Short credit history & employment

[Anonymous]

Hello,

I’m seeking advice on getting an auto loan. I lived outside the U.S. for 8 years and moved back in 2013 (U.S. citizen). Hence, I had no credit history when I returned and am in the process of building credit. I’ve gotten denied for an auto loan from Honda Financial and Capital One (applied to both online).

I assume that my credit report triggers an automatic denial. Advice on how to proceed to get an auto loan? I’m looking to buy a new Honda Civic or something in that class. 

Credit Score:

(obtained from Equifax):

Equifax 679

Experian 726

TransUnion 708

AAoA: 1 year

# of positive trade lines: 1

# of negative trade lines: 0

Income: $85k/annual

Length of Employment: 6 months

Previous Loan Experience: none in 18 years

Debt-to-Income (DTI): 18%

Year of Car: 2014

Miles: new

Purchase/Refinance: purchase

Requested loan term (XX Months): 48

Down payment amount: can make any amount up to $10k

Co-borrower/Co-Signer: none

For the last year I’ve had a secured credit card through Wells Fargo, which is my only debt at this time and it’s paid in full every month. WF also just sent me a letter stating that the card would be converted to an unsecured card later this month.

Any other options for pre-approval or other suggestions for financing a car?

Thanks!

[goldengopher1991]

I have the exact same situation.  One credit card, AAoA is 0.5 years. I started applying for auto loans on monday and every single company rejected me, even though I was only seeking $8,500 for 24 months and my credit scores are in the low 700s (even though I have nothing much on them).

I've been 100% successful at Credit Unions so far. Go for a credit union, you should have no problem. I got a 1.24% APR with DCU.

[Remember0]

Try a credit union, yes.

But in general, try to get a total of at least 3 good credit cards reporting. A lot of creditors look for 3+ active, good tradelines.