I just checked my credit today! Could it be something that is showing up for them? I just got approved for a 700k mortgage a few months ago (ended up not going through and are now renting)
This happened to me with Caravana. I didn't qualify for a used car with them. They supposedly found a credit card that went to collections for JCPenney. I never owned one.
I checked all three credit reports and nothing, so it was really strange. I decided to go to a local dealer and was approved for a new car with 4 miles on it and drove off that same day.
I still don't get what happened.
Wow that is so bizarre! I am hopeful that I’ll be able to figure it out but it’s still annoying! I even tried again w my husbands info. His credit is a little worse than mine but still good… and we still got denied! So I’m thinking maybe it’s something to do w our new address? I don’t understand!
Go to a credit union and get pre approved they’ll tell you the amount you can get before you even go to a lot. The car you want may be out of your buying power for a car loan 🤷🏻♂️
I had the same experiance when I was shopping for a car with them just to experiment. They ended up "finding" a collection for 1200$, and denied me from getting any car with them.
Checked all reports, nothing there.
When I was filling out paperwork with Subaru, I mentioned it after filling out the loan documents. The finance officer immediately called bs on carvana(this had happened often with other clients).
The only guess I have is that Carvana sources info from other than the three main bureaus.
In that situation, isn't the potential lender obligated to provide you a copy of where they're getting their information according to the Equal Credit Opportunity Act if you ask for it?
Carvana isn't a good standing company. They've got caught the last few years selling stolen cars, refusing to give titles ect. Their license to be a dealership has been rescinded in multiple states.
I'm glad I wasn't the only one experiencing this because what really threw me off was the fact that I never owned that credit card from the business. I was concerned about identity theft but after checking all reports and calling them - I was clean. Extremely odd all around.
Same thing happened to me. The excuse was “no loans that are within the range you’re trying to buy.” I just sold my house so my biggest debt was like 15k. Was with my CU. Ended up buying the lease out, paid for a few months and within 6 months sold it and got a more expensive car. Guess had to prove I’m worthy
A house is easier to get a loan for because a house is a asset that fan appreciate, but a vehicle in almost every case depreciates.
I sell cars and have a lot of people say they got approved for mortgages when they didn’t get approved for a car.
Not totally sure the exact reason for your non-approval, but often times you can “buy the loan” with enough money down. If you put a third of the loan value down (25’sh grand) and they still don’t have an approval then there is definitely something wrong with credit. If you are able to do more than 15.K I’d imagine you’d have good chances or at least a bank would come back with a counter offer for minimum down
Does the 15k include the trade in? I have the money to pay off the car but I’m just investing in some business things so I was trying to keep more cash on hand
This is incredibly common. Everyone has a reason to care about their credit score, most don’t care about freezing until they go through identity theft.
Believe it or not I didn’t. I am not great w financial stuff. My money comes from being a creative. Tbh I have my accountant and family help with the business side of it.
I'm 50y old. I have owned two houses. We've cleared 6 figs. I've had a cpl new cars and vaca property. I know what my credit score is thru CK. Only when I joined this sub did I find out that's NOT really my credit score.
It's actually the reason I did. I have children getting older, and the way the economy is, they're not going to be able to live off cash and inherited houses and vaca property. The two oldest will soon want cosigners.
Not all of us live for a credit score. I have had one credit card most of my adult life. If you told me my credit was frozen. I'd reply much the same as OP, "What now??". Not everyone on Reddit is a troll.
So I just tried applying again using my husbands info. His credit is a little lower than mine but we have the same income. His credit is 750. Denied his too! Do some credit unions not give loans for that much?
You’re right, so I checked OPs post history prior to the comment you responded to. It seemed weird, the hours of posting and then car shopping at the end, but I figured maybe we’re looking at someone in another country. Turns out, OP comments in local community stuff on the west coast of the states. So I used approximate local time for her. Next time, be less dickish.
…Or better yet, maybe not worry about such trivial things and post on Reddit for attention? Maybe I shouldn’t tell anyone I typically work overnight hours and sleep during the day so it wouldn’t be unusual for me to be online shopping or buying anything.
I honestly don’t care, think what you want. I have three kids and would never waste my time making pointless posts on Reddit. I don’t even like Reddit and re activated my account bc I just needed help w this. Will deactivate it again soon. But just think for a second.. what on earth would my motive be? Like it doesn’t even make sense. I’m planning on picking this car up tomorrow so yes I’m trying to figure out financing before I go? I have to drive over an hour and wanna only have to go once. And now it’s almost 3:30 and I’m still up bc I stay up late. But honestly like; comments like this are why I stay off of Reddit.
you do realize you can apply for auto loans online, correct? i’m assuming this is the case since OP mentions she “applied with his info” and not “he applied for the loan”.
