Although not having an installment loan is affecting your credit mix, that is only a small portion of your FICO score and is most likely not the reason that you were declined for a CLI. Companies can note anything they want as a declining reason, doesn't necessarily means it's the true one. Here are the biggest issues I see with your credit profile when it comes to potentially buying a car:
1. Short AAoA. A thin credit file is the reason your score is reasonably high, but auto lenders are not going to be keep to see it. You have not had time to show you are responsible with credit.
2. You have a lot of low limit builder cards - overall this is fine (although it's way more cards than you need), but you have a lot of new credit, which hurts your FICO and the way underwriters look at you.
3. You are most likely a young person and do not have an auto-history. Lenders are typically weery of buyers with no history. The most expensive person to insure (and greatest risk in the eyes of a lender) is a young, white male. Your insurance is higher, which means your monthly obligations are higher, increasing your DTI ratios.
My questions for you:
1. Do you have a job? If so, how long have you had this job and what is your gross pay?
2. Why are you considering such an expensive car loan on such a limited credit history?
3. Do you live at home / rent / own? What are your monthly bills total up to?
All of these questions will help determine if a car loan of that nature is in your future. Back to your original question, taking out a secured loan would increase your credit mix, but would also add another new trade line, another inquiry when you already have too many, and would lower your already low AAoA. I wouldn't do it just to fill that whole just yet.
Starting Score: 627 EQ, 621 TU - 11/15/08You are going to have an issue with that income and that rent. Most car lenders are not going to go over 50% DTI. Your paying $1,200 in rent alone and only make $2,500 gross/month, so you are at 48% before even considering car insurance (which will not be $40 a month on a $30k car), utilities, gas, food, etc. Although your cell phone bills wont be factored into DTI, any credit card minimum payments, student loans, personal loans, etc. will if they are included on your credit report.
Having $8k down will definitely help you get a loan, but I think you will find it very difficult to find a lender (without a co-signer) that will loan $20k+ to a DTI over 50%, with a thin credit file and no previous auto history. You're full rent is considered (even though you live with your girlfriend) because you are both responsible and there's no guarentee she may not up and leave 3 months down the road. With that low of an income, you may want to reconsider the range of car you are considering. Typically buying a car the same amount as your yearly income is a very bad idea.
