Struan,
Just so you know, if it’s anything like the US, the dealer will rake you over the coals with poor terms and a high interest rate as compared to your local banker.
FWIW I’ve always been told to never get a loan for something that depreciates.
BTW if you’ve always been paying off your bills on time, you may actually have next to no credit record.
I agree with the others about getting your credit report.
Have you tried asking why you’ve been refused? Maybe they’ve done a search on your address and found that some deadbeat lived there. Maybe you share a name with a fraudster?
Thanks for fighting my ignorance.
Oh good god yes, but if you really need a car your credit rating isn’t a barrier.
I have found in the past that a little work up front helps a lot in these situations. I have found that the terms a rates get much much better when you tell the dealer that they need to do better than the loan you can get from your bank. The last time I purchased a car the interest rate magically dropped in half. So that the dealer was offering a better deal than the bank.
Bosda Di’Chi of Tricor you really should see what the online banks can do for you.
Every payment you make on your credit card bills goes on your credit record. They are especially interested in the timeliness of each one.
If you decide to get a dealer loan for a car, you can also refinance that loan at your bank or credit union later, usually for a lower rate, unless the car you’re buying is over 5 (or so) years old.
“Never borrow money to buy a depreciating asset”
Yeah to that.
I struggled with a bad credit rating for a while. And, I was broke so no wonder. Work off debts, and maybe even save $5 a week or something at the same time. Even $50 a month is $600 a year - the important thing is to get into the habit, because that’s what it is a habit. A lot of people, not just banks - they don’t loan money to people who need it, so to speak. “Cosigning” really doesn’t mean what it sounds like. Guess who is on the hook if you default? Your dad, not you.
Now that sounds bad, but it really isn’t. Say I have $500 in a savings account. Or, I own 500 shares of SDMB stock, matured savings bonds - well they aren’t pledgeable, but still - just examples of stuff that can be pledged as collateral that a bank is willing to lend against. Anyone can work towards a good credit rating. Buying and paying off a car is a great way in fact, and student loans, revolving charge cards, etc.
But it’s smarter to have saved enough money to buy the car first, and then borrow the money if interest rates are favorable. You save money because you can negotiate the price of the car (or anything else) very close. It puts the buyer in a position of strength versus that “hat in hand” - if they are loaning you the full amount, why would they give you a deal?
There is a lot of information about credit ratings out there but it’s really exhilarating to watch the power of what a credit rating can do if used responsibly.
Haven’t tried the dealer yet.
And Dad was saying that he was going to “help” me, by talking about me at the bank.
Hm. Dad’s mouth runs like jelly. Maybe…
The dealer almost certainly will give you this Loan unless there is something not being said here – worst case is his interest rate will be higher - but he wants to get you in the car.
I am howver disturbed by this treatment at the banks – most banks in the US are regulated to some extent by the FDIC and local laws there are Laws about Fair Lending - a guy with *no *credit history does not equal bad credit history. I know I don’t have all the facts – but this doesn’t seem right and you may want to consider pursing it in some way.
What do you mean nobody will talk to you? Go into the bank ask a teller or someone about getting a loan and they will direct you to the person you need to talk to, they will get your information and tell you if they can approve you for a loan.
Yeah, you have to explain this to us. There has to be something you’re not telling us. If you have had a credit card for 10 years, paid it off in full every month, and have 15 years of employment, you should have pretty much a spotless credit rating. I have serious delinquencies from four years ago (3 missed payments of 120+ days) and I have a rating in the mid-700s, with more credit/loan offers than I know what to do with.
We must be missing some key information here.
I’ve gone in, asked about loan officers, went to talk to one, & then, the loan officer just…stalls.
And won’t discuss the loan. Or offer one.
Is this at the same bank that you personally use? Did you try more than one bank?
This whole thing sounds funny to me. Your dad talks about you at the bank? Too whom? About what? If the two of you go in together and want to enter a contract with the bank together, that’s one thing. Just idle gossip over the counter? “Give son a loan – he’s good for it.” I just cannot imagine a bank doing business this way.
In the United States, anyone who requests credit from a lending institution MUST be given an application. That’s not a guideline. That’s the law. MUST. The application then must be considered. If the loan is denied, the lending institution MUST provide a reason. The reason can be as vague as “Unfavorable information provided by xx credit reporting agency.” The reason must include a way to contact the credit reporting agency.
Again, while a favorable first impression is always helpful, it cannot be used to make a credit decision. If you ask for a loan and they don’t let you apply, that is a violation of the law. Period.
My credit is fine now, but I have had poor credit in the past. I have been denied loans and credit cards and cell phones. I have never been treated in the way you describe.
Maybe the loan officers are still steamed about that little misunderstanding with the Duchy of Grand Fenwick 48 years ago.
How does this happen? What do you do? Are you both just sitting there staring at each other? Does your name come up on some most wanted list? Are you in the country illegally?
Now, I live in the South. I live in a small Texas town. Sometimes things happen that simply shouldn’t happen in the twenty-first century (or really any century, for that matter). However, sometimes they do.
Are you a member of a minority group? Does your community have a history of animosity toward this minority group? In other words, is racism at play here? If so, a whole 'nuther thing is going on.
You aren’t turning up at the bank wearing a Charles Manson T-shirt and carrying a bloody axe are you? Because otherwise there is some reason why they are turning away your business you aren’t telling us about.
If there is a reason, I’m baffled.
I simply don’t know.
- Have you been to multiple banks?
- Have you reviewed your credit record at http://annualcreditreport.com? Is everything in order?
- Have you asked the loan officer why you have been denied for a loan? They should be able to tell you what to do or what to go to be able to secure financing on a loan?
Really. Ask the loan officer. It’s not a big secret why you’ve been rejected. When I got rejected for a credit card years back I was told exactly why I was being rejected. Like I said, if the information is exactly as reported, there is no reason I could see for being denied a loan.