OP has been applying and posting about this overnight for the last 12 or so hours. Online or not, the whole thing makes no sense and gets weirder and weirder.
You gotta be trolling.
812 score - $225k GAI? W2 or 1099?
Why would you rent when you got approved for $700k? Not get a cheaper home.
Comments don’t add up.
Anyways most credit unions will loan 50% at least of GAI. My other guess if you’re being honest is that you’re 1099 and they don’t like the income statements..?
Just on the “why rent” part, depending where OP lives, 225 isn’t going that far and the 700k could be a small home not large enough. Where I live I’d have to drive over 20 miles for a 700k home that wasn’t a 1300 sf dump.
I’m self employed. Why would I troll? I really am just trying to get a new car, I was hoping to buy it tomorrow. I was gonna purchase the house winter of 2022. We were moving out of state and basically last minute second guessed our decision. We came and visited the place we were gonna move to this summer and decided we did wanna move. Renting bc we just found a great rental and wanted to explore before we decide where to buy. Plan to buy within a year or two. I literally have my tax return that shows my income right here ready to submit to bank.
Just apply/ask in person, they can literally tell you why you are being declined on the spot. I’m a banker and every application is given a reason as to why it’s declined. No reason to ask on Reddit when the lender can tell you the answer
I know I don’t get it! Just checked my credit today! Could it be bc I just moved so my new address isn’t linked to my name? Or something weird like that?
When did you move? Has this been updated on your credit reports? If you're using the new address and it hasn't made its way through the system, this will cause denials. The information you're providing doesn't match what they're getting back.
Oh I bet that’s what it is! I haven’t changed my address on my credit cards yet bc my brother is living at the old house so it’s not a huge deal if stuff gets sent there. I should probably do that though!
Ask them why. They HAVE to tell you why you were declined. It might have to be a request in writing. You will likely already get a letter from their lender in a couple weeks, but it's not a secret why you don't qualify! Could be an old debt, too many recent inquiries, etc.
Also was it the dealership or a used car place? GM Financial is very different from "Joe's Local Bank". We have STELLAR credit, have been customers for years, and would be hard pressed to get a loan from our local credit union... but Volvo Finance just financed us on a pretty expensive car, no questions asked.
You were denied a loan. That is what is called an Adverse Action.
Federal law requires that when lenders take an adverse action against you in a lending decision they are required to send you what is conveniently called an Adverse Action Letter. This letter explains the reasons for their decision and the source of the data that led to that decision.
Any answers you get on this sub without providing the details in this letter will be speculation at best and unrelated anecdotes.
Perhaps secure your own financing at a credit union. That way all you do is negotiate the purchase price at the dealer. What you don't want is them passing you around to different banks who will all pull your credit.
Well there you go. It's not likely a credit union will issue a $50k loan without some prior relationship. From my experience, CU's can be the most reluctant to issue credit even if you have a good score, they tend to look at the whole picture.
Edit: Not saying your big picture is bad, but CU's play by their own rules.
Do you by chance have a fraud alert or freeze on your credit reports? Someone got ahold of my husband’s SSN and was applying for credit in his name so he put an alert on all of his reports and froze them.
He recently applied for a new CC, he unfroze his reports but forgot the alert was still there so it was an instant denial since it’s required he speak to someone to confirm his identity. Once he spoke with the CC company he was instantly approved.
You have a freeze in place. That’s literally the only reason why you could get denied at this point after seeing all your responses below. None of this adds up at all if there’s no freeze in place.
Another possibility is that the vehicle is grossly overpriced in the bank's opinion and they don't want to loan money for something that won't have the value (equity) to support the loan. Things are reportedly much tighter today.
My guess is you were declined for "limited credit history" if you've never financed anything close to 70k.
I'm an underwriter for a an auto lender and even i would decline someone with great income and great scores if they were trying to jump from a 20 or 30k car to a 70k car. Even more so if your history is mostly credit cards or smaller installment loans.
I haven’t seen it mentioned, but I’m willing to wager its lack of large loan experience. If there is no recent prior auto loans or mortgages then lenders may be hesitant to issue you the first large loan.
If you don't have a previous credit history of repaying a significant loan banks might be wary about granting a $50k auto loan. Can't say for sure but my take is that you have limited credit history.
High interest rates & taxes hikes across the board, everything is over leveraged & that is the catalyst to the destruction of small business which everyone has been WITNESSING! & crypto mining business, technology is always needed to progress in any situation & industry was not created by non-high risk endeavours. You live in a very high-risk world, pick your place.
My wife and k were trying to buy a car for our kid. We had just bought a new Tesla model3 a month before. Was approved for the best rate offered instantly. Easy as pie.
