Need to improve my credit score.

Hey guys, long time lurker here, but I just made an account.

I had a ap1 but sold it a while ago. now im now trying to get an ap2.
Trying to get one around the $17k-$20k range. I have $10,000 for downpayment, so I will only need a $7k-$10k loan.

Why do I keep getting denied on my loan request. I figure asking for $10k isnt asking for too much?

I am 20 years old
2nd year student at college
making $40k/year in my current job
credit score of 700
NO debts at all.
The only thing I pay per month is rent to my parents, but its not like the bank knows that.

So given all that information, why do I keep getting denied? I only have 2 credit cards that are strictly used for building my credit score.

 

What is the value of the car? It could be they will only loan a certain percentage toward the car.

 

Damn. I thought for sure a spammer. I was so excited but now serious post is serious.

 

where have you applied? With a small loan like that + a 700 credit score i wouldn't think you'd have any trouble. Have you tried local credit unions?

 

Credit union will probably approve you. The fact that you DON'T have any installment debt, or history of successful debt repayment might be a factor in these hard times.. High score yes, but still not many real world factors to base your repayment ability on.

 

^ yeah, credit history is as important or more important than your score... if you've never paid off a loan and haven't had a credit card for very long, sometimes that is viewed as a big negative.

 

Revolving credit is what they look for. Meaning you use your credit card often and pay it off accordingly.

 

<---- Loan underwriter



The problem is lack of credit history. If I pull your CBR im not going to see any trade history. Sure, your situation sounds good, but as a credit analyst we need some history to verify. A $500 credit card being paid off every month doesnt mean much to me.

Long story short, if you're looking to get into a car immediately, you're going to need to have a parent cosign so you can get some credit history going.

 

I cant do this without the parents, so cosigning is not a possibility.

So is it worth it to try a credit union?

So far I've applied to Bank of America, Capital One, Wachovia, and Chase!!

So without a cosignee or long history, I need to wait several more years to get another S?

I guess I can wait to buy it outright in cash, but this was supposed to be an early bday gift to myself.

 

you applied at allll the wrong places.

apply at local credit unions. i'm not making any promises, but you'll def. have better luck.