i have a FDIC credit score of 712 and i was recently denied for an auto loan why?

Question

i am trying to apply for an auto loan on my own i have recently

canceled one of the three credit cards i own... i am 21 years

old does my age play apart in this decision... also i am

applying for this loan on my own...my ego wonn't allow me to

ask anyone in my family for any help (co-signing) because i

was taught that if a bank won't give a person a loan why would

i...and my next question is what is a good intrest rate i could

get for my credit score....712?

ALSO IS IT POSSIBLE FOR ME TO JOIN A CREDIT UNION WITHOUT BEING AN EMPLOYEE OF THE COMPANY

Answer 1

I hope you mean FICO score. FDIC is Federal insurance for bank accounts.

FICO score is one of two parts - the other is income.

A big component of your score is the % of available credit. So if you have three cards, with a combined credit line of $1000, and a combine balance of $300 - you have 70% available credit line.

Cancel one of the three cards, with a line of $500, and now you have a balance of $300 out of available credit of $500 - and are 60% in debt, 40% available credit.

Canceling credit cards is a bad idea. It's actually better to let them putter along with zero balance. Just charge something once in a while to keep the bank happy and pay it off within 30 days.

Too many inquiries - also bad. More than 5 or so per year - not good - it lowers the score.

You may have insufficient income to debt - even though the score is good (which does not take income into account - only your payment history).

In general 25%-30% of your income is the limit for housing, and above that an additional 20-25% of debt (not counting housing) to income. So if you make $1000 per month, and your rent is 200 - you are in range on the housing. If you then owe $300 / month of non-housing debt, your remaining debt to income is 30% - too high.

In general, the bank's limit is housing + debt to total income should not exceed 50%. In the above example you would be at the limit.

In general again, the creditors like to see a house, and 3-5 lines of credit - so a car loan, plus 3 credit cards would be 4 lines plus the house itself. That would be good. Beyond 5-6 it's considered excessive.

Answer 2

1

Answer 3

Is A 712 Credit Score Good

Answer 4

Hate to break it to you, but a FICO score of 637 is NOT good. Credit has really dried up in the last 6 months and you need a credit score of at least 720 to be considered to have "good" credit. With a bankruptcy on your record that is only 3 yrs old, you are seen as a particular credit risk that many lenders wouldn't be willing to take a chance on. Credit is just really hard to get right now and I would suggest to hold off on applying for anymore b/c you'll only get the same result. Use your tax return money...BTW, why do you have to wait until March to get your refund? File next week (if you have your W-2) electronically and you should be able to get your return by the first or second week in February.

Answer 5

I agree with the first two posters.

Is the score you listed from before or after you closed that one card? If it's before, I'm sure your score is actually less than you think it is. The drop would have come from closing the card. You lost the credit limit so it raised your overall utilization on your other accounts.

As for the closed card, depending on who the creditor is and if it hasn't been to long since you closed it, you might try to see if they will re-open it. (if the card has any fees attached to it, you might think about if it would actually be in your best interests to re-open it)

Being the age you are you will probably have better luck in getting financed for a vehicle if you have a fairly large down payment.

As for the credit unions, there are tons of CU's that will allow people to join through a back door.
Some will allow people to join if they live in a certain area, go to church in a certain area, if you or a family member is the service (like the Navy, Marines, etc), join a civic club for a small fee, etc., etc., etc.
You would have to look on the CU's site to see what they require for membership. They almost always have a listing on their web sites.

You can also do a Google search for CU's in your area and look at their membership requirements.

Answer 6

You can join any credit union bank w/o being a member. I am thinking it is more to how long you have had credit...you said your 21...alot of companies usually won't give a car loan w/o a co-signor due to age...studies have shown in the past that the younger we are we tend to fall back on our car loans...the co. see's it more as a loss than a gain...you might "plead your case" to a close family member and have them co-sign but sign the deed with your name ONLY...

Answer 7

Informative replies, just what I was searching for.

Answer 8

Try http://goo.gl/DsqP3y