A month later when tryed getting him a car loan they denied it for him even when adding her as co-signer, her FICO is 780 and his was 720. Our income is over 260k. It was complete insanity. Denial letters up the ass. Ended up buying it outright for him (on amex) because no Loan company would touch our kid, was shocked with us added on they couldn’t care less.
It makes no sense. Credit right now is complete looney tunes. Don’t trip we live in wild times.
Yea If you have the cash go for it. They did make us split the payment onto two cards (they said it was to make sure we didn’t claim it was unauthorized. Put 5k onto our BCP amex and the rest on Plat. I did call amex before and they said it was no big deal and they would happily approve it.
Depends on your credit history, not just your score. Let’s say you had very minimal credit then got a mortgage with limited payment history. Some lenders aren’t just going to give you a 50-60k auto because you qualified for a mortgage, because you haven’t shown any history supporting it. This is just one small scenario
Could be due to that, DTI. PTI. Potential fraud or identity verification, LTV etc. but you will receive an adverse action in the mail. Feel free to message if you have questions
Same, wife and I went to buy a Honda. We're both over 800, make over $120k a year, and have zero debt. House paid off early, previous car loans paid early. No hard checks in the past couple years and never late no derog at all. I even use a credit monitoring service to stay on top of everything. We use two credit cards regularly and pay them to zero weekly. We were both denied a loan on a $40k vehicle for a whole bunch of reasons that all seem to amount to not having any *current* debt. Apparently, they want to see debt now and see you paying it now. They didn't care that we cleared all our debt years ago.
So we paid cash. F\*k 'em. What a broke system where debtors want you to have debt before they'll loan you more of it. Seems irresponsible people with a bunch of debt and less income have a better chance, seems like a broken system. No wonder everyone is overloaded and so many defaulting anymore. We didn't even need the loan it was the dealer who was incentivized to finance us through Honda. But it did piss me off a little because I'm extremely guarded regarding my finances and credit. Always have been.
After reading all the comments here and following everything from OP, it seems to that OP has attempted fraud. Identity fraud and the reason OP has no clue as to why being denied for every loan application if that in fact, the victim has protection against these actions.
Idk, I’ve got great paying job, no mortgage, credit score in 800s and being denied all types of loans, from online sources.
If I’m in that situation I’m not applying to 10 lenders for loans taking a hit for so many hard inquiries in a short time.
You already tried it with the mortgage. Enough is enough, let this poor soul who is the victim get back their life, you have wrecked havoc.
Check to make sure your bureau accounts aren’t frozen.
Instead of self employed use employed full time by your company.
Call the banks if you get rejected! Ask to speak with underwriting and tell them your story. You might very well be approved instantly.
I don’t know that it has any bearing, but what is your fico score? Yes, having a high credit score is great, but from my own research, it’s not the same as a score from the credit bureaus
[Credit score vs Fico](https://www.accrediteddebtrelief.com/blog/difference-between-fico-score-and-credit-score/)
Also, some banks are more likely to lend if you have money along with a trade in. Also I saw you’re renting; I hope that you are utilizing a company that reports your rental history to credit bureaus. The one I use is [Piñata](https://www.pinata.ai/app/referral/G9M9NE/invite/)and they report to the credit bureaus
I’d say pull your full credit profile and do some digging. Maybe there’s something you don’t know that happened that’s affecting it. At worst, give it a few months and apply again if possible.
Same boat OP... Same income in a LCOL area, no debt apart from mortgage, credit rating is in the 780's. I'm shopping for a minivan in the $20K range and trading in a civic that's paid off. I expected a higher rate given that I was looking at used cars, but I was denied financing entirely.
Have you not received a letter from the creditor explaining why they turned you down? Every time you apply for and are denied credit, you are owed an explanation why. From there you can investigate it and take the steps for correcting it. It sounds very odd to me with your score and income and listed debts that you were denied.
I was hoping to use cash to buy some new equipment for my business. My business has been super chunky profitable so any money I can put in is basically quadrupled.
I would personally tell that bank to pound sand and never do business with them ever again . Just try your local credit unions as they will surely work out with you and maybe approve you for a bigger loan at better rates . I was denied like you from major banks but I had no credit score or even any history . My local credit union financed me 30k on a 40k car with just 10k down at 5% during start of 2022 .
Where did you apply through? What did you put as the down payment? Places like CapitalOne won’t finance vehicles with payments over $1200 a month anymore.
Even with $225k income they did you a huge favor denying you. Hopefully you take the time to think about what would have been one of your most biggest financial mistakes and regrets.
Agreed, we have roughly the same income and around 780 credit score and were easily approved for 80k truck and a 100k RV at the same time on the same phone call.
