So I was car loan shopping and, after calling an asking, was denied everywhere for the same reason: Short credit history.
I tried my CU I go through, Penfed, DCU, and even lending tree. Same reason, credit history. Was even told my score and income is good, but the history is too short for me to be considered. Unless I had a cosigner.
There's really only two, three if she trusts me and I doubt it, people I can ask. My dad, his girlfriend, and (Probably not) my dads mom. Thing is my dad is rebuilding, his girlfriends credit is slightly higher than mine, and idk if my grandmother will even say yes. All three have almost ten years history compared to my one, but only two have higher scores than me and I guess thats what I Need.
I'm good on payments myself, which is good for a cosigner, but my history is short and its screwing with me. I just need a car so I can actually work extra hours (dont need to I just like fat paychecks).
I mean I can impatiently wait, but if there's a chance to do something now then I'm taking it. I just don't know what to do about getting a cosigner and then, when in a position to, dropping them.
You'd basically have to refinance the car to get them off the loan if you get a cosigner, but since you're likely going to want to refinance eventually anyway, that might not be a big deal.
Almost everyone can get approved for a car actually, including no-files, if you have money / income, which sounds like you do. What does your credit file look like? That's something you're going to want to strengthen anyway but to wit:
1) You can just pay cash for a beater, couple K, use it for a year, go on with life.
2) Talk to a used car dealer, either someplace like a Toyota dealership, or Carmax, or similar... get a cheaper older car FWIW.
There are other more expensive options like renting a car temporarily, but you need a not-quite deadbeat lender to get a loan (Santander was the one that financed mine): it will have a high APR, like 20%, but then you just refinance anyway in six months when the prettier lenders like the ones you listed will talk to you.
Will say this is a bad time though to be in this situation: subprime lending is presumably pulling back after defaults started to rise starting in October of last year, less money available, but I suspect you can still get it sorted.
Are you looking at FICO scores? The reason I ask is that I think you might be looking at Credit Karma. The reports are great, but few lenders use the VantageScores that CK provides. You can grab your three FICO scores along with reports by signing up for the $1 trial at CreditCheck Total, then canceling within the trial period.
How urgent is the car purchase? If you can wait, I bet you'd benefit by the Share Secure Loan from Alliant that many here get. Take a look at the first three posts in the thread. Basically, you open a $500 savings account, use it to secure a $500 loan, pay the loan down to $44, and spend five years paying off the rest of the $44. Doing that would likely pad both your history and score.
In addition to a card from your credit union, Capital One's Platinum might be a good option. I suggest it over Capital One's QuicksilverOne because the Platinum is easier to product-change into a better card down the road.
Op, check out Carvana they use a FAKO vantage score to approve their loans. You may have a small down payment but they take care of everything for you, and you can see if your approved with no risk to your score. I have never used their service but others on here have and it appears to yield good results. Asking a loved on to Cosign can be a very tense process and cause friction in the family. If you don't want to go the Carvana route I would suggest establishing a shared secured loan and paying it down to 10% of principle like others have suggested.
I'm getting my scores from creditchecktotal.
Car is half necessity, half want. I can wait and build, but not more than a yr cause I'm also trying to bounce states. Way too unhappy here.
I'll look into Carvana and alliant, not waiting five yrs if thats what's being suggested, and the capital one later on. I don't feel comfortable opening up too many credit cards at once, especially with my roommates who like stealing and the last thing I need being stolen is a credit card.
The beauty of the Alliant thing is that you get your score improvement in two months or maybe a little less. The idea is that an installment loan that's mostly paid off improves your score. This loan will be under 9% utilization almost right away, which put it's in its "sweet spot." Dragging the payments out causes it to stay in the sweet spot for the next five years. Another great thing about the Alliant loan is that it's all done with a soft pull.
Also, you have all but $44 of your money back almost right away. I believe you'll be paying about $9 in interest over the five years.
Questions can be asked in the Alliant thread linked to above. There are lots of people who've done this and can help.
Well I'll definitely look into it then, since I drags itself out and helps me a ton. I'm in a better position to built credit, so I'll really look at it.
And to tydawg, thanks for suggesting Carvana. I like their options and it looks like I have a chance at an approval. Waiting two weeks though,when I pay this last person off, but I'm happy enough.
Good luck! If you go with Carvana certainly update us so we have another datapoint!