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Car Loan Denied-Why?

10-02-2008, 01:44 PM
My spouse and I just applied for an auto loan and got denied. We both have okay credit (647 and 725), make combined six figures. Why on earth were we denied? Is it the economy?

If we go to a dealer, will the dealer reject us too?

If we go to Lending Tree or another online auto loan place, will we also get rejected? Also, if we try another route, will all these applications create serious black marks on our credit score so that in a year from now when we try for a mortgage, we'll be rejected for that too?

Ray paulsen
10-02-2008, 11:06 PM
Credit scores (usually) range from 340 to 850. The higher your score, the less risk a lender believes you will be. As your score climbs, the interest rate you are offered will probably decline.

Excellent - 750 - 850
Good 660 - 749
Fair 620 - 659
Poor 350 - 619

Here's a look at credit scores among the US population

Up to 499: 1%
500 - 549: 5%
550 - 599: 7%
600 - 649: 11%
650 - 699: 16%
700 - 749: 20%
750 - 799: 29%
Over 800: 11%

Your combined credit score is fair to good but must show some blemishes that need to be fixed on your report card " answer " get a copy off your credit score.

For you to get approved the lender will run a credit report ,if you have been to 5 other dealers or online lenders and been turned down each inquiry will show on your credit bureau and the more inquisitions on your report card the less likely the current lender will approve you, its like saying to the loan officer whom has to make a decision why should i put my job on the line when the guys down the street did not , its vital you hook up with the RIGHT lending institution without to many credit checks

10-02-2008, 11:32 PM
I'd like to add that I believe some changes were made in the way requests for credit are calculated against your score. In the past, everytime you filled out an application, or someone accesses your report, it made a reflection on your score.
Now they allow for multiple checks in a period of time before it start to negatively affect your credit score. This applies to buying a vehicle or a mortgage. When we refinanced our mortgage 2 years ago, the credit officer told me that multiple checks within a 45 day period are counted as "one" check. I guess they changed the "rules" because of the greater availability of lenders and the ability to"shop around' for the best deal. More people today are doing this so it was set up to protect the individual who like to get the best terms.
Also, since you were denied credit you are entitled to a free copy of your report from the credit reporting agency(ies) that were contacted to provide the info to the lender. If you can find out from the lender who they contacted, then call the agency's toll free number, you can request a free copy due to that fact. Many people do not realize this fact as well as if your credit limit was decreased, or your APR was raised significantly, or any other negative item has occurred to one or more of your credit accounts. Also you are entitled to one free report from each of the 3 reporting agencies,Equifax,Experian,TransUnion,every year by going to . Be wary of other sites that tout free credit reports as there are strings attached such as signing up for a subscription service through them, or credit monitoring services.

10-06-2008, 02:17 AM
It is kind of hard to believe that current economy is not allowing you to purchase a vehicle. Use to work for Chevy Dealership for 6 years and with score like yours you would be approved instantly.

Now the question is, how much of a vehicle are you looking to buy?
Are you in debt?

These are the questions. Now, do not go to LandingTree and other online rating sites to get a loan, instead visit your local dealer who will work with you personally.

One thing to remember and this goes to all of you. 25-31st of December, you can get much better deal on any vehicle you want to buy, also look for rebates, incentives and combine them. The price you see on the sticker is $2000 more than "selling" price (excluding Corvette). ) [New cars]This is how it works. Tell your dealer to give you an print-out, than look for digits in upper side of that specific paper, there you can see the real cost hidden by some other numbers. (i.e 0008435728) that 8453 - $3000 is the price your dealer paid for and this is for used cars, new cars take $2000 from the same number.

All right, I went miles away from your original question, but now you got the whole 9 yards.

Good Luck,

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