can I go from here?

BmoreBull — Mon, 15 Jun 2020 09:52:09 GMT

Do you know what bureau they pulled? I can't really see you getting denied based on scores alone. I do remember another post of yours, aren't you self employed? That may be the hang up right there. A lot of banks give self employment a harder look than they do a regular 9-5. Sorry about your denial. Was a Tesla your only option that you were looking at?

Re: TESLA LEASE REJECTED with good credit.

Jnbmom — Mon, 15 Jun 2020 10:00:45 GMT

Credit scores are not all they consider. Their denial reason is you have a "young file", only time will help with that.

I believe you are 20 correct? I remember you getting advice previously about letting your file age and as with this recent denial it's best to let your file and accounts age some.

Re: Where can I go from here?

Gmood1 — Mon, 15 Jun 2020 10:53:07 GMT

Do you have any installment loans?

If not, time to grab a secured loan.

Also, how old is your oldest tradeline?

Without knowing, I'm guessing your credit history is short?

The $37k reporting on the Amex, could also be a factor. Scaring the UWs off. Even though it's sustainable for you.

I'd put that on a hidden tradeline or at least the majority of it.

Only because of the current state of the economy.

Also Navy may finance your Tesla.

They are known to finance individuals at the beginning of their credit journey.

Re: Where can I go from here?

SouthJamaica — Mon, 15 Jun 2020 11:37:28 GMT

@californiaboy935 wrote:
Hi all! Just posted in the auto credit seeking forum here about my recent decline for credit from Tesla Financial... which is disappointing to say the least. I was convinced I had good credit and hd been working up a strong portfoli of cards and sustainable debt. That I paid on a monthly basis in full. Alas, it seems it was all for not, as my Mercedes is dying and I couldnt get approved for a lease in my own name.

So i'll put what I got out there and follow my MyFico friends advice. Where should I go now? How do I increase my ability to support this loan/lease/good credit. Maybe you could say im loosing faith.

The 3 things which jump out at me are (a) your $37k balance on an American Express card, (b) the fact that you are a Navy Federal Credit Union member (If I were you I'd look to NFCU, not Tesla, for the car loan), and (c) you haven't told us what reason was given for the credit denial, which should give you a very strong clue as to what happened.

Re: TESLA LEASE REJECTED with good credit.

Anonymous — Mon, 15 Jun 2020 12:22:49 GMT

While running $266k through an AMEX card YTD may seem flashy to you, it's not always going to impress a lender (and in some cases could hurt - if those are business expenses, if I was you, I'd get them on separate business credit...)

You have a young/thin file. Have you ever had another loan that you've satisfied?

If your reported/verifiable income supports the spend that you depict, I would think you have a chance of getting a loan from a 3rd party institution. Especially one that you have a banking relationship with. Truth be told, car loans are not really that hard to obtain if income/DTI/collateral all fall into specs.

Re: Where can I go from here?

ccquest — Mon, 15 Jun 2020 12:21:53 GMT

What portion of the balance is the $37k? If it is a high proportion, any chance you might be able to shuffle that to be split between a few cards for at least one reporting period?

Otherwise, agree with above about checking with your credit union for financing options first.

Re: TESLA LEASE REJECTED with good credit.

Mv350 — Mon, 15 Jun 2020 13:21:21 GMT

@californiaboy935 wrote:
Hey guys! I applied for a tesla lease but was rejected for a silly reason. I'm new to buying cars with financing, and would love to learn what i should do to remedy this. Unfortunately my parents and I don't have a good financial relatioship. So I dont have a good way to cosign. But I have a succesful business... but they require me as a personal gurantor so I dont even have that option.

I hold really high balances on my Amex and pay them off every month in full, so i thought that would be a good thing for my credit, but maybe not?

It says right there. 1 reason. Insufficient comparable credit experience.

You need a prior installment loan. Open an SSL or get a cosigner. That will show you pay back a loan on a monthly basis.

Re: TESLA LEASE REJECTED with good credit.

Remedios — Mon, 15 Jun 2020 13:27:32 GMT

@californiaboy935 I've merged your two threads dealing with identical issue.

Please avoid cross -posting, it creates confusion and redundant answers.

Re: Where can I go from here?

californiaboy935 — Mon, 15 Jun 2020 15:39:58 GMT

@ccquest wrote:
What portion of the balance is the $37k? If it is a high proportion, any chance you might be able to shuffle that to be split between a few cards for at least one reporting period?

Otherwise, agree with above about checking with your credit union for financing options first.

The 37k is from the Amex Platinum. So it's not really a portion, just an open ended NPSL Charge Card.

Re: Where can I go from here?

californiaboy935 — Mon, 15 Jun 2020 15:43:04 GMT

@BmoreBull wrote:
Do you know what bureau they pulled? I can't really see you getting denied based on scores alone. I do remember another post of yours, aren't you self employed? That may be the hang up right there. A lot of banks give self employment a harder look than they do a regular 9-5. Sorry about your denial. Was a Tesla your only option that you were looking at?