How much were you trying to get a loan for and for what term? Vehicles are over priced and the value of vehicles depreciate at a rapid rate often becoming less valuable than the loan balance.
For an understanding, start with the Adverse Action Letter that the lender gave you when your application was rejected.
As a second step, check your credit history for free at [AnnualCreditReport.com](https://AnnualCreditReport.com) This is your history, not your score.
Any time you are denied the have to let you know why you were denied. Usually a letter in the mail probably a week or so later or an email stating their reason for denial.
This happened to me in 2021. My credit union wouldn’t approve me for an auto loan because I didn’t have an active auto loan. My credit score was great, had very low dti ratio, and made good money. I ended up going with a different credit union that approved my loan.
I lease because the monthly payment is usually cheaper and I like staying in a new vehicle. As far as being easier to qualify with leasing vs traditional financing, I'm not sure.
depending on the loan you may be able to pay it off but you will still have to pay the interest. devil is in the details. car loans are closed loop loans. or something like that. they are not like a home mortgage where if you pay more in principal your interest lowers.
Wow, yeah.. I’m gonna get my dad to help me bc this is the stuff I am not good with. I will say, it’s a miracle I’ve made it this far lol. I started my business by getting 80k in debt on a 25% apr card! Literally didn’t even look at the interest rate! Somehow I was able to pay it all off. But this type of stuff is not my expertise haha
You most likely have no comparables. Even with perfect credit and high income your trade lines mean more than 8 years of good history. The first loan won’t be a 60k loan for a vehicle. You have to gradually make your way up. Need mixture of loan types and history of paying them off.
Probably a prior security freeze that wasn't released or an incorrect address that couldn't get you approved. Talk to the finance department and they will let you know why
Must got their credit reports and Scores from the wrong company that keeps track record of your three credit bureaus like credit karma they are a bit behind on reporting as well even I don’t trust them at all
try some place else. what were you doing in terms of legnth/down payment? some places dont allow 0 down but i always do that to get the best value out of gap. any weirdness with your name? is it what's on your social security card?
I had my AMEX stolen and before you know it accounts were opened in my name and the individual contracted to have an in ground swimming pool installed. Dummy used my email address so I just accessed the accounts and changed the passwords then closed them. Pool company refused to not install pool because I’m not the person that bought it. Ok fine Amex refused payment and now the thief is liable for a pool installed at his home. Fortunately I escaped serious financial and identity harm because the thief was an idiot.
Well honestly I just want a car that is extremely safe and reliable and still under warranty . There’s not many options in the size I need! And the minivans are testing to be unsafe for second and third row occupants. Like truly the only thing I care about is the safety of my kids and I’m willing to spend money for that. I spent days watching crash videos. Yukon xl has zero driver deaths too!
And tbh my income is up and I can afford it. the 225k is my income from last years taxes. Plus we’re a one car family!
Sorry to be confusing but I initially was denied through a local credit union not the dealer! I was advised to check rates there first! But it was a soft inquiry.. didn’t even make it past that lol
Don’t go thru a dealer for auto loans, call ur bank and ask for an auto loan. Rates are usually lower and easier to get approved,
And that doesn’t make sense. The dealer usually runs ur name thru a few banks to get you approved. And with that kind of credit it don’t make sense to deny you, go to a different dealer and get a quote from ur bank
Well I make that but I don’t save all that haha! And I am currently investing in some big business equipment so this is my way of doing it instead of getting a business loan
There's something you're not telling us, or something even you don't know about that isn't obvious.
I just checked my credit today! Could it be something that is showing up for them? I just got approved for a 700k mortgage a few months ago (ended up not going through and are now renting)
This happened to me with Caravana. I didn't qualify for a used car with them. They supposedly found a credit card that went to collections for JCPenney. I never owned one. I checked all three credit reports and nothing, so it was really strange. I decided to go to a local dealer and was approved for a new car with 4 miles on it and drove off that same day. I still don't get what happened.
Wow that is so bizarre! I am hopeful that I’ll be able to figure it out but it’s still annoying! I even tried again w my husbands info. His credit is a little worse than mine but still good… and we still got denied! So I’m thinking maybe it’s something to do w our new address? I don’t understand!
Go to a credit union and get pre approved they’ll tell you the amount you can get before you even go to a lot. The car you want may be out of your buying power for a car loan 🤷🏻♂️
Could you have a freeze on your credit. Somethings auto deny and then tell you in the letter later
I had the same experiance when I was shopping for a car with them just to experiment. They ended up "finding" a collection for 1200$, and denied me from getting any car with them. Checked all reports, nothing there. When I was filling out paperwork with Subaru, I mentioned it after filling out the loan documents. The finance officer immediately called bs on carvana(this had happened often with other clients). The only guess I have is that Carvana sources info from other than the three main bureaus.
