So I have this Truck I got for work and it's only 8K, but when I went to the local Lincoln dealership they ran my credit to see if I was able to finance the car I wanted with out a co-signer and they told me that I couldn't even do that because I already have a car loan, What's up with that?
2007-10-29 18:31:38 · 9 answers · asked by Om... 3 in Cars & Transportation ➔ Buying & Selling
Most banks use a debt to income formula. The two largest purchases most people make is, first their home then a car.
Even if you live at home and pay no rent they still assume you will probably move out within the next five to six years.(the length of your car loan)
For home payments they figure a rough percentage of 25-30%
For your car payment they may figure your payment needs to fall within a range of 13-18%.
You maybe close to your limit.
2007-10-30 01:59:37 · answer #1 · answered by askmeiambored 2 · 0⤊ 0⤋
Get pre-approved for a loan at a credit union. If they can't make you a loan, they will tell you why. You may have looked at too expensive of a car - Lincoln - so adjust your sights a little lower and try again.
2007-10-30 02:37:50 · answer #2 · answered by Huba 6 · 0⤊ 0⤋
Sounds like your debt to income ratio is high. If you have a lot of POTENTIAL debt, that looks bad to creditors. For instance, it's not always good to have a credit card with a 14000 dollar limit. Creditors look at that like "oooh, she could spend and spend and not pay us. If your possibility of debt is higher than your income...that is what hurts your FICO's score. Go back to that dealership and ask for a copy of your credit report. That will help explain things too.
2007-10-30 01:36:03 · answer #3 · answered by Bobbie 3 · 1⤊ 0⤋
This probably means there is a problem with your credit.
Get a credit report with all 3 credit bureaus.
Your credit/debt ratio might be messed up or (depending on what kind of car lot you walked on) your income might not support the payments.
2007-10-30 01:41:01 · answer #4 · answered by Bleh 2 · 0⤊ 1⤋
You should sell you truck first no one wants to give you a loan if you already have one it's too risky based on your income.
2007-10-30 01:35:32 · answer #5 · answered by Anonymous · 1⤊ 0⤋
They are saying you can't afford 2 cars. Pay off your other loan first and try again.
2007-10-30 01:34:30 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Well, it's supposed to be a secret, but guys have gotten together around the nation to make sweet ladies like yourself think that you are poor. How else can we convince you ever to marry one of us? Conniving, yes. Stupid, no.
2007-10-30 02:29:11 · answer #7 · answered by Robert B 5 · 0⤊ 1⤋
Bank thinks it's risky to take a chance on you...Sorry!
2007-10-30 01:34:53 · answer #8 · answered by Grasshopper 5 · 0⤊ 0⤋
SOUNDS VERY SIMPLE, YOU CANNOT AFFORD A SECOND VEHICLE AND THEY ARE TRYING TO PROTECT YOU FROM A SOON TO BE REPO.
DON'T FORGET THE EXTRA INSURANCE ,GAS AND MAINTENANCE THAT WILL BE NEEDED ON THE SECOND VEHICLE AS WELL.
2007-10-30 07:03:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