Credit Union Denial - Short Credit History

[DeadlyPersona]

I mentioned in a previous post that I was in NEED of a vehicle.  I went into my local bank (credit union) today and talked with a financial officer in regards to getting pre-approved for an auto loan.  After we discussed the amount of the loan he pulled my credit report (Equifax) and agreed that I was a great candidate for the loan.  However, the final decision was not up to him but his supervior.........who denied me.

The supervisor's reason for denial......the length of my credit history.  Although, my accounts were in good standing (no collections, no baddies, no lates, etc), my credit history timeline was too short and he said I should come back in 6 months.  I know most of my accounts all started this year (2014) but waiting another 6 months for a vehicle.......oh wow.

Any suggestions?

[Anonymous]

how old is your oldest account? do you have any account open with your local CU? 

Here is I would do.

1. IF you didnt have account with them, I would open a checking with them.

2. Depending on how old is  your oldest account, assuming is this year, I would wait 6-12months.

3. During time waiting period, I would take a small secure loan installment with that CU bank to build a good relationship with them.

4. By 6-12months your tradline with be nice and strong for the lender to considered you a loan.

[DeadlyPersona]

My oldest account is a student loan opened in 2006 and has since been paid the last activity shown was 2011.

I've been with this credit union since 2003-2004.  Over that time I've acquired the following with them:

* checking/savings accounts

* unsecured credit card (which was increased from $300 tp $1300 in less than 3 months)

* accounts for kids

* college account for kids

I brought up all of these facts with the financial officer and supervisor.  The supervisor's response was that he still needed to see more credit history since most of the accounts appearing on my credit report were recent (this year) and wanted to see that i could maintain a good credit history another 6 months.

Yes, I'm happy that I've did a wonderful job with my credit (thanks to a lot of reading here on the forums) and I'm not upset with him for the denial.  Unfortunately, I may have to go to a dealership and try to get approved.