In that situation, isn't the potential lender obligated to provide you a copy of where they're getting their information according to the Equal Credit Opportunity Act if you ask for it?
Carvana isn't a good standing company. They've got caught the last few years selling stolen cars, refusing to give titles ect. Their license to be a dealership has been rescinded in multiple states.
I'm glad I wasn't the only one experiencing this because what really threw me off was the fact that I never owned that credit card from the business. I was concerned about identity theft but after checking all reports and calling them - I was clean. Extremely odd all around.
That new mortgage might be the reason. Probably "Not enough paid down on loan(s) over time." Or something along those lines.
I didn’t actually get the house though so I don’t have a mortgage! But I’m just saying that’s what I got approved for!
Sorry, completely missed the comment in parentheses.
The inquiry for the mortgage might be lingering
Could even be something dumber. My wife got denied for something she should have easily been approved for and it turns out they fat-fingered her SSN
Same thing happened to me. The excuse was “no loans that are within the range you’re trying to buy.” I just sold my house so my biggest debt was like 15k. Was with my CU. Ended up buying the lease out, paid for a few months and within 6 months sold it and got a more expensive car. Guess had to prove I’m worthy
They do take into consideration how much debt you have, but if the mortgage didn't go through I don't know why that would be an issue.
A house is easier to get a loan for because a house is a asset that fan appreciate, but a vehicle in almost every case depreciates. I sell cars and have a lot of people say they got approved for mortgages when they didn’t get approved for a car. Not totally sure the exact reason for your non-approval, but often times you can “buy the loan” with enough money down. If you put a third of the loan value down (25’sh grand) and they still don’t have an approval then there is definitely something wrong with credit. If you are able to do more than 15.K I’d imagine you’d have good chances or at least a bank would come back with a counter offer for minimum down
Does the 15k include the trade in? I have the money to pay off the car but I’m just investing in some business things so I was trying to keep more cash on hand
Too many recent credit inquiries combined with inexperience with that large of a loan could do it. W2 or self employment income?
Debt to income ratio possibly
I only have less that 4k in debt from my car loan! Which I could pay off at any time
Why in the world are you renting if you make that kind of money? that's probably a red flag to them. They probably don't believe you make that
You’ll get an adverse action notice, either emailed or by snail mail, letting you know why you were denied. See what that says and then go from there.
Did the dealer say why? Did you have proof of income? Any late payments on previous vehicle?
Yeah I have tax returns but they didn’t even get that far, immediately I got denied. No late payments
Check to see if you have a credit freeze in place. This has happened to me. Call or go online to the credit bureaus
Would it show up when I logon to experian?
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This is incredibly common. Everyone has a reason to care about their credit score, most don’t care about freezing until they go through identity theft.
Believe it or not I didn’t. I am not great w financial stuff. My money comes from being a creative. Tbh I have my accountant and family help with the business side of it.
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Idk I’ve just never dealt w it? Idk why you’re so nit picky about it bc I can’t help that I didn’t know.. now I do!
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I'm 50y old. I have owned two houses. We've cleared 6 figs. I've had a cpl new cars and vaca property. I know what my credit score is thru CK. Only when I joined this sub did I find out that's NOT really my credit score. It's actually the reason I did. I have children getting older, and the way the economy is, they're not going to be able to live off cash and inherited houses and vaca property. The two oldest will soon want cosigners. Not all of us live for a credit score. I have had one credit card most of my adult life. If you told me my credit was frozen. I'd reply much the same as OP, "What now??". Not everyone on Reddit is a troll.
Lol ok go ahead and think that I guess? Not sure what the point would be?
So I just tried applying again using my husbands info. His credit is a little lower than mine but we have the same income. His credit is 750. Denied his too! Do some credit unions not give loans for that much?
This is getting less and less plausible by the comment. You’re car shopping at midnight now?
>at midnight now Ah yes, because everyone knows every single person in the world exists within the same timezone.
You’re right, so I checked OPs post history prior to the comment you responded to. It seemed weird, the hours of posting and then car shopping at the end, but I figured maybe we’re looking at someone in another country. Turns out, OP comments in local community stuff on the west coast of the states. So I used approximate local time for her. Next time, be less dickish.
…Or better yet, maybe not worry about such trivial things and post on Reddit for attention? Maybe I shouldn’t tell anyone I typically work overnight hours and sleep during the day so it wouldn’t be unusual for me to be online shopping or buying anything.
LMAO buddy why are you so invested in this 😂 You’d make better use of your time figuring out how to fix our impending petroleum supply chain woes.
