I can't seem to get approved for a car loan… any help?

[Hall1]

Hey guys, I'm looking to purchase a new car for once in my life, but my credit history, or lack thereof, seems to be keeping me from getting approved. Does anyone know what it takes to get approved for a car loan?

It's not like I'm in any debt at the moment, but I guess I don't have what most people are looking for.

But I keep seeing these places that claim they'll approve you for a loan, even if you have bad credit or no credit… are they legit? Like this one called Prescott Financial claims that only 2% of the people who apply through them get denied… but I'm hesitant.

I'm done being denied, over and over again, so I thought I'd ask around first before I applied again. All I want is a decent car to get me from point A to point B, without breaking down…

[fredjacksonsan]

There is a lot to go into this, I'll try to be brief.

First, find out your credit score, and get a free credit report to make sure there's nothing bad on there that you didn't do.

Then, do some research on how to build up your credit. Generally, paying everything you pay on time contributes greatly. Even utilities. Even rent. Even credit cards. Everything.

Each inquiry (as in every time you apply for credit) your credit score takes a hit. When you apply for credit, the first thing they do is check your score. So if you are applying over and over again, guess what? You look worse and worse each time. So my thoughts would be to NOT apply for ANYTHING for at least 6 months, then check your credit score again.

If you have a credit card, or multiple credit cards, and are carrying a high balance, this reduces your score. So pay them down but keep the account(s) open; keeping them open will assist your score. A credit card that you just opened drops your score, one that you have had awhile with a good payment history increases your score.

Age may play a role in some situations, so keep that in mind also.

I would recommend a Discover card. They give you your credit score with each monthly statement, so it's easy to keep an eye on it. You can also go online and have a look whenever you would like. If you get approved, they often have a balance transfer deal with 0% interest to start; but that might depend on your credit rating.

Hopefully that all helped, post back if you have any questions and I'll try to comment intelligently.