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Good Credit but still cant get an auto loan

AbsoluteZeroAbsoluteZero The new film by Quentin KoopantinoRegistered User regular
edited March 2010 in Help / Advice Forum
So I've found a nice used car and gotten a purchase agreement for it, a pretty good deal too. The dealer has agreed to hang on to the vehicle for a while until I secure a loan (probably a week at best). I need a loan of about $8700.

I've so far applied at two places: US Bank and Wells Fargo.

Despite the fact that my FICO is 713 and my credit is spotless, both places have turned me down. The reason they give: I haven't had an auto loan before.

So despite that the fact that I have been making around $400/mo payments on my numerous student loans for probably 2 years now and the fact that I have paid in full my credit cards every single month for 4 years and have never, ever gone past due on anything.... it seems they don't think I could handle repaying a $8700 secured debt.

The only remedy I can think of is to get a co-signer... but there is literally no one who would co-sign for me that has decent credit. None that I can think of, anyways.

I really need/want this car, and I'm running out of time. Any thoughts? Anyone know of a lender that would be more friendly to my needs?

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AbsoluteZero on

Posts

  • RUNN1NGMANRUNN1NGMAN Registered User regular
    edited March 2010
    Have you already applied for one where you do your personal banking? In the alternative, is there anyone who would be willing to cosign the loan? A parent perhaps? My dad cosigned my first car loan.

    RUNN1NGMAN on
  • AbsoluteZeroAbsoluteZero The new film by Quentin Koopantino Registered User regular
    edited March 2010
    I applied at the bank where I do my persona banking, and I also work at said bank, believe it or not. No go on any cosigners, not even my family. Either they won't do it or their credit is shot.

    AbsoluteZero on
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  • Zul the ConquerorZul the Conqueror Registered User regular
    edited March 2010
    That sounds weird. I don't know much about loans (makes me wonder if I'll be able to get a car loan when the time comes.) You could check out Lending Club or Prosper and see if you can get a peer-to-peer loan. If they operate in your state, that is.

    Zul the Conqueror on
  • ceresceres When the last moon is cast over the last star of morning And the future has past without even a last desperate warningRegistered User, Moderator mod
    edited March 2010
    It sounds funny to me, and if I were you, if you haven't done so already I'd get a recent, full credit report just to check and make sure nothing's up.

    ceres on
    And it seems like all is dying, and would leave the world to mourn
  • bowenbowen How you doin'? Registered User regular
    edited March 2010
    Did you put a down payment on the car? Even if it's $100, most places won't loan without a down payment these days, unless you're paying through the ass in interest.

    bowen on
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  • DeadfallDeadfall Registered User regular
    edited March 2010
    This might be a silly question, but will the car dealer finance it for you? The last time I bought a car the dealer couldn't wait to offer me credit. They'll offer you an absurd interest rate, BUT, if you have your credit score in-hand and tell them that your bank has offered you a good rate, they will most likely "talk with their boss" and get you a good deal.

    For example, with my wife's car, we had her and my credit scores in hand (771 and 750 respectively) and told our dealer that our bank offered us 6% and we wanted to see what the dealer could do. He had to "talk to his boss" and got us a 5.5% loan.

    I'm not an expert on car dealers by any means, but it worked for us.

    Deadfall on
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  • Blake TBlake T Registered User regular
    edited March 2010
    Alternatively can you get it financed as a personal loan?

    Or even talk to the bank manager! I mean you work there.

    Blake T on
  • badpoetbadpoet Registered User regular
    edited March 2010
    Go to a credit union and join up. Apply for the loan at the same time.

    Most credit unions are vastly superior to banks. Their rates are usually much better and they actually like to have you come in. It's a completely different atmosphere than a bank.

    What city are you in?

    badpoet on
  • muninnmuninn Registered User regular
    edited March 2010
    Yeah I have been in similar situation as you. They call it a "light" credit score. It was a pain but I was able to convince them to give me the loan. If that fails, you can bring a co-signer to the table, and then you shouldnt have any more problems.

    muninn on
  • DocDoc Registered User, ClubPA regular
    edited March 2010
    I left Wells Fargo over this exact issue. I had good credit and I'd been a customer with them for over 5 years, but they wouldn't give me a car loan.

    I switched to a credit union (Boeing Employees Credit Union, available to all residents of Washington state, despite the name) and they gave me a loan right away.

