Loan Denied?!?!?
04-09-2003, 02:36 PM
#31
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</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica">Originally posted by BartW:
<strong>I believe the problem is with the age of the car, loan institutions do not like to lend money out on a car that is more than 5 years old because the condition of the car at that point can vary greatly, my advice to you is to just pay cash for the car or you can't afford it. Taking out a loan on a car this old that requires expensive maintanance is just a bad idea and if someone does finance this car they will nail you on interest and you will end up paying too much for it.</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">The age of the car is one factor, but mainly due to its value should the loan default (collateral). A bank needs to get its money back by selling the car at auction if the payments are not made. If the book value is much lower than the amount they loaned someone to buy the car, the bank is in trouble. I agree with paying cash if at all possible.
<strong>I believe the problem is with the age of the car, loan institutions do not like to lend money out on a car that is more than 5 years old because the condition of the car at that point can vary greatly, my advice to you is to just pay cash for the car or you can't afford it. Taking out a loan on a car this old that requires expensive maintanance is just a bad idea and if someone does finance this car they will nail you on interest and you will end up paying too much for it.</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">The age of the car is one factor, but mainly due to its value should the loan default (collateral). A bank needs to get its money back by selling the car at auction if the payments are not made. If the book value is much lower than the amount they loaned someone to buy the car, the bank is in trouble. I agree with paying cash if at all possible.
04-09-2003, 02:45 PM
#32
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I was in consumer loans for 15 yrs. Stability = Predictability. Stay on the job, apply for 1 & only one credit card, Visa or Mastercard, at a time. If turned down apply with another. This will keep inquiries to a minimum. It scares loan officers to see inquires from all over! If you get it, use it sparingly and wisely. Time will pass & before long, you'll be getting loan invitations from everywhere. There is no reason in this economy to accept an interest rate above 12%.
And, as others have stated, start a relationship with a particular branch of a bank or credit union. They get to know you, see your paychecks and patterns of deposit and withdrawal. I promise, if you do this, it will pay off big in a relatively short time.
And, as others have stated, start a relationship with a particular branch of a bank or credit union. They get to know you, see your paychecks and patterns of deposit and withdrawal. I promise, if you do this, it will pay off big in a relatively short time.
04-09-2003, 03:27 PM
#33
Race Car
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I did ask the various places that turned me down why they did. The reason was no credit (one bank suggested I get a credit card, which I've had for 2 and a half years). The other bank said I didn't have enough credit. This bank is a smaller one, more local than Key, HSBC, CitiBank, BofA, etc...
I think next loan I apply for will be slightly easier, once I get this paid off (2 years!!!)
I think next loan I apply for will be slightly easier, once I get this paid off (2 years!!!)
04-09-2003, 03:48 PM
#34
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</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica">Originally posted by originalsterm:
<strong>I did ask the various places that turned me down why they did. The reason was no credit (one bank suggested I get a credit card, which I've had for 2 and a half years). The other bank said I didn't have enough credit. This bank is a smaller one, more local than Key, HSBC, CitiBank, BofA, etc...
I think next loan I apply for will be slightly easier, once I get this paid off (2 years!!!)</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Every time you get denied credit, they're required to tell you where they got the info, and that company is required to give you a free copy. Get your free copy and make sure your credit card is on there. It takes a few months for things to show up, but after 2.5 years it should be on there. But then by 'no credit history' the bank might have meant 'no secured debt' or 'very little history'
Secured debts will increase your credit rating more than unsecured, so wait for your dad to cosign, and then get a loan. You've waited this long, a few more days or weeks won't hurt.
<strong>I did ask the various places that turned me down why they did. The reason was no credit (one bank suggested I get a credit card, which I've had for 2 and a half years). The other bank said I didn't have enough credit. This bank is a smaller one, more local than Key, HSBC, CitiBank, BofA, etc...
I think next loan I apply for will be slightly easier, once I get this paid off (2 years!!!)</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Every time you get denied credit, they're required to tell you where they got the info, and that company is required to give you a free copy. Get your free copy and make sure your credit card is on there. It takes a few months for things to show up, but after 2.5 years it should be on there. But then by 'no credit history' the bank might have meant 'no secured debt' or 'very little history'
Secured debts will increase your credit rating more than unsecured, so wait for your dad to cosign, and then get a loan. You've waited this long, a few more days or weeks won't hurt.
04-09-2003, 03:54 PM
#36
Race Car
</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica">Originally posted by originalsterm:
<strong>I got the loan, I don't need a cosigner. Should I have one anyways?</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Not if you're satisfied with the amount you're being loaned and the interest rate.
<strong>I got the loan, I don't need a cosigner. Should I have one anyways?</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Not if you're satisfied with the amount you're being loaned and the interest rate.
04-09-2003, 06:15 PM
#37
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Get your parents to CO-SIGN. My inlaws are bank loan managers, they would never give a loan to someone only working 6 months. Looks bad on them if they give it to you and you lose your job. Aim for CO-SIGN, once you have had the job for awhile reaply for the loan in your name. Just a thought
GOOD LUCK!
GOOD LUCK!
04-09-2003, 07:19 PM
#38
Race Director
</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica">Originally posted by originalsterm:
<strong>I got the loan, I don't need a cosigner. Should I have one anyways?</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Not if you don't need to, a co-signer is the person who'll have to pay if you can't so it will eat on that persons credit and your debt will be considered theirs as well.
<strong>I got the loan, I don't need a cosigner. Should I have one anyways?</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">Not if you don't need to, a co-signer is the person who'll have to pay if you can't so it will eat on that persons credit and your debt will be considered theirs as well.
