Edmunds Answers

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  • avatar mikarose333 09/01/10 6:02 pm PST

    There's a lot of things here preventing you from getting a loan. Honesty is the best policy, so here ya go:

    1. FOUR months isn't very long. Maybe not even long enough to be showing on your credit. Even if it is, four months of having just one credit card really isn't proving your ready for the responsibility of a car loan.

    2. The mileage is killing you. Traditional banks don't like to do loans on cars with more than 60,000 miles MAX. They're just not likely to last the term of the loan, and who's going to pay on broke-down car? They can assume that in addition to the car payment your going to at least have some repair bills beyond oil changes.

    3. $800/month? It's just not enough. Loosley speaking, you can get approved for 20% of your monthly income to go towards a car note. In this case that's $160. Banks are seeing that you need to pay for car insurance and gas on the vehicle, in addition to living expenses.

    These things being said, this is a loan your FATHER is taking out, puting you on it to help build YOUR credit. If his is bad or if he already has a vehicle or two on his credit it's going to be tough. You're going to need second chance banks that dealerships have access to. These aren't your typical banks that do a multitude of things- you need a bank that just does car loans.

Answers

  • george_r 08/31/10 11:10 pm PST

    Go pull your credit report immediately. You may be the victim of identity theft.

  • newsie23 09/01/10 9:17 am PST

    Currently, bankers think a 'good loan' is a paid off loan. They do not have any umbrellas - unless it is Sunny! You lose credit rating points, each time you apply AND are turned down.

    Source: 

  • 04350 09/01/10 12:41 pm PST

    Ask the branch manager @ your bank why you were turned down.

    Ask him/her what specically they are looking for on a $6,400 loan + sales tax on the $7,600
    in terms of credit score, down payment, interest rate, what's the maximum mileage that they'll make a car loan. Heck, they'll have security.

  • mikarose333 09/01/10 6:02 pm PST

    There's a lot of things here preventing you from getting a loan. Honesty is the best policy, so here ya go:

    1. FOUR months isn't very long. Maybe not even long enough to be showing on your credit. Even if it is, four months of having just one credit card really isn't proving your ready for the responsibility of a car loan.

    2. The mileage is killing you. Traditional banks don't like to do loans on cars with more than 60,000 miles MAX. They're just not likely to last the term of the loan, and who's going to pay on broke-down car? They can assume that in addition to the car payment your going to at least have some repair bills beyond oil changes.

    3. $800/month? It's just not enough. Loosley speaking, you can get approved for 20% of your monthly income to go towards a car note. In this case that's $160. Banks are seeing that you need to pay for car insurance and gas on the vehicle, in addition to living expenses.

    These things being said, this is a loan your FATHER is taking out, puting you on it to help build YOUR credit. If his is bad or if he already has a vehicle or two on his credit it's going to be tough. You're going to need second chance banks that dealerships have access to. These aren't your typical banks that do a multitude of things- you need a bank that just does car loans.

  • Stever@Edmunds 09/04/10 12:35 am PST

    You can reply in this thread by clicking the Answer this Question button and that will help keep all the information in one spot. Thanks!

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