Auto Loan Question
 

Since I'm planning on going to the Chevy dealer tomorrow with my dad, I decided to go ahead and apply for an auto loan with my bank (Bank of America).

....I got denied, they said they would be emailing me in 30 days to tell me why. *Sigh. Does anybody know why this would happen? My dad is saying it's because I'm 20 years old & that when I turn 21 in November it will be better for me to get credit cards and a loan. I've also tried to apply for other credit cards last year & got denied. I don't understand why... I've had my BoA credit card since 2007 & my credit is 730.

Anybody know why this would happen? This really blows... my dad told me to try to apply for the loan on Autoway's website but if we go tomorrow I'll have them do it there. I was originally going to go with BoA cause their rates are as low as 3.59% and I didn't want my credit to be ran all over the place at the dealership.

My bro got his at 21 from an auto loan website but he had a steady job. I am also 20 and am taking out a loan but i dont think they will back me unless my dad also signs it but i also have 15g in the bank im not sure of your history with your bank or any jobs that they would see you have.

Your age is a big factor, but not the majority of it. You also have to look at your debt to income ratio, and how much credit you have aquired in the past. If your dad can co-sign, that would be a huge step in the right direction for you.

its harder to get a loan these days. how long have you been at your current job? how much do you make? that also comes into play. shouldve let your dad co sign.

now youll have to take a hit on your credit report.

word to the wise...leave BofA. they sucks balls.

Most likely denied because your credit history is too short or does not contain enough different types of credit lines.

Having my dad co-sign on the online app. would of been the "Do you want to apply individually or jointly?" optional correct? I don't want my dad to co-sign for me cause his credit is SHOT... if anything I'd have to have my mom co-sign for me hers is some-what better. I've never had a late payment with BoA always paid my bill on time. So I shouldn't have any bad history with them.

I was told it's harder now to get loans/credit cards... that a couple years back you could be 18 and get all that. Now you have to be older.

Basically co-signing is for if I default then the person that co-signed for me would be able to take on the car correct?
I've been with my job for a year and 2 months, that's what I put on the application. I know my credit score will go down but it'll do that in 30 days. Everybody says BoA sucks but I've never had a problem with them... my other option is to try the local credit union here. Their interest rate starts at 4.1 I believe. I swear nothing can go right for me... if it's not one thing it's the other.

+1

I do a lot of banking with BofA but wouldn't use them for a car loan. I got my loan from Chase Auto Financing @ 3.75%, try them, they can give you an answer in @ 30 seconds. Also, Capital One does instant approval auto loans on line, you could try them, too.

That's the thing though... I've tried to apply for other credit cards even when they send me them through the mail saying I'm "pre-approved" & I still get denied. It's not like I haven't tried to build up more credit they just don't want to approve me so I don't understand how they want me to get better credit if they're not willing to give me any.

The dealer should be able to help you out with a 730 credit score, and the interest rate shouldn't be high. My dealer offered 4.5% but the finance guy was such a jacka$$, I used my bank instead.

You have to consider how much you want to finance, too. That makes a difference.

BTW, Chase and BofA are in bed together, but Chase doesn't have the loan restrictions that BofA does. I think they'll be able to help you. They were great to work with, too.

Here's an idea. Get the financing with the dealer and re-fi in 3-6 months for a lower interest rate.

I think it has to do with previous high-credit limit.

If you have not had a large loan in the past, they are reluctant to give you a $20- or $30,000 auto loan now. Sometimes even with a large amount of cash down they won't do it.

Most people will need a co-signer for an auto loan their first time out.

Hope this helps you understand. Also, I would recommend that you don't do a bunch of online credit apps. Every time a different company runs your credit you lose a point or two. Those few points can make a difference in getting a loan and not getting a loan.

My recommendation is to go to your bank where you do your personal banking (provided you have a good relationship with them) or to the bank or credit union your parents use. Otherwise, let the auto dealership that you are buying your car from do the work for you. They place millions of dollars of business with lenders on auto loans alone and they might know just where to send you once they take a look at your/your parents credit application.

Good luck getting the car of your dreams! :D

More credit cards are not necessarily better. You need variation in credit lines to prop up your score. I'm talking about revolving store credit (department store/Discount Tire/etc), secured loans (car loans - small ones on used cars, not on a brand new car, to show consistent payments/payoffs), student loans, etc...

You also need to look at how you manage your credit card(s). Do you carry a balance from month to month? Do you pay more than the minimum? How much of your available credit do you use? There are multiple factors that go into approval for additional lines of credit. Banks are hurting from the losses they've taken over the past couple of years so they are much more selective about who they will give credit to. As for those "pre-approval" letters, they are just a marketing ploy...read the small print on those offers.

Did you just move? That's what killed mine - the different addresses. My officially address WAS Tennessee but I was only here for a week and it didn't give the credit agencies time to change my damned address.

I was just eating dinner & I told my parents that I guess I would need to have a co-signer. My dad said they will give me a loan but with a high interest rate he said like 9% which is not what I had my mind set on (I didn't want anything more than 5.0%).

Isn't refinancing bad though?

Yep... I haven't applied for a credit card since last year. I knew that that would lower my credit unfortunatly. You know I originally wanted to actually go into a BoA and do the loan app. there not over the internet, I thought that would of been better? Thanks for the help girl!

Now that you mention student loans, this makes me think I won't even be able to get a school loan when I want to apply for one. I usually always pay off the amount due on the card, I always pay more than the minimum.

That's a negative. We've been at the same house for the past 9 years (in December).