640 and still denied..

[Anonymous]

Hey all quick question. Im in the process of building my credit back up I actually just took over my coworkers lease on his lexus and have 2 credit cards that i am paying off. If that was all that was on my credit then I would be set ims ure but in my younger days i made alot of mistakes collections all over the place and a volantury repo :-( anyway this is reguarding my brother. He is 20 years old and we both want a motorcycle bad. We were gonna try and get a bike year ago but figured id let his credit build a little more. so now 2 years establised credit he has a 680 from free credit report (which i know is worthless to lenders) so i figured hey since i work at a bank (us bank) maybe i can get him done through there. strike 1 came back a 640 and debt to income was a little off only becasue they put in he had rent when he doesnt but they still factor it in. so anyway we then apply online with honda from what everyone was saying honda is the most lieniant out of all the bike manaufactuers. after about half the day waiting another decline. so now we are told by motorcycle dealerships to try a credit union or go to the dealership and try for a credit card that they offer. So bottom line with a 640, one instalment loan thru ford paid in time for a year now, year on the job and a dicover credit card with a 1500 limit where can i get financing on a motorcycle? all our friends with simliar credit and age they got apporved why are we having such a difficult time i dont want to run his credit everywhere but we need some advice any tips would be greatly appretaited. and no we dont have a cosigner, and we can put a little money down if need be but other than that any other advice? thanks a ton. sorry for the puncuation errors kinda in a hurry lol

[Anonymous]

I'm no expert but that Repo is probably hurting you more than anything else, especially since your trying to get an auto loan and they care most about your past history with auto loans. You should try to see if you can PFD some of those collections, that may help some. And also, you should REALLY look into a credit union. They have good rates and they are pretty good to their members. Navy Federal is the best. I have had two auto loans through them and when my credit was good I got a 4.9% and when my credit was shot to hell I got an 11% and still got approved for a decent amount. If you have not so good credit traditional lenders will charge you a crazy interest rate.

[Anonymous]

Thank you very much jazzy. Yeah I know my credit is fixable without having to go the bankrupt route since besides the auto loan its just little stuff  like a collection here and there for small amounts like 40-100 dollars. They renew every month tho so it seems like one of those things where they wont just fall off. As for my brother and the motorcycle we are going to try today to go to a credit union talk with them then head to the dealership that works with that credit union. Thanks again for the tips.

[Anonymous]

I'm not sure how other credit unions work but when I went through navy fed. they just gave me a check for the amount that I was approved for and i could go buy from wherever i wanted. not just a specific dealership that they work with. I could even buy from a private seller if I wanted to.

[Anonymous]

yeah i wish my brother could just get approved for a personal loan becuase new bikes are so expensive I mean we found very very nice used ones for 5-6k saves us like 4-5 from buying a new one

[Donks3369]

Dave,

I'm sorry that you are having a hard time getting approved.  I can tell you, as I'm sure you know, getting credit in this economy is proving to be a tough thing.  I work in the loan department at a bank and your credit score used to be good enough.  Now I know most underwriters will kill a deal for low score, high LTV, high DTI.  Basically it almost seems as if they are looking for a reason to decline now.

Does your brother have any debt that he can pay off to lower his DTI?  He have any other baddies on his report that he can work on to raise his score?

[Anonymous]

Hey Donks thanks for the reply.

 Well actually he has nothing negative on his credit at all. Like I said he has a ford lease paid on time for a year now, had 2 hsbc credit cards that are paid off now (low limits) and a discover card with a 1500 limit and balance of just under 1k gross monthly bout little under 2k. reason the bank boosted his dti is because even tho he lives at home they factor in rent at about 300ish which ruined the deal. i work at a bank myself and that is where we tried first and it was frustrating but i understand the economy.

[Donks3369]

Dave,

I hope you didn't think I was implying you didn't understand the economy, that wasn't my intention.  That is one thing I hate though, at my bank they add $500 to everyones expenses as rent or whatever.  It's like it almost punishes you for figuring out how not to pay rent.  I don't think anyone should be punished for living at home, or taking on roommates.

That being said, have you tried Capital One?  I know that have been somewhat lenient.  Then again you would have to work with Capital One.

[Anonymous]

Donks o no lol i never thought thats how you meant to come off appretiate the info tho man. yeah i called sheffield finance who finances suzukis and what not and they seem really strict but they where really nice, not sure what else to try we are going to go to the motorcycle dealer today and see whats up if a no go down here i have some connectons in columbus but i guess that funancing card is no longer offered on the 4 main brands suzuki kawasaki honnda and yahamha

[Donks3369]

Well good luck, I hope everything works out for you.

If you don't mind me asking what type of bike are you looking for?

I'm trying to decide on whether I want to get rid of my sport bike and buy a cruiser.  Seems like everyone has an opinion on what is better, but I think it just a personal preference thing.