Where can I get qualified for a loan... for sure?

[Descartes]

I'm 20, and have very little previous credit history. I'm having a horrible time trying to qualify for a loan on this car. I'm putting down $4000 in cash, $4500 in my trade-in for a car that costs $18,900, and no one will qualify me.

Anything I can do? I'm willing to accept a high interest rate just to build my credit. Any ideas appreciated...

 

[rahvin]

Did you talk to a credit union? They will generally loan money to anyone that has a job.

 

[warcleric]

hahahaha there are 4001 car dealers in this area that would do it for less than 14% interest with that money down. I cant believe you are having a hard time.

 

[Taz4158]

That's a good downstroke. You shouldn't have a problem. How long have you been on the job?

 

[Descartes]

I've been on my present job for 6 months, same field for years, and make about over 6 times annually the amount they're loaning me, yet, nothing.

Perhaps the 6 months at my present job is killing me, but my history of employment is good. I didn't think I would have any problems.... guess I was quite surprised.

 

[StageLeft]

So, you're trying to borrow effectively $10k from them for a car and you make $60k/year? Unless your previous credit history is _very bad_ - what little you have - there shouldn't be a problem. Go to a bank and get a credit line or go elsewhere.

6 months shouldn't be a problem I know many people making less than that with no credit history whatsoever who get qualified for more than $10k

 

[kranky]

You should have NO problem qualifying. What happened? Did you fill out an application for financing and the dealer turned you down? Did they say it was because of something in your credit record?

 

[Cable God]

I agree Warcleric. BHC can get almost anyone financed with a little down from what I've heard and saw. I just stay away from them though.

 

[Descartes]

Thing is, I know people who have a bankruptcy on their credit, make less than I do, and still qualify!

I don't get it. I'm also concerned w/ the adverse effects of calling banks to see what if I can qualify elsewhere. The more places I try, the worse my credit gets because of all the inquiries on the report.

Bah.

 

[StageLeft]

Ask the dealership what the problem is. If I was making $60k and wanted $10k at your age (ie, you don't have a family to care for) and there was nothing negative on my credit history and they didn't want to give a loan then I'd laugh in their face and tell them they really must not want your business. Go to another dealership!

 

[Descartes]

I'd like to go to another dealership, but they're limited around here (I need a certified used), and I love this car...

I'm going to start checking my credit report more often. I know they say things can show up that can adversely affect your credit rating that you're not aware of, but damn.

We'll see... the dealer is sending out for "special financing" later on tomorrow, then it's off to the banks for me!

 

[kranky]

Are you saying you've been turned down by more than one dealer? Or just the one with the car you want? Maybe that dealer is making up a story in order to charge you more interest on the loan.

 

[Descartes]

I've just been turned down by this dealer so far. I'd go elsewhere, but there are few "certified" dealers (I want the 100k power-train warranty) around, and I want this car. Supposedly Wells Fargo is supposed to call me today and ask me a few questions... why, I don't know.

They did tell me that the main hindrances in my approval were my age, and my "limited job time." I did switch jobs about 7 months ago, but have been consistently employed, in the same job position, 2 years prior.

Eh well. We'll see.

 

[RossMAN]

If worse comes to worse try a financial company like American General Finance, Beneficial, The Associates, etc. These places usually will finance anyone but the down side is you'll be paying a high rate. At least 1) You will get the card and 2) Establish credit. Then after 18 months of making your monthly payments on time refinance and get a better rate with a traditional bank or credit union.