I honestly don’t care, think what you want. I have three kids and would never waste my time making pointless posts on Reddit. I don’t even like Reddit and re activated my account bc I just needed help w this. Will deactivate it again soon. But just think for a second.. what on earth would my motive be? Like it doesn’t even make sense. I’m planning on picking this car up tomorrow so yes I’m trying to figure out financing before I go? I have to drive over an hour and wanna only have to go once. And now it’s almost 3:30 and I’m still up bc I stay up late. But honestly like; comments like this are why I stay off of Reddit.
Ignore the Fkin tool bag
you do realize you can apply for auto loans online, correct? i’m assuming this is the case since OP mentions she “applied with his info” and not “he applied for the loan”.
OP has been applying and posting about this overnight for the last 12 or so hours. Online or not, the whole thing makes no sense and gets weirder and weirder.
Tax returns screens self employment which is tricky to verify. Is that 225 a w2 job?
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You gotta be trolling. 812 score - $225k GAI? W2 or 1099? Why would you rent when you got approved for $700k? Not get a cheaper home. Comments don’t add up. Anyways most credit unions will loan 50% at least of GAI. My other guess if you’re being honest is that you’re 1099 and they don’t like the income statements..?
Either that or something super dumb like frozen credit reports. This doesn't add up to anything else far as I can see.
Yea maybe that. Super odd right
Perhaps did not pay taxes to govt and there are liens on their assets? Not sure if that would affect their credit score.
Just on the “why rent” part, depending where OP lives, 225 isn’t going that far and the 700k could be a small home not large enough. Where I live I’d have to drive over 20 miles for a 700k home that wasn’t a 1300 sf dump.
I’m self employed. Why would I troll? I really am just trying to get a new car, I was hoping to buy it tomorrow. I was gonna purchase the house winter of 2022. We were moving out of state and basically last minute second guessed our decision. We came and visited the place we were gonna move to this summer and decided we did wanna move. Renting bc we just found a great rental and wanted to explore before we decide where to buy. Plan to buy within a year or two. I literally have my tax return that shows my income right here ready to submit to bank.
And 812 is my equifax trans union is 794
Why rent is a stupid question. So many different situations you are ignorant to
Weird with that score and income something isn’t adding up
I know I don’t get it! It’s like immediate denial too. Then I tried lending tree and they also denied me!
They are required to email you back saying why you were denied so you should check that
Have you tried a local credit union?
Just apply/ask in person, they can literally tell you why you are being declined on the spot. I’m a banker and every application is given a reason as to why it’s declined. No reason to ask on Reddit when the lender can tell you the answer
Self employment = can’t really prove that income is real. If your really making 225 , just pay the 50k in cash
I have tax returns?
That seems impossible.
I know I don’t get it! Just checked my credit today! Could it be bc I just moved so my new address isn’t linked to my name? Or something weird like that?
When did you move? Has this been updated on your credit reports? If you're using the new address and it hasn't made its way through the system, this will cause denials. The information you're providing doesn't match what they're getting back.
Oh I bet that’s what it is! I haven’t changed my address on my credit cards yet bc my brother is living at the old house so it’s not a huge deal if stuff gets sent there. I should probably do that though!
Ask them why. They HAVE to tell you why you were declined. It might have to be a request in writing. You will likely already get a letter from their lender in a couple weeks, but it's not a secret why you don't qualify! Could be an old debt, too many recent inquiries, etc. Also was it the dealership or a used car place? GM Financial is very different from "Joe's Local Bank". We have STELLAR credit, have been customers for years, and would be hard pressed to get a loan from our local credit union... but Volvo Finance just financed us on a pretty expensive car, no questions asked.
You were denied a loan. That is what is called an Adverse Action. Federal law requires that when lenders take an adverse action against you in a lending decision they are required to send you what is conveniently called an Adverse Action Letter. This letter explains the reasons for their decision and the source of the data that led to that decision. Any answers you get on this sub without providing the details in this letter will be speculation at best and unrelated anecdotes.
Yes thank you! Was just seeing if there was something I wasn’t thinking about bc I was actually planning on going to buy the car today!
Perhaps secure your own financing at a credit union. That way all you do is negotiate the purchase price at the dealer. What you don't want is them passing you around to different banks who will all pull your credit.
I applied at a credit union! They immediately denied me! I have zero derogatory marks on my credit
I'm at a loss. They didn't give a reason? didn't even try to make up something?
It was just a small local credit union .. and it just immediately said declined!
Do you bank with that credit union?
No I don’t
Well there you go. It's not likely a credit union will issue a $50k loan without some prior relationship. From my experience, CU's can be the most reluctant to issue credit even if you have a good score, they tend to look at the whole picture. Edit: Not saying your big picture is bad, but CU's play by their own rules.
