Experian is saying that my credit score is 703. Why can't I get an auto loan?

Question

I am only 19 and I have a lack of credit history but with a credit score of 703, why can't I seem to find someone to finance the car that I want? I make approx 35000 annually, so I definitely can afford it!! Please hELp!!

Answer 1

Credit score is only part of the loan process to determine credit worthiness.

Lenders look at depth of credit, debt to income ratio and stability to make credit judgements.

Your score,while high, may only be a two or three credit cards you've been paying on for a short time. Maybe your high credit is just $1000.00 which wont help you right now when applying for an auto loan.

What I would do is ask the finance manager at the dalership to help you better understand your turn downs. Remember, the dealer wants to sell you the car as bad as you want to buy a car. Most dears though use a variety of lenders to help you finance your car, they tend not to lend money on thier own cars.

The best thing for you is either a co-signer or start smaller. $5-6K on a short 36 month loan. Just to get some installment credit established.

Good luck. Good credit is hard to keep, your on the right path.

The FTC has helped you access your credit reports. Once a year you can go to annualcreditreport.com and pull all three credit reports for free!

Answer 2

1

Answer 3

Try using ford credit, I got approved with no co-signer and only 1,000 down when I was 18 and still in high school. They only lend you enough to get something cheap, I ended up with a brand new focus, but a new car is a new car! If that route doesn't work for you, Try CapitalOne auto Finance becuase they also approved me for a loan. The interest rate is going to pretty much suck, my focus I bought in nov. of 05 had 10.9%, but I refinanced with CapitalOne for 9.9% which was the best I could find for my situation. Even though you have good credit, Auto lenders look for longevity of accounts. So, being young like me, its hard to have a long credit history becuase we have only been able to use credit for a little over 1 year. Don't give up hope, You'll get it done.

Answer 4

You can get approved but you will pay a high interest rate. I had similar problem and I went down to my credit union and spoke with a loan officer - not the flunky at the front desk. When you deal w/ a credit union or bank you can sometimes put up addition security for the loan. Key thing in being successfull with this type of loan is borrow less for the car than it is worth (get car cheap or put as much down as possible).

Answer 5

go to freecreditreport.com you can get a list of debtors and any bad things. You have to pay for the score but since you already know it.

Have you not been at the job long,or your residence long. It can be so many things. Are you not putting down enough on the car? Call the bank and ask them HOW much will you loan me.

The should be able to show you the actual report. That will say you got 20 points off for not enough credit, or bad debt or whatever. they start at 800 and go back. Over 700 is great. Tell them you will take your business elswhere and screw 'em

Answer 6

What's your high credit. Your score isn't the only factor. How many accounts do you have?, what is the balance in relation to the credit limit?, how old is the account? The latter is probably your biggest hurdle. Not being a smart as_, but you need to learn to walk before you learn to run. That is the banks point of view.

You have 2 options: A. money down B. co-signer

Answer 7

you are not 21 --- maybe your debt ratio is not what the credit's like ----- go and get a co-signer and prove that you can make the payments on time and never late ---- the next ride will be easy to finance --- this is the only way to build good credit and increase your score ..... here it is ..... people with no credit have good credit because the is nothing bad on their record AND people with bad credit really do not have any credit except for maybe a car and a house purchase.................. get the co-signer and do the on time and no late monthly payments this will get you good history ... if you cannot get any help try a note lot ....

Answer 8

Your credit history is probably not long enough -- still having a slightly higher score might be able to fix that...

When you're trying to build your credit score it's important to get a comprehensive view of what is actually effecting it...

Your Credit Score is calculated with the following breakdown:
35% - Payment History
30% - Credit to Debt Ratio
15% - Credit History
10% - New Credit
10% - Credit Types in Use

If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.

I've got a lot of information on my blog about credit scores, and I get a lot of questions so feel free to check out any of my posts on millionster.com; I believe my articles here address many of your concerns but if they don't and you still have any specific questions feel free to leave a comment and I'll reply.

How Can I Increase My Credit Score
http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/

and

10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/increase-fico-credit-score/

Also be sure to check out the promotional links I've listed here to help you get a better picture of your creditworthiness:

MyFico's Full Credit Report
http://millionster.com/go/myfico

Suze Orman's Credit Report Repair Kit
http://millionster.com/go/suzekit

30-day Trial of Credit Score Tracker with Free MyFico Score
http://millionster.com/go/fico30

Answer 9

Experian is tough
they don't like people with short credit history
in your case, you are 19 and you barely got your credit going
It will get better with time
try to go with manufacturer financing as they can give you better rates for students or first time buyers
try VW.com, they have good student program

Answer 10

Wanted to ask this question too this morning