They pulled my Experian credit Report, that that's the one you are seeing.

Yeah I'm self employed. But my Corporation is an S-Corp so it's a stand-alone entity. Currently I was only looking at a Tesla, but idk my mom says to just get a Honda and build up installment loan history that way.

The reason for the denial is interesting, at least to me.

Re: TESLA LEASE REJECTED with good credit.

californiaboy935 — Mon, 15 Jun 2020 15:44:19 GMT

@Jnbmom wrote:
Credit scores are not all they consider. Their denial reason is you have a "young file", only time will help with that.

I believe you are 20 correct? I remember you getting advice previously about letting your file age and as with this recent denial it's best to let your file and accounts age some.

Yeah I'm 21 now (as of May) and started my credit journey at 18. So maybe that's not enough time. I consistently pay down big balances, so I guess I just expected more for my income and credit history.

Re: TESLA LEASE REJECTED with good credit.

sccredit — Mon, 15 Jun 2020 16:30:18 GMT

Most any lender is going to want to see the illustrated ability to service the requested debt. Most have to build up to it. Maybe a $30k auto loan, then a $50k loan, then up to whatever amount. IMO their reasoning isn't silly, it is a legit business concern, especially right now.

Re: TESLA LEASE REJECTED with good credit.

Anonymous — Mon, 15 Jun 2020 20:56:39 GMT

@californiaboy935 I was in the car business 21+ years, but want to mention I have been out 8 years and there was never a pandemic when I was....mention these two things in case things have changed. What I remember is exactly what your decline reason is....no comparable credit line. In other words, no previous CAR CREDIT. You are considered a first time buyer with regards to buying a car. If you must do a lease, couple things.....ask how much $$ down will it take to secure an approval without co-signer, just by yourself. If they give you a number you are comfortable with, proceed. If they say no matter how much down payment, still declined without co-signer....you may check with NFCU whether they do leases or any of your other banks. I absolutely agree with the suggestions to just finance with NFCU whether they do leases or just conventional. They are probably your best bet for a great rate and approval...or your bank you run your business finances through if not successful with NFCU. Good luck!🤞🏼 🚗

Re: TESLA LEASE REJECTED with good credit.

Girlzilla88 — Mon, 15 Jun 2020 21:00:46 GMT

I agree with GoNavy I am currently in the Car Business and First Time Buyers (those with no car credit) some places will allow higher down with no cosigner, but some just won't so your best shot is to see what they say, they may even need half down or something high so just be prepared, but if it's a no go then I agree to shoot your shot with NF (get approved before going there with your own financing) Good Luck and post updates

Re: TESLA LEASE REJECTED with good credit.

iced — Mon, 15 Jun 2020 23:30:44 GMT

Honestly, I'd look into buying instead of leasing. You open up options with other lenders who may be more tolerant of your thin file, you can put a large down payment down to calm the lender's fears, and Tesla's lease rates are known to be among the worst in the industry.

Re: TESLA LEASE REJECTED with good credit.

californiaboy935 — Tue, 16 Jun 2020 00:26:37 GMT

@sccredit wrote:
Most any lender is going to want to see the illustrated ability to service the requested debt. Most have to build up to it. Maybe a $30k auto loan, then a $50k loan, then up to whatever amount. IMO their reasoning isn't silly, it is a legit business concern, especially right now.

Yeah its actually pretty reasonable. 41,367 is i were to pay cash. And i wanted to put $5,000 or 10k towards the lease.

Re: TESLA LEASE REJECTED with good credit.

californiaboy935 — Tue, 16 Jun 2020 00:47:40 GMT

@iced wrote:
Honestly, I'd look into buying instead of leasing. You open up options with other lenders who may be more tolerant of your thin file, you can put a large down payment down to calm the lender's fears, and Tesla's lease rates are known to be among the worst in the industry.

I agree. Just contacted my banker to see her rates. But she confirms that many banks are tightening up lending.

Re: TESLA LEASE REJECTED with good credit.

californiaboy935 — Tue, 16 Jun 2020 01:03:29 GMT

@Girlzilla88 wrote:
I agree with GoNavy I am currently in the Car Business and First Time Buyers (those with no car credit) some places will allow higher down with no cosigner, but some just won't so your best shot is to see what they say, they may even need half down or something high so just be prepared, but if it's a no go then I agree to shoot your shot with NF (get approved before going there with your own financing) Good Luck and post updates

Just got off the phone, they wouldnt allow that because they fund Tesla financing through partner banks (JP Morgen -Figures-, Wells Fargo, PCNG, RBC) so looks like those banks said they wont do first time car buyers as a general rule for leasees. But who know thiss butt coulkd just be smoke screening me.