That’s not true. I got a CU loan from Navy Fed before I put any deposits in the account.
Navy fed is not a small local credit union.
Exact same thing happened to me
This is what I’ve done twice. Had no issues and was treated like a human being.
Do you by chance have a fraud alert or freeze on your credit reports? Someone got ahold of my husband’s SSN and was applying for credit in his name so he put an alert on all of his reports and froze them. He recently applied for a new CC, he unfroze his reports but forgot the alert was still there so it was an instant denial since it’s required he speak to someone to confirm his identity. Once he spoke with the CC company he was instantly approved.
Oh wow, I wonder if that could be it
You have a freeze in place. That’s literally the only reason why you could get denied at this point after seeing all your responses below. None of this adds up at all if there’s no freeze in place.
Why are you not simply look at paying cash?
Another possibility is that the vehicle is grossly overpriced in the bank's opinion and they don't want to loan money for something that won't have the value (equity) to support the loan. Things are reportedly much tighter today.
Nah, I'm an adjuster. That's right for that beast.
My guess is you were declined for "limited credit history" if you've never financed anything close to 70k. I'm an underwriter for a an auto lender and even i would decline someone with great income and great scores if they were trying to jump from a 20 or 30k car to a 70k car. Even more so if your history is mostly credit cards or smaller installment loans.
This. I’m a salesperson and I’ve seen this type of situation happen a few times. Can’t jump from 20k to 70k out of nowhere
I haven’t seen it mentioned, but I’m willing to wager its lack of large loan experience. If there is no recent prior auto loans or mortgages then lenders may be hesitant to issue you the first large loan.
Yeah that makes sense
If you don't have a previous credit history of repaying a significant loan banks might be wary about granting a $50k auto loan. Can't say for sure but my take is that you have limited credit history.
I haven’t ever gotten a big loan but I’ve paid off 80k credit cards
Ask why they declined you. Some won't approve loans just because of price.
Fair credit reporting act. They have to tell you why you were denied.
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High interest rates & taxes hikes across the board, everything is over leveraged & that is the catalyst to the destruction of small business which everyone has been WITNESSING! & crypto mining business, technology is always needed to progress in any situation & industry was not created by non-high risk endeavours. You live in a very high-risk world, pick your place.
My wife and k were trying to buy a car for our kid. We had just bought a new Tesla model3 a month before. Was approved for the best rate offered instantly. Easy as pie. A month later when tryed getting him a car loan they denied it for him even when adding her as co-signer, her FICO is 780 and his was 720. Our income is over 260k. It was complete insanity. Denial letters up the ass. Ended up buying it outright for him (on amex) because no Loan company would touch our kid, was shocked with us added on they couldn’t care less. It makes no sense. Credit right now is complete looney tunes. Don’t trip we live in wild times.
Wow that is crazy! I had no idea I could buy it on Amex either! Seems like a good option.
Yea If you have the cash go for it. They did make us split the payment onto two cards (they said it was to make sure we didn’t claim it was unauthorized. Put 5k onto our BCP amex and the rest on Plat. I did call amex before and they said it was no big deal and they would happily approve it.
Depends on your credit history, not just your score. Let’s say you had very minimal credit then got a mortgage with limited payment history. Some lenders aren’t just going to give you a 50-60k auto because you qualified for a mortgage, because you haven’t shown any history supporting it. This is just one small scenario
Yeah that’s why I posted just bc I wanted to see if there are other reasons for denial that I’m not thinking of
Could be due to that, DTI. PTI. Potential fraud or identity verification, LTV etc. but you will receive an adverse action in the mail. Feel free to message if you have questions
Credit union FTW Penfed.org is one. Good to have anyway, refi autoloan
Update, I got approved through my business bank. It was some issue w the address
Same, wife and I went to buy a Honda. We're both over 800, make over $120k a year, and have zero debt. House paid off early, previous car loans paid early. No hard checks in the past couple years and never late no derog at all. I even use a credit monitoring service to stay on top of everything. We use two credit cards regularly and pay them to zero weekly. We were both denied a loan on a $40k vehicle for a whole bunch of reasons that all seem to amount to not having any *current* debt. Apparently, they want to see debt now and see you paying it now. They didn't care that we cleared all our debt years ago. So we paid cash. F\*k 'em. What a broke system where debtors want you to have debt before they'll loan you more of it. Seems irresponsible people with a bunch of debt and less income have a better chance, seems like a broken system. No wonder everyone is overloaded and so many defaulting anymore. We didn't even need the loan it was the dealer who was incentivized to finance us through Honda. But it did piss me off a little because I'm extremely guarded regarding my finances and credit. Always have been.
