Denied for a car loan. . . any tips/advice?
I am 23 years old, in the military (about to attend OCS), currently making $33,000 total a year. I have good credit because I applied for a new cell phone recently and was approved for 2 lines with no down payment (i worked in selling phones and know if you have bad credit you don’t get this kind of deal).
I applied for a $15,000 loan to get a new car. I was denied for insufficient credit history, so I took this and got a co-signer. I got my mother and then my grandmother. . . being denied both times before I was told it was due to my insufficient credit history. My grandmother has a PERFECT credit history, to the point that the banker told us over the phone she would probably qualify for a 6 figure loan!
So my questions are these:
1) What is the purpose of having a co-signer if regardless of their credit, they won’t give you a loan?
2) Do you have any tips for me to get an auto loan? Should I go to a credit union instead of a bank? Should I speak to them in person instead of doing it over the internet/phone?
3) Can I build a case to show the bank that the can trust me? Should I show how much money I make, how I pay my bills responsibly, and possibly put collateral on this loan?
Thanks in advance for ANY and all help you can give me. It would mean a lot!
EDIT: I don’t have any negatives, they told me that. It is just that I lack a credit history.
Also, I know its weird they would deny it with a cosigner. Isn’t that the purpose of a freaking co-signer?!? haha
And I need this car by the next week. I shopped around for 3 weeks, got an amazing deal with the dealer. I wasn’t expecting this, and neither was my family. . .
March 1st, 2010 at 9:14 pm
Weird ..they wouldnt give you a loan with a co-signer?
March 1st, 2010 at 9:50 pm
I had the same problem when I first started. The best way to establish a credit history fast is to get a couple of store cards and only charge single items (low cost) and pay them off each month. Have that for a few months and then try again. You already have a cellphone but those kind of accounts do not show up on your credit report. You should also request a free credit report using the denial letter they should have given you. You may have some errors on your credit report that could be contributing to the problem. Also right now having a larger down payment helps with approvals.
April 26th, 2010 at 5:14 pm
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