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Where can I go from here?

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Regular Contributor

Where can I go from here?

Hi all! Just posted in the auto credit seeking forum here about my recent decline for credit from Tesla Financial... which is disappointing to say the least. I was convinced I had good credit and hd been working up a strong portfoli of cards and sustainable debt. That I paid on a monthly basis in full. Alas, it seems it was all for not, as my Mercedes is dying and I couldnt get approved for a lease in my own name. 

 

So i'll put what I got out there and follow my MyFico friends advice. Where should I go now? How do I increase my ability to support this loan/lease/good credit. Maybe you could say im loosing faith.

 

Screen Shot 2020-06-15 at 1.04.39 AM.pngScreen Shot 2020-06-15 at 1.05.15 AM.png

 

UBS Visa Infinite $286,500 | American Express Platinum | American Express Blue Cash Preferred $2,000 | American Express Cash $2,000 | American Express Blue Business Plus $4,000 | Apple Card Mastercard $5,000 | Discover IT $3,750

FICO 8 scores 01/2020
EX-714
TU-701
EQ-756
41 REPLIES 41
Highlighted
Regular Contributor

TESLA LEASE REJECTED with good credit.

Hey guys! I applied for a tesla lease but was rejected for a silly reason. I'm new to buying cars with financing, and would love to learn what i should do to remedy this. Unfortunately my parents and I don't have a good financial relatioship. So I dont have a good way to cosign. But I have a succesful business... but they require me as a personal gurantor so I dont even have that option. 

 

I hold really high balances on my Amex and pay them off every month in full, so i thought that would be a good thing for my credit, but maybe not? 

 

Screen Shot 2020-06-15 at 12.37.19 AM.pngScreen Shot 2020-06-15 at 12.32.34 AM.png

UBS Visa Infinite $286,500 | American Express Platinum | American Express Blue Cash Preferred $2,000 | American Express Cash $2,000 | American Express Blue Business Plus $4,000 | Apple Card Mastercard $5,000 | Discover IT $3,750

FICO 8 scores 01/2020
EX-714
TU-701
EQ-756
Message 1 of 42
Highlighted
Established Contributor

Re: Where can I go from here?

Do you know what bureau they pulled? I can't really see you getting denied based on scores alone. I do remember another post of yours, aren't you self employed? That may be the hang up right there. A lot of banks give self employment a harder look than they do a regular 9-5. Sorry about your denial. Was a Tesla your only option that you were looking at?



Starting Fico Scores:November 2019

Current Fico Scores: September 2, 2020
Goal Scores: 700 across all three
Message 3 of 42
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Community Leader
Senior Contributor

Re: TESLA LEASE REJECTED with good credit.

Credit scores are not all they consider. Their denial reason is you have a "young file", only time will help with that.

 

I believe you are 20 correct? I remember you getting advice previously about letting your file age and as with this recent denial it's best to let your file and accounts age some.

EXP 758 TU 783 EQ 729
Message 4 of 42
Highlighted
Community Leader
Super Contributor

Re: Where can I go from here?

Do you have any installment loans?

If not, time to grab a secured loan.

Also, how old is your oldest tradeline?

Without knowing, I'm guessing your credit history is short?

 

The $37k reporting on the Amex, could also be a factor. Scaring the UWs off. Even though it's sustainable for you.

I'd put that on a hidden tradeline or at least the majority of it.

Only because of the current state of the economy.

 

Also Navy may finance your Tesla.

They are known to finance individuals at the beginning of their credit journey.


 

 



My most prized tradeline.
Message 5 of 42
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Super Contributor

Re: Where can I go from here?


@californiaboy935 wrote:

Hi all! Just posted in the auto credit seeking forum here about my recent decline for credit from Tesla Financial... which is disappointing to say the least. I was convinced I had good credit and hd been working up a strong portfoli of cards and sustainable debt. That I paid on a monthly basis in full. Alas, it seems it was all for not, as my Mercedes is dying and I couldnt get approved for a lease in my own name. 

 

So i'll put what I got out there and follow my MyFico friends advice. Where should I go now? How do I increase my ability to support this loan/lease/good credit. Maybe you could say im loosing faith.

 

Screen Shot 2020-06-15 at 1.04.39 AM.pngScreen Shot 2020-06-15 at 1.05.15 AM.png

 


The 3 things which jump out at me are (a) your $37k balance on an American Express card,  (b) the fact that you are a Navy Federal Credit Union member (If I were you I'd look to NFCU, not Tesla, for the car loan), and (c) you haven't told us what reason was given for the credit denial, which should give you a very strong clue as to what happened.


Total revolving limits 653000 (575000 reporting)

Message 6 of 42
Highlighted
Established Contributor

Re: TESLA LEASE REJECTED with good credit.

While running $266k through an AMEX card YTD may seem flashy to you, it's not always going to impress a lender (and in some cases could hurt - if those are business expenses, if I was you, I'd get them on separate business credit...)

You have a young/thin file. Have you ever had another loan that you've satisfied?

 

If your reported/verifiable income supports the spend that you depict, I would think you have a chance of getting a loan from a 3rd party institution. Especially one that you have a banking relationship with.  Truth be told, car loans are not really that hard to obtain if income/DTI/collateral all fall into specs. 

Personal Credit -
AMEX: Platinum, Gold, Blue Cash Preferred, Schwab Investor
PNC: Cash Rewards, Points
NFCU: Flaghship Rewards, Cash Rewards, More Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Store Cards: Target, Macy’s
AU Cards: Citi Rewards+

Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Message 7 of 42
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Established Contributor

Re: Where can I go from here?

What portion of the balance is the $37k? If it is a high proportion, any chance you might be able to shuffle that to be split between a few cards for at least one reporting period?

Otherwise, agree with above about checking with your credit union for financing options first.
as of 10/13/20
Current Cards:
Message 8 of 42
Highlighted
Valued Contributor

Re: TESLA LEASE REJECTED with good credit.


@californiaboy935 wrote:

Hey guys! I applied for a tesla lease but was rejected for a silly reason. I'm new to buying cars with financing, and would love to learn what i should do to remedy this. Unfortunately my parents and I don't have a good financial relatioship. So I dont have a good way to cosign. But I have a succesful business... but they require me as a personal gurantor so I dont even have that option. 

 

I hold really high balances on my Amex and pay them off every month in full, so i thought that would be a good thing for my credit, but maybe not? 

 

Screen Shot 2020-06-15 at 12.37.19 AM.pngScreen Shot 2020-06-15 at 12.32.34 AM.png


It says right there. 1 reason. Insufficient comparable credit experience.

 

You need a prior installment loan. Open an SSL or get a cosigner. That will show you pay back a loan on a monthly basis.

Message 9 of 42
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Moderator

Re: TESLA LEASE REJECTED with good credit.

@californiaboy935  I've merged your two threads dealing with identical issue. 

Please avoid cross -posting, it creates confusion and redundant answers. 

Message 10 of 42
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