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Getting a Loan with New/Thin Credit File (without co-signer)

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Valued Contributor

Getting a Loan with New/Thin Credit File (without co-signer)

Hi All,

 

Has anyone had success getting approved for an auto loan with new credit (& no co-signer)? I've seen a few posts here where people got a loan with a high interest rate (20-25%), and I'd like to know your experience and who the lender was.

 

My credit history is relatively new (only 4-5 months long), so I don't have a Fico Score with TU or EQ, but I do have one through EX (see sig) because I have an old Chase account still showing (should be aging off after this month though). Unfortunately, I don't think my car will last another two months before I have scores with all three credit bureaus. My fiance offered to co-sign, but he wants me to try on my own first (I think he's getting cold feet).

 

*FYI - I did try a few SP applications 1.5 months ago with no luck. There was one Honda dealer that said they can get me an approval, but I'd like a few other financing options before showing up there to see what they can get me. My other issue is I still don't know what car I want. I'm familiar with Hondas, but looking to branch out. I've also looked at Toyota and Mazda (fell in love with the Mazda 3 Touring), but without knowing what kind of rates I'll be getting, I don't know what I can comfortably afford.





13 REPLIES 13
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Valued Member

Re: Getting a Loan with New/Thin Credit File (without co-signer)

DCU will give loans with less than 6 months history and no score reporting. I would definitely give them a shot. I was in the same boat and they actually gave me a decent interest rate (considering the lack of credit file) of about 6.5%. In that program for thin file/no score They will only loan up to 80% of the purchase price so you will need to come up with the rest as a down payment. I also believe that they will only loan up to 50% of your annual income so if you make $40,000 a year for example they will not loan more than $20,000 for a vehicle

Message 2 of 14
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Valued Contributor

Re: Getting a Loan with New/Thin Credit File (without co-signer)

That is fantastic news, thanks! DCU is definitely on my list of CUs to try. Did you already have a relationship with them when you applied? I was already planning to put a 20-25% down payment so that should be no problem at all. I have been anxious about this for weeks now, so this brings me hope. 😊





Message 3 of 14
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Valued Member

Re: Getting a Loan with New/Thin Credit File (without co-signer)

No I opened a checking account at the time I applied for the loan. I also had a very similar profile to your with just a couple small rebuilder cards. They approved me in June, dealership was offering 18% and I had already turned that down. Tried DCU a few days later as a last resort and was surprised at approval. They also gave me a $4,000 credit card. At that time I only had 2 other cards with about $500 limits.
Message 4 of 14
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Valued Contributor

Re: Getting a Loan with New/Thin Credit File (without co-signer)


@MazeSD619 wrote:
No I opened a checking account at the time I applied for the loan. I also had a very similar profile to your with just a couple small rebuilder cards. They approved me in June, dealership was offering 18% and I had already turned that down. Tried DCU a few days later as a last resort and was surprised at approval. They also gave me a $4,000 credit card. At that time I only had 2 other cards with about $500 limits.

Wow! Getting my hopes high now. I have a few more questions if you don’t mind. I really appreciate the feedback (this is so helpful). Did you apply with DCU online and/or did you ever speak to someone during the loan process? Also, did you ask for the CC or did they offer it? I’m interested in doing that since I only have two cards. Finally, what dealership offered you 18% (out of curiosity). I may do my application tomorrow.





Message 5 of 14
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Valued Member

Re: Getting a Loan with New/Thin Credit File (without co-signer)

It was a Toyota dealership. I still bought the car there but not with their financing. When I applied at DCU I called and applied over the phone. When she said approved I asked about a card and she said cool. They were very easy to work
Message 6 of 14
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Valued Contributor

Re: Getting a Loan with New/Thin Credit File (without co-signer)


@MazeSD619 wrote:
It was a Toyota dealership. I still bought the car there but not with their financing. When I applied at DCU I called and applied over the phone. When she said approved I asked about a card and she said cool. They were very easy to work

And you applied for a bank account in the same phone call as well? Never thought to call. Thanks so much! Keeping my fingers crossed 🤞 





Message 7 of 14
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Valued Member

Re: Getting a Loan with New/Thin Credit File (without co-signer)

I called to apply for auto loan. Once approved they will want you to open a checking/savings account with them and deposit $5.
Message 8 of 14
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Valued Contributor

Re: Getting a Loan with New/Thin Credit File (without co-signer)

UPDATE: I got approved! 6 weeks ago, I couldn’t even prequalify. Now I have two approvals. Decided to try Capital One Auto yesterday and I was prequalified. Interest rates were 8.64% - 10.4% depending on vehicle (looking at vehicles $25k or less). FYI they had denied me in late August for having a thin file, so I added a second CC and waited for it to report, so it looks like that helped.

 

Feeling a little more confident, I called DCU this morning and was approved at 7.49% or 6.99% if I add direct deposit. Before I could even ask, they also offered me a Visa with a $5,000 SL!





Message 9 of 14
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Re: Getting a Loan with New/Thin Credit File (without co-signer)

Congratulations! Glad it worked out for you. I have nothing but good things to say about DCU in the time I've been a member

Message 10 of 14
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