WHY CANT I GET A VEHICLE ON credit?

Question

We even put down a substantial amount and NO ONE wants to gives us any credit...I was looking a 20000 dollar car, had about half down and they NO, because of past credit problems and I mean from like a year ago, my husband makes over 100,000 a year in the trades, yet they would a 18 year old DOMO (gas station) worker credit...WHAT GIVES???

YES his credit is bad (p[lus there are still things on it that show they havent been paid when they are, like from a year ago, we tried calling EKWIFAX, no help there) the thing is I know someone who claimed bankruptcy and got a brand new dodge RAM 2006 model...why will they give credit to someone who WILL NOT pay there bills, but to someone who has been trying to better there credit CANT get credit?)

Answer 1

You should check you and your husbands credit history. A year ago is not long enough to have resolved and established credit. Consider the following:

1. Have you resolved your past due credit accounts?
2. Do you have any positive accounts on your report?
3. Who has the better credit report? You or your husband?
4. How long has your husband been on his job?
5. What are the other credit obligations, if any, you have?

Maybe you should try to obtain credit in yours or his name only. Making a large amount of money yearly does not make you a good credit risk.

Answer 2

I'm not sure what your financial circumstances involve, but... People are generally denied a loan when their debt to income ratio is too high. Do you own a home? If so, what percentage of your GROSS income is paid towards your mortgage? Are you currently financing any other vehicles or equipment? If so, again - what percentage of your gross income is paid towards it? What about credit cards, child support/alimony/civil judgments, student loans, etc.?

Add your percentages together...What does it amount to? If (ball park figure) your debt is absorbing more than 28% - 40% of your gross income, getting approved for an auto loan is going to be tough.

Though it requires a fee, bankruptcy helps a lot of individuals get back on their feet. Once you release your debts, some creditors will offer another chance, though at high interest rates. If you've filed bankruptcy recently or within the last 7 -10 years, getting approved for an auto loan of the amount mentioned earlier will again, be pretty tough.

Good luck.

Answer 3

If you have any credit problems at all, a year is definately not enough time to expect the finance companies to over look them. If you all make that much money, perhaps you could try to settle with some of these companies, however, even if you do that, it will take 7 years from the LAST DAY THAT THEY REPORT IT. (NOT 7 years from the debt) Although, it could be your debt to income ratio. If you are spending more than you make, even if you make a substantial amount, there are limits to how much credit you can obtain. Good luck to you.

Answer 4

Once you get bad credit it is very tough to shake no matter how old it is you will have to work at getting your credit back together by paying all your bills and credit cards on time and try and talk to a bank and explain the situation and they might give you credit but it will be with a higher interest rate than someone with good credit would have

Answer 5

Well, many lenders have a minimum amount to finance of $10k. If you put about half down on a $20k car, you may have been under $10k. Also, some lenders don't look at the structure of your deal (i.e. how expensive is the car, how much money will you put down). They only look at your credit profile for making a decision (i.e. credit bureau reports, time in job, time in residence, income, debt-to-income).
Even though your husband makes over $100k a year, the finance companies may not have liked your credit bureaus. I always tell my employees, it's not how much you make... it's how much you spend. Even high income families can over-extend themselves and have poor credit.

Answer 6

It depends on your credit score. Get a credit check done (free if you do it by mail). You can also do it online at equifax.com. Take a look at the report and see if there are any errors on it and if you should get some things removed. If you go to several banks/car dealers trying to get a loan, this will also affect your ability to get a car loan, so since you were rejected by one, do NOT go to another one until you figure out what, if anything, is wrong.

Answer 7

a year isn't that much time. improve your credit,thats what happens when you screw your credit up. who wants to loan to someone like that. although im surprised you cant get a loan at a higher interest rate, you messed up messed it up pretty bad to be having that problem. do both you adn your husband have bad credit? Try to get a loan in the others name.

also, everytime you apply and they are doing a credit check, that is appearing on your report so that does not look good either.

maybe you should rethink the car you want to get. buy one you can afford and pay cash.

Answer 8

OK look up rent to own car deal ship and talk to them then go down and chose a car you want put down the require down payment they cant charge you interest on the car you are renting it in til it pay off with no interest then ounce it pay off you have credit again then take that car and some money for a down payment to a car lot of your chose and buy a car of your chose that is what I'm doing and it working out great for me.

Answer 9

credit history is very important, also debt ratio is very important, how much do you already owe?????

an 18 year old gas station worker that lives at home with parents and has no debt or bills can make a car payment

THERE IS SOMETHING YOU ARE LEAVING OUT

any bank would loan $10,000 on a $20,000 car even with terrible credit

Answer 10

If you had "charge offs" on your credit report, or unsecured debt (credit cards) that were never paid, and the creditor had to close the account unpaid, this will take 7 years to be cleared from your credit report.

What you can do, especially if you are making THAT much money, is get a copy of your credit report, and call the credit card companies with which you have the outstanding debt, and pay off and close the credit card account. Make sure you report back to equifax when the account is paid off.

Someone with that much income can also pay cash for the vehicle ?

You may have to work with the finance company, they may require more of a downpayment on the vehicle. If they can't get you going, go to another finance company, or get with your Bank and talk with a finance rep. there.