    Credit unions suck less than banks, use them if you can.

    Doc on
  • AbsoluteZeroAbsoluteZero The new film by Quentin Koopantino Registered User regular
    edited March 2010
    Thank you for the advice, everyone.

    I did about a month ago get my TransUnion credit report (though I didn't get my FICO because for whatever reason that costs money) and saw absolutely nothing wrong with it. Never have had a single missed/late payment in my life and my credit reflects that.

    It truly seems to be that I can not get an auto loan for the simple fact that I have never had an auto loan before.

    I will try some more places and give credit unions a go, but I believe I'm going to have to face very real probability that I wont get this figured out in time to buy the car in question. At least perhaps I can get pre-approved somewhere and go car shopping.

    Or on the other hand I could just hope the clunker I have now keeps running and save up to purchase with cash.

    AbsoluteZero on
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  • mcdermottmcdermott Registered User regular
    edited March 2010
    Thank you for the advice, everyone.

    I did about a month ago get my TransUnion credit report (though I didn't get my FICO because for whatever reason that costs money) and saw absolutely nothing wrong with it. Never have had a single missed/late payment in my life and my credit reflects that.

    It truly seems to be that I can not get an auto loan for the simple fact that I have never had an auto loan before.

    I will try some more places and give credit unions a go, but I believe I'm going to have to face very real probability that I wont get this figured out in time to buy the car in question. At least perhaps I can get pre-approved somewhere and go car shopping.

    Or on the other hand I could just hope the clunker I have now keeps running and save up to purchase with cash.

    I had trouble getting an auto loan with credit history similar to yours.

    I recently was able to secure an auto loan, but that was with like nine years of perfect credit (well, probably only back seven right?) and like $90K of combined income between the two of us. And our rate still wasn't quite what I thought it should be (but we only had like $500 down).

    mcdermott on
  • ceresceres When the last moon is cast over the last star of morning And the future has past without even a last desperate warningRegistered User, Moderator mod
    edited March 2010
    Citadel Credit Union is pretty damn awesome, and they are now open to the general public. You still have to apply, and they will run a credit check, but it sounds like you shouldn't have any problems. They have loans for just about everything you can imagine, and their rates aren't bad. If you bring them an offer you have for an interest rate, they'll be pretty up-front about whether or not they can beat it. If your current bank is refusing to give you a loan, they can almost certainly beat THAT. :P

    ceres on
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  • TejsTejs Registered User regular
    edited March 2010
    What kind of accounts do you have with your bank? Did you get the student loans through them, or have upgraded accounts?

    If you're not carrying a high balance with your bank, you don't have your current loans with them, and you've never had an auto loan with them, I can see where they might be reticent to give you a secured loan.

    Tejs on
  • MushroomStickMushroomStick Registered User regular
    edited March 2010
    .

    I did about a month ago get my TransUnion credit report (though I didn't get my FICO because for whatever reason that costs money) and saw absolutely nothing wrong with it.

    Is this where you're getting the 713 fico score from? I ask because I believe Transunion uses a different scale that would put your actual fico somewhere in the 600s. When I bought my car last year, my fico was something like 780 but Transunion said 820-something.

    MushroomStick on
  • SheepSheep Registered User, __BANNED USERS regular
    edited March 2010
    You'll have trouble finding a loan simply due to the economy right now. Last time I bought a car the dealer pretty much handled all of the loan shit for me. Got it from Chase bank. They tried to screw me with a 60 month 250 a month plan and I talked them down to 48 months at 270.

    Sheep on
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  • SkyCaptainSkyCaptain Registered User regular
    edited March 2010
    .

    I did about a month ago get my TransUnion credit report (though I didn't get my FICO because for whatever reason that costs money) and saw absolutely nothing wrong with it.

    Is this where you're getting the 713 fico score from? I ask because I believe Transunion uses a different scale that would put your actual fico somewhere in the 600s. When I bought my car last year, my fico was something like 780 but Transunion said 820-something.

    Most places give a loan based on the average or middle score. When I bought a car a year and a half ago, I just went to the dealer and told them I had X amount for a down payment, I didn't want to pay more than Y amount per month, and test drove the car I wanted to purchase. Twenty-four hours later, I went back and signed the paperwork and had a new car.

    SkyCaptain on
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  • BeltaineBeltaine BOO BOO DOO DE DOORegistered User regular
    edited March 2010
    Keep shopping around. There are plenty of places out there that will make a loan for you. Gotta be more than those 2 banks in town.

