So I noticed something working at an auto loan finance company...

[Angrymarshmello]

The people with the worst credit want the biggest loans. I just had a person with a FICO of 521 ask for a $45,000 loan. I almost spit my water all over my monitor. Her record was filled with stuff that was just ridiculous. I'd be surprised if she managed to get $5,000.

Surprisingly though, there are quite a few people with horrible scores making quite a lot of money ($70K+ a year) asking for loans. People with that much money should be smart enough to know how to spend it.

Just my observation for the day

 

[vi edit]

People who are stupid with their money ask to do stupid things with money.

 

[boyRacer]

the ones with good scores are probably afraid of taking out a huge amount...

 

[vi edit]

Originally posted by: boyRacer
the ones with good scores are probably afraid of taking out a huge amount...

Or never have a need to. They either buy within their means, or are responsible with their money and finance the lowest amount possible.

 

[Zugzwang152]

how can someone upper-class like that be making poor money decisions? boggles the mind.

 

[boyRacer]

Originally posted by: Zugzwang152
how can someone upper-class like that be making poor money decisions? boggles the mind.

probably becase they think they have it covered.

 

[Angrymarshmello]

Originally posted by: boyRacer

Originally posted by: Zugzwang152
how can someone upper-class like that be making poor money decisions? boggles the mind.

probably becase they think they have it covered.

That's very true. After the IT bust in 00/01, so many IT people who were used to high paying jobs were whining about how they couldn't afford to pay off their BMWs, Lexus', and $600,000 houses.

 

[RossMAN]

I have good solid credit and only apply for car loan's within my means.

If I get approved for a $25,000 sedan I'm happy.

 

[RossGr]

Originally posted by: vi_edit

Originally posted by: boyRacer
the ones with good scores are probably afraid of taking out a huge amount...

Or never have a need to. They either buy within their means, or are responsible with their money and finance the lowest amount possible.

Actually this type of person may not have a very good credit rating. A good credit rating comes from using credit and then making the payments. The people who can carry a large credit debt and continue to make payments are the bread and butter of the credit industry, these people have high ratings. If you don't use credit or fail to keep up with the payments you will have a poor rating.

 

[ElFenix]

Originally posted by: Angrymarshmello
The people with the worst credit want the biggest loans. I just had a person with a FICO of 521 ask for a $45,000 loan. I almost spit my water all over my monitor. Her record was filled with stuff that was just ridiculous. I'd be surprised if she managed to get $5,000.

Surprisingly though, there are quite a few people with horrible scores making quite a lot of money ($70K+ a year) asking for loans. People with that much money should be smart enough to know how to spend it.

Just my observation for the day

well why shouldn't she, shes already got $45,000 outstanding credit card bills, why not $45,000 auto loan!

 

[vi edit]

Actually this type of person may not have a very good credit rating. A good credit rating comes from using credit and then making the payments. The people who can carry a large credit debt and continue to make payments are the bread and butter of the credit industry, these people have high ratings. If you don't use credit or fail to keep up with the payments you will have a poor rating.

I've got very good credit, around 760 or so, and I've obtained this by taking reasonable loans. Loans around $10,000-$15,000 and paying them on time every time. Sure I could have afforded more, and was alloted much higher credit lines, but never chose to indulge in it.

Yes, I could have taken out a $35,000 car loan, and could have technically afforded it, but never had the need to.

My parents have credit above 800 and have never taken a loan out over $20,000 with the exception of a mortgage. And they don't even make much money a year.

You don't have to over exceed yourself to get good credit.