Not nessesarily. I get employee bank loan rates (my SO works for a company owned by a bank, so we get the employee discount) and the rate they offered me was OK, but hwaaay over what the dealer offered me with my “exceptional credit”. Dealers offered me 0% to 2.9%, the bank wanted around 6%. Hell, at Edmunds you can get a loan for as low as 5.89%.
**Quartz ***“FWIW I’ve always been told to never get a loan for something that depreciates.”
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False. Make sure the loan is for a term no more than 1/2 the expected life. For a car, that is 5-10 years (depending on make, model and warranty) thus the loan should be for 2-5 years. Never get a 6 year loan for a car than might not survive 5 year, however! I suggest a 3-4 year loan is safe on any new decent car, 5 years is a maybe.
Bosda Di’Chi of Tricor: Something is wrong here. When a due applies for a loan, they either accept or reject you. If they rject you they must give a reason- in writing. Usually the reason is vague and says something about “information recieved from Experian”, but they will say no in writing and with some sort of reason- it’s the Law. If they don’t ask to speak to the manager and work your way up, explaing you will file complaints with the proper regulatory agency if they don’t. I have never heard of a bank acting like that.
This is excellent advice. But you can get a free credit report directly from the reportin agency if you have been turned down because of info in their report. In some cases it is not easy.
But yes- dudes- The TV ad with a site that sounds like you get a free credit report does *not *give you a free credit report.
If face to face interaction is difficult for you, try eloan. The application is entirely on line, they give you an answer quickly with an explanation of why if you are denied and your Dad has no influence in their decisions.
The question was “How do you get a first bank loan?” The answer (in the first reply from friedo) was “All you need to do is go into your local bank and ask about loans, then fill out a bunch of paperwork. They will check your credit and make you an offer.” Several other answers that came later were similar. Most everyone seems to be perplexed as to why no loan has been secured, but based on the information at hand, it seems unlikely that we will ever know.
The OP has been answered and the thread is now about trying to figure out why Bosda can’t get a loan. Since he doesn’t want to give us any more information…
The questions was HOW do you get a first bank loan. We told him how several times. We told him what to do if he got rejected and offered him many suggestions to help him secure a loan. Just because the OP hasn’t actually gotten a loan doesn’t mean we haven’t answered the OP. We’ve answered the OP more than sufficiently, but the OP has been (it seems) deliberately not answering our questions. We are not in the position to actually get the OP a loan but, if the OP is being truthful and would just come back and answer the giant backlog of questions instead of scapegoating his father, perhaps we could actually get him a loan, because he seems to qualify on all counts. If it has something to do with his appearance or some kind of physical discrimination or some kind of social phobia, we’ve even given him Internet-based options.
If he’s in the US and telling the truth, they do have a noteworthy regulatory problem.
If someone applies for a loan, you have to send them a letter telling why you’ve declined to make the loan.
Refusing to take an application is a poor policy.
I ask about loans, in general. I mention that I’ve never taken one out from a bank.
She/he asks why.
I reply that I’ve borrowed from relatives (true).
She/he asks about my credit rating.
I reply that I don’t know, but mention the card & my employment.
The stalling starts.
Something similar occured years ago, when I asked about a small business loan.
Ask in specific. Ask for an application, fill it out, and return it. They must let you apply, and if refused, they must tell you why. If accepted, and you don’t like the terms, you don’t have to take it.
As Frank said, you need to be much more specific. Next time, walk into the bank and stand in front of a teller, bank manager or loan officer. Get their attention and say something like, “Hello. My name is Bosda Di’Chi of Tricor. I wish to apply for a loan to purchase an automobile. How would I go about doing so?” Proceed from there.
Edited to add that while the only loans I’ve ever taken out were government-guaranteed student loans, I can’t imagine why they’d ask you about your credit rating. Isn’t that for them to determine once they’ve got your loan application in hand?
The link includes an online application. Really, just go to a bank and say “I’d like to apply for an auto loan.” (just like Frank and Dewey Finn said) It’s a piece of cake from there, I promise.