    If this is a small dealership, you probably won't have much luck through the dealer there, but if all else fails, hit up the finance department at one or more of the big new-car dealerships. They may look at you funny for not buying one of their cars, but they should be able to find you a loan. They usually have multiple sources for loans they can check at once.

    Beltaine on
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  • King KongKing Kong Registered User regular
    edited March 2010
    Also keep in mind at it is easier to get loan approval for a new car vs a used car. When I bought my last car nobody would loan me money for the used car I wanted but when I bit the bullet and decided on something new I had loan approvals coming outta my rear.

    King Kong on
  • strebaliciousstrebalicious Registered User regular
    edited March 2010
    I'm on the side of Credit Unions. Been using them ever since I got my first paycheck 13 years ago. The one I use back at home recently remodeled their branches so that the teller takes you up to a computer and shows you exactly what they are seeing in regards to your account. Totally awesome.

    But yes, credit unions tend to be fairly decent on their loan rates, savings rates, etc. I've never had a problem with Navy Federal Credit Union, but I've heard some people complain about small local type credit unions.

    strebalicious on
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  • KidDynamiteKidDynamite Registered User
    edited March 2010
    I didn't see it mentioned, but how old are you? When I was trying to get my first car I went through the same thing. (But I had a credit score of 680 at the time) After talking to the banks, and one of my friends, it wasn't that my score was bad, it was more that I didn't have enough credit history. I was too young.

    I ended up getting a co-signer, and it worked out great. Now I was able to get a home loan on my own credit.

    KidDynamite on
  • FeralFeral MEMETICHAZARD along with you if I get drunk well I know I'm gonna be gonna be the man whoRegistered User regular
    edited March 2010
    Doc wrote: »
    I left Wells Fargo over this exact issue. I had good credit and I'd been a customer with them for over 5 years, but they wouldn't give me a car loan.

    I switched to a credit union (Boeing Employees Credit Union, available to all residents of Washington state, despite the name) and they gave me a loan right away.

    Credit unions suck less than banks, use them if you can.

    Exactly. Not all financial institutions are the same on this particular issue. Some banks are more willing to give a particular type of loan than other banks. My local credit union loves to give car loans. Just call around.

    Feral on
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  • AbsoluteZeroAbsoluteZero The new film by Quentin Koopantino Registered User regular
    edited March 2010
    .

    I did about a month ago get my TransUnion credit report (though I didn't get my FICO because for whatever reason that costs money) and saw absolutely nothing wrong with it.

    Is this where you're getting the 713 fico score from? I ask because I believe Transunion uses a different scale that would put your actual fico somewhere in the 600s. When I bought my car last year, my fico was something like 780 but Transunion said 820-something.

    The banker I worked with let me see my FICO right after he pulled it, that's where I got the 713 score.

    I have however officially given up and let the car go. I'm going to save up a couple thousand more dollars, hunt around for a co-signer, and try again in a couple months. Suppose I should try to get pre-approved before I go car shopping again.

    Thanks again for the advice, everybody

    AbsoluteZero on
    cs6f034fsffl.jpg
  • GiantRoboGiantRobo Registered User
    edited March 2010
    ceres wrote: »
    Citadel Credit Union is pretty damn awesome, and they are now open to the general public. You still have to apply, and they will run a credit check, but it sounds like you shouldn't have any problems. They have loans for just about everything you can imagine, and their rates aren't bad. If you bring them an offer you have for an interest rate, they'll be pretty up-front about whether or not they can beat it. If your current bank is refusing to give you a loan, they can almost certainly beat THAT. :P
    Citadel is pretty good, if you can somehow get a hold of the Wawa credit union, they're pretty awesome too.

    GiantRobo on
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  • FiggyFiggy Registered User regular
    edited March 2010
    They could just be lying to you and are mainly concerned with your income. The bank won't lend you money if the loan repayments are over x % of what you bring in.

    Your employer may not want to tell you that's the reason, though.

    Figgy on
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  • jungleroomxjungleroomx Condoleeza Rice is nice But I prefer a-roniRegistered User regular
    edited March 2010
    I have jacked up credit, but the dealer I was at is giving me a hell of a good rate after telling them I was doing a $4000 down payment.

    jungleroomx on
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This discussion has been closed.