Turned down for auto loan.....you gotta be joking Mr . Banker

[Anonymous]

After paying cash for all of  the vehicles in my life I decided to "splurge " a bit and go for a  decent newer vehicle.( Pick up)

I applied over the phone with my personal bank for an auto loan and was turned down!

This is a bank I have my checking, savings, CD's,  and a CC-card accounts with by the way. 10 years.

Only reason I was given was due to not enough credit accounts. WTF?

Someone said I need to have 5 lines to look good....Come on!

I thought over the years I was doing the right things when it came to credit and managing it.

I live very frugal.

Pay with cash or bank debit/credit.

No more than 2 CC cards ( Am-Ex & Visa)

No major store/retail credit cards at all.

A little about me:

FICO score 798

2 credit cards with 5 year history---Used monthly, paid off each month and no current balance.

A 1% Debt to Credit Ratio.

No other loans, judgements, etc.

Have a great job with very good take home pay and yet they look at me like Im a deadbeat?

I'm looking to buy a house and get a mortage in the next 2 years and this is not good if they think I of all people are a credit risk for a measly auto loan.

Any ideas?

Try another lending institution?

[happy0510]

Hi Vito,

This sounds like they were giving you their "internal" requirements.  I would approve you!! Lol

I would say try another lender.  But first, let them know exactly what is in your file and what

happened with your bank.

Happy

[Anonymous]

I'm in the same exact situation, I'm considering treating myself to a 'newer' auto in a couple months, but like you, I've only paid cash for used autos for the past 10 years.  I have a pretty good FICO score, but only 3 credit cards active, with the oldest being 6 years old.  The last time I financed an auto was 9 years ago.  I havent applied for the loan yet, as I want to get my utilization down to 15% before I apply, so I can get a better loan rate with Tier 1 FICO... this is giving my second guesses whether I will get approved or not.

Which lender was it?  Was it a loan app reviewed by an actual person, or an entirely automated process? 

[Anonymous]

Mifune:

I did this over the phone with some hourly worker who was just punching in info on a keyboard and then using the in house software that must have "kicked me out."

I think some actual face time with a live human is in order.

[Anonymous]

Wow, that's just crazy.  What a bunch of maroons.

I bet if you walk down the street to the next bank, walk in and say, "Hi, I have a 798 FICO, here's my credit report, First Profit Bank up the street turned me down for a car loan.  I got X for a down payment and I want Y dollars.  Are you interested?", they would say, "Why, Mr. Our-Newest-Customer please have a seat.  Can I get you anything to drink while we discuss your auto loan?"

Or try a credit union.

[-RED]

Go to a Credit Union where the employees are well trained, and where rates are were they should be!

[Anonymous]

Yeah, I'm going to a credit union in person when I get my auto loan.  Much friendlier financing terms and often with many perks such as GAP coverage.  Since my employer is the assignee that performs collections for the credit union, i'm hoping to be in and out (unless they say it's a conflict of interest...we'll see).

[Jaymes]

You'd probably be best having the dealer arrange financing.  I believe some brands are offering close to zero percent financing for people with scores like yours.

[Anonymous]

Go to the bank in person.   Be prepared to close all your accounts terminate your relationship with that bank if they continue to say no.

Afterwards, when you have arranged financing through someone else, park your new truck on the street right in front of the bank and put up a sign on it that says "Bank X doesn't give a **bleep** about you".

[Anonymous]

blackB:

I thought about the same thing.

I am fully prepared to do just that.....minus the sign thing.

At least terminate my accounts with them.

Plenty of banks out there who would take my business.