AMG 17GT

You got redirected to the decline line. Letting you know your rights.


Look take the 3.99 deal. The way credit lines work is you have 30 days to secure and it will not bump your score down. If you continue it will crush your score

I know u hate it but charge your card limit for 90 days after the loan and pay it in full and watch the magic that comes in the mail. You'll see.

fortytwo

Yeah what you said makes sense. It's more that it's such a pain in the butt to have a car in San Francisco, that I figured, might as well drive what I really want.

I'm just going to hold off until next year and opens a credit card or something.

fortytwo

I'm not sure to follow.

Only offer I have right now is the dealership one (40k downpayment, 42k financed at 7% on 60 months), or WF at 3.29 for 22k.

I could do that but it's too low and my savings will be out of my comfort zone. I'm still hoping for Thursday with WF that they changed their mind. We shall see

CoolBDPhenom03

Have you looked at Patelco or MeriWest credit unions?

fortytwo

I didn't check these ones. I'm just worried my credit score gonna get killed if I apply again.

If Penfed declined as well, I don't think there is much hope if you see what I mean. Gonna be the same cosigner situation I imagine.

AMG 17GT

Ok well this thread is getting long hahaha

If this doesn't play out the way you want just take a pass and do exactly what I said on the card. I'm talking charging everything for awhile and build your credit foundation. And join a credit union and say well if I deposit 20k in a cd for car loan length, will you give me a loan for that period?

It's the financial Irony that confronts every young person. It's just that this meltdown has every lender paranoid.

That's all I have here.

fortytwo

Yup, my bad this thread is getting really long.

Thanks for everybody who gave input! I really appreciate it.

I will charge the credit card and try to build more history.

I will also be looking more into the 2013 used market next year so everything will be easier I imagine:

- the loan
- the money saved
- the price of the car

Thanks again folks! You guys are really lucky

I am Jeff

In addition to charging your credit card to establish history, you should also call up your credit card company and request for a credit line increase. Credit agencies don't like to see someone with a low line of credit and no history applying for a 60k loan. Open a few CC's and request for large credit limit. If you're worried about losing the cards, just lock it away in a safe deposit box. It's unfortunate, but you don't have any credit history and you're not a US citizen.

Good luck!

jvanbrecht

FYI, whenever you are turned down for credit, they have to provide the reasoning if you ask them.

cloverfield

Wait a month and to go www.annualcreditreport.com to see what damage has been done under the inquiries section. It's a free site that US consumers can access once every 12 months to get a copy of each of the three major reporting bureaus. That will also allow you to see a snapshot of your creditworthiness going forward.

Note this site does not provide FICO scores, which have to be purchased separately through the Fair, Isaac site. The dealer and WF should have each provided you with a copy of the report and score used to determine their answer, by the way (though you might have had to ask for it at the time.)

fortytwo

Thanks for the heads up!

It's been crushed, already know I went from 750 to 713 after WF, and Penfed told me it's 690 now.

CoolBDPhenom03

Same thing happened when I bought my place. 780's to below 720 in no time.

Sidv22

damn! that will require lot of hard work to get it back up! as strange as it may sound, try to get a 0% apr credit card and carry a 20-30% balance on ur cards for a few months. Apparently, a slight balance is better than no balance at all and did wonders to my credit score. try to sign up at creditkarma.com, quizzle.com or mint.com, so that you can monitor everything in one place and get some finance tips.

CoolBDPhenom03

Apparently, Capital One has a badass card - no APR, no foreign fees, etc.

fortytwo

Hey guys,

I know this thread is mega long and I'm sorry about this!

My buddy who was willing to be cosigner offered to loan me 20k at 1.99 on 24 months, with all the extras "that go with it" (meaning he's a friend right).

So with WF at 22k + 20k, I would put the difference down, so 40k downpayment just like MBF, but with way better rates.

I'm waiting to hear back from WF tomorrow and explain them my plan.

In the meantime, I got a dealership in SF to offer 75k (MSRP 82,105) but it doesn't come with Distronic (only lane tracking package, but carbon fiber trim which is meh).

I'll also ask if WF would do another hard inquiry in August (the prices will be lower) or if they can hold the pre-approved loan. If they can, I may just wait then to get a better deal on these 2013.

CoolBDPhenom03

Sounds like he wants to drive it too...if so, better insure that baby to the hilt!

A C

You should be at a better price on the car since 2014s will be arriving soon.

2 months ago I picked up a steel gray $68k car for almost $10k off. Now I've bought 5 MB's from this dealer, so keep that in mind. But I know he has a couple more he wants to move.

Have you looked into a one pay 24mo lease also, it may be an option. Pay it all up front - likely $22-24k on the car you're looking at.

PM me if you have questions....

theclutch

42, you need to understand "the rules of the game". As an "older" person, I picked up from people older and wiser than myself to help guide me through life, etc...

