good credit, decent income = denied car loan?!

Discussion in 'OT Driven' started by p0kerface, Aug 22, 2008.

  1. p0kerface

    p0kerface New Member

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    I just got my new job which pays much better than the previous one.
    I have a side job for a lil extra income. I have a good credit score. Got denied by 3 lending companies mainly cause my new job is a new job. Are there other options or wat?
     
  2. rufraider03

    rufraider03 New Member

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    where you want to be
    try a local credit union. if you are a member you will have a better chance.
     
  3. pLaYIstIcPimP

    pLaYIstIcPimP New Member

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    what do you consider decent credit. what does your DEBT look like. Got to understand the credit crunch we are in right now.
     
  4. vudoodoodoo

    vudoodoodoo New Member

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    New job is a negative.
    Try credit union or something other than the car dealer. AAA has pretty good rates.
     
  5. Raider007

    Raider007 om nom nom nom

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    the new job is what's probably hurting you... how long were you at your old job?
     
  6. deusexaethera

    deusexaethera OT Supporter

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    What are your debt:income and debt:asset ratios?
     
  7. p0kerface

    p0kerface New Member

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    I have no debt! all CC's are paid for, no school loans, no vehicle payments to be made. The 1st place i applied at was a credit union, i have a savings account there and they told me to go fuck myself. Also my credit score is 780 last i checked (couple months ago). been at my current job for about 2 months, it's full time. was at my last job for 2 n a half years.


    the only thing that hurts me is that the job is new (yet stable) and the car loan is about 2/3 my yearly income. with no debt it's very managable
     
  8. deusexaethera

    deusexaethera OT Supporter

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    Tell the credit union if they don't want to open a loan for you, you'll take your business elsewhere. If they still say no, walk over to the teller and tell them to cash out your account.
     
  9. Mike00

    Mike00 New Member

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    That's probably the issue. How much is your gross income and how much is the loan?
     
  10. Raider007

    Raider007 om nom nom nom

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    woah... have you thought this through? maybe the bank is actually saving your ass...
     
  11. deusexaethera

    deusexaethera OT Supporter

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    That's one expensive car right there. I'm only on my first job and I'd be buying a Lexus if I spent 2/3 of a year's salary on a car.

    If you have no debt, save every red cent you can for a year and use that to offset the loan amount. Your beater can last through another winter.
     
  12. Toxicity

    Toxicity New Member

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    My av is so small you can't see it!
    That's too much for a car bro. You still live at home?
     
  13. deusexaethera

    deusexaethera OT Supporter

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    The rule is "don't buy what you can't afford to replace", yeah?
     
  14. Captain Jack

    Captain Jack I know I know nothing

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    this is a joke, right?
     
  15. planeh

    planeh Guest

    This is why, you don't have any secure loans
    How is it so high with NO credit, no secured loans and no history with any lender longer than a couple years?
    Length of employment shouldn't really be that big of a deal. I bought a car, was approved for a loan and they never once asked me how long I was employed.


    Thats not wise man. Thats probably a reason that they aren't approving you. Debt to income ratio is out of whack and any smart lender won't approve, especially today.

    I've been working in the credit business for the past 8 years and currently own a credit repair company. I get these questions everyday.

    Good luck :)
     
  16. deusexaethera

    deusexaethera OT Supporter

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    The only way to get a credit score that high is to have credit that you never use. It's stupid, but as soon as you start using lines of credit for anything, they automatically assume you're a riskier customer and they drop your score.

    What really kills me is your credit score gets whacked each time you check it. Just looking at it is a bad thing. That's what finally convinced me it's just a goddamned racket.
     
  17. blackchick

    blackchick New Member

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    that shit has always been immensely irritating to me.
     
  18. redfred18t

    redfred18t New Member

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    I hate it too but it is there for a reason.

    If you have to apply for a loan, but do it at 20 different banks, than there is definitely something wrong
     
  19. Shayes

    Shayes OT Supporter

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    yea man, maybe 2/3 of your yearly salary is not worth a car right now:dunno:
     
  20. p0kerface

    p0kerface New Member

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    when i was 24 i had a credit card for about 5 years and paid it off each month. i assume that's what got me the high score (820 at the time).

    too much to explain on an off topic forum but yes i've thought this through and i know it's not the smartest thing but it's not the dumbest either. i've got enough for a 10% down and if i really want i can make it 15% if i sell some toys and that's without dipping into my emergency funds.

    so it's the income:loan ratio that's holding me back? i'm not bad with my money so i never thought my ratio would be such a red flag. how much difference would a co-signer make?
     
  21. vudoodoodoo

    vudoodoodoo New Member

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    wtf car are you buying?
     
  22. deusexaethera

    deusexaethera OT Supporter

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    My guess is an Audi A3 or something along those lines. A GTi would give similar performance at a much lower price, though of course it wouldn't have the same bling factor.
     
  23. P07r0457

    P07r0457 New Member

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    Wrong. You can check it yourself without any "dings". Only "hard" checks will reduce your score -- and that only occurs when you're applying for credit. The purpose is so that an individual that is shopping at lots of places is obviously getting turned down, so by further reducing the score, it helps protect lenders.

    Furthermore, having a bunch of high-limit credit cards with no usage can also be a red flag. Banks don't want you to one-day decide to go for a big shopping-spree and skip out on the bill.

    It's a delicate balancing game between # of accts open, total credit limits, credit utilization, average acct durration, and ultimately debt:income ratio.
     
  24. P07r0457

    P07r0457 New Member

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    wouldn't make any difference except that you might be able to claim their income, as well.

    Ultimately, you're probably not going to get a bank to approve much more than 20% of your income.

    For example, make $40k a year and 20% of monthly income would be ~$600 which means you could finance max of $30k, imo.
     
  25. vudoodoodoo

    vudoodoodoo New Member

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    GTI is a better deal. Plus they have 0% financing up to 72 months on the 08's.
     

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