Having said that, my suggestion for you moving forward is to stop paying cash for anything. Get your credit card bumped up to the highest level possible and then charge everything: groceries, movies, gas, utilities, dinner, Mcdonald's, Burger King, EVERYTHING... But, of course, pay everything off each month so you don't accumulate interest. Each year, you would have then amassed a certain amount of "yearly $ transactions". Although you have cash money now, the credit card transactions will show "responsibility" through payment consistency and experience. Those are things "cash" can't buy.

You can't blame the creditors for not wanting to lend you x amount of money since they will all see you as a "high risk with no signs of responsible and consistent credit history" regardless of the fact that you have x amount of cash sitting in the bank. Ask me how I know this... Once you start having "responsible credit history and years" under your belt, your credit score will climb to 850+ range.

Those who don't understand why this is happening don't understand financial credit. Romeo put it the best "You're a "ghost" in the financial world with one year employment at current time."

Also, each time you get "denied" a loan, it drops your score... Keep checking with more and more banks and watch your score keep dropping.

So if you really want the car with no co-signer (why drag someone else into your business - really? You're an adult, right? Having a "friend" as a cosigner is putting that friendship at risk in the future.), pay the largest down payment you can with the lowest interest rate the bank will give you. If you're worried about not having any savings, use the credit card but make sure you are diligent and consistent in paying them off. It will work better for you in terms of establishing a credit history.

Best of luck and you better post pics with the biggest smile on your face once you get the car!

jvanbrecht

As the previous poster noted.. having anyone co sign (friend or family, with the exception of maybe your wife if you are married), is a really really bad idea. Money is the leading cause of friction in any relationship.

Use your credit card, alot, like he said, use it for everything. However, do not pay it off completely, carry a small balance, say around 5 or 10% depending on your limit and how much you charged for the month. if you charged 1000, leave a $100 balance over into the next month, even at 14% interest rate(which is high for a credit card, at least for me that would be high), your looking at a couple of dollars in interest. If the banks do not many any money on you, they will eventually drop you. Okay, not all banks, Bank of America will most definitely though (I have intimate knowledge of some of MBNA's shenanigans, which was bought by BoA, those policies remain)

theclutch

This is actually very true to a point. Banks will "drop you" if they don't make enough interest off of you. I.e. - when it costs them more to have you as a customer than the revenue you generate. But if you charge enough $$ over a year period (where they are making money off of the vendors that you are purchasing from), they will not drop you even if you do not pay a $1 in interest for the year. In my case, I charge roughly $25k per year and pay off the balance completely each month.

cloverfield

This is really great advice. Carrying a small balance over month-to-month is exactly what is needed to build utilization history. If you pay your balances off in full every month before the creditors report the balances to the bureaus, your credit utilization could in fact remain at or near zero, since paying them off "too soon" and before such utilization has a chance to be reported negates the 'revolving' action of credit.

Unless, of course, you have a normal, pay-in-full AMEX or similar card, which is generally listed as 'installment' versus 'revolving' by the CBs.

I am Jeff

It is a misnomer that you have to carry balances on your CC to build up your credit score. I have never carried any balances on my credit cards. I use my credit cards as though they are debit cards. I rack up points and pay no interests. No CC company have ever sent me a letter informing me that they will drop me. The 3-4% transaction fees they earn from the transaction charges are more than enough for them to earn a profit. My credit is 820+.

CoolBDPhenom03

True, you don't HAVE to, but many sources have told me it is one method to boost your credit score, as long as the balance you carry does not exceed 50% of the available credit on the card.

abcut973

Man you should have tried credit union first. They are way more flexible.
But for sure your friends should have told you to use your credit card to build credit history. I've been in the US for only 2 years now and that was the first thing i learned when i landed in dallas TX. Luckily the company i worked for at that time was having partnership with a local credit union which helped me getting a credit card for my wife and I.
6 months later i was able to secure a car loan at 4.99%. It was a used car (2007 Q7 4.2 V8) for 30k$ which I admit is less then what your are trying to borrow. One year later (october 2012) i sold it, paid the loan off and bought 2 used cars (mazda CX9 for the wifey, C63 for me) for the equivalent amount of 60kish. Got the loans approved at 2.99%. My FICO score was around 720 if I remember.

So definitely it's not the amount of cash you have on your account but how responsible you are with your money.

My advice would be to buy (loan) a less expensive car for a start if you really need one, sell it in about a year. In the meantime build more credit history by using/paying your credit card and other revolving bills. Then go and buy the c63 of your dream

theclutch

It is not a misnomer... I know for a fact that this is true with some banks (not all banks). Although you don't carry any balances on your CC's, you may have other factors that prevented you from being dumped: you already established a credit history, you're older, have a longer income history, your transactions are higher $ value, etc. For ex, 3-4% transaction fee for someone that charges $3000 for a year is NOT enough for some banks to keep you (depending on some other factors). I.e. - it costs them more than $120 (4% of 3000) for the overhead to service some customers. Again, not all banks are the same. But with my firm consulting in the financial services industry (and others), I know this for a fact.