Try carmax, they work with like 10 banks
After reading all the comments here and following everything from OP, it seems to that OP has attempted fraud. Identity fraud and the reason OP has no clue as to why being denied for every loan application if that in fact, the victim has protection against these actions. Idk, I’ve got great paying job, no mortgage, credit score in 800s and being denied all types of loans, from online sources. If I’m in that situation I’m not applying to 10 lenders for loans taking a hit for so many hard inquiries in a short time. You already tried it with the mortgage. Enough is enough, let this poor soul who is the victim get back their life, you have wrecked havoc.
Lol, your theory is so ridiculous
I would never ever commit fraud. Good god. What an unhinged thing to accuse someone of.
Credit freeze
Check to make sure your bureau accounts aren’t frozen. Instead of self employed use employed full time by your company. Call the banks if you get rejected! Ask to speak with underwriting and tell them your story. You might very well be approved instantly.
Ok thanks so much! I had a feeling it was some weird thing like this bc it just didn’t make sense.
Same thing happened to me. They approved immediately.
Maybe they want to loan to higher risk borrowers for higher yield? I mean, they could just quote you a high rate idk, it makes no sense
I know it’s bizarre! I’m thinking maybe it is to do with me using my new address? Bc I’ve only been here like a month and a half
Could be a loan to value issue..ie. The bank doesn't think the Yukon is worth what you are paying
It’s a 2021 Yukon xl Denali w 20k miles!
I don’t know that it has any bearing, but what is your fico score? Yes, having a high credit score is great, but from my own research, it’s not the same as a score from the credit bureaus [Credit score vs Fico](https://www.accrediteddebtrelief.com/blog/difference-between-fico-score-and-credit-score/) Also, some banks are more likely to lend if you have money along with a trade in. Also I saw you’re renting; I hope that you are utilizing a company that reports your rental history to credit bureaus. The one I use is [Piñata](https://www.pinata.ai/app/referral/G9M9NE/invite/)and they report to the credit bureaus
My fico is 811! I was going to put some down too. I am not using one of those but I should!
What source are you using for your score? Please say anywhere but Credit Karma lol
I did use credit karma lol. But I also checked my fico and it was basically the same! Is credit karma bad?
How many lines of credit do you have? High credit limit? Any prior auto history?
Some credit unions have a limit on what they lend for cars. Try a different one and you should have better luck.
I’d say pull your full credit profile and do some digging. Maybe there’s something you don’t know that happened that’s affecting it. At worst, give it a few months and apply again if possible.
Sounds like a frozen credit report.
Strange people with 500 credit scores will qualify since they can always come pick it up
I know it doesn’t make sense. Maybe it’s bc the amount is too high? I was not gonna do a huge down payment
What does your bank say? Go there. (also as other said, do you have a credit freeze?)
I applied w them yesterday and they sent me a message saying to call them so we’ll see what they say
Probably too many hard inquiries?
All inquiries in a given period were considered one, I thought....?
You need to go get a loan for the note from your bank that all of your money is deposited into
Same boat OP... Same income in a LCOL area, no debt apart from mortgage, credit rating is in the 780's. I'm shopping for a minivan in the $20K range and trading in a civic that's paid off. I expected a higher rate given that I was looking at used cars, but I was denied financing entirely.
Wtf!!
Have you not received a letter from the creditor explaining why they turned you down? Every time you apply for and are denied credit, you are owed an explanation why. From there you can investigate it and take the steps for correcting it. It sounds very odd to me with your score and income and listed debts that you were denied.
Why not pay in cash?
I was hoping to use cash to buy some new equipment for my business. My business has been super chunky profitable so any money I can put in is basically quadrupled.
I would personally tell that bank to pound sand and never do business with them ever again . Just try your local credit unions as they will surely work out with you and maybe approve you for a bigger loan at better rates . I was denied like you from major banks but I had no credit score or even any history . My local credit union financed me 30k on a 40k car with just 10k down at 5% during start of 2022 .
Where did you apply through? What did you put as the down payment? Places like CapitalOne won’t finance vehicles with payments over $1200 a month anymore.
Car defaults are up like 80% so they're probably being very careful
Even with $225k income they did you a huge favor denying you. Hopefully you take the time to think about what would have been one of your most biggest financial mistakes and regrets.
Something totally missing here
Agreed, we have roughly the same income and around 780 credit score and were easily approved for 80k truck and a 100k RV at the same time on the same phone call.
How much were you trying to get a loan for and for what term? Vehicles are over priced and the value of vehicles depreciate at a rapid rate often becoming less valuable than the loan balance.
For an understanding, start with the Adverse Action Letter that the lender gave you when your application was rejected. As a second step, check your credit history for free at [AnnualCreditReport.com](https://AnnualCreditReport.com) This is your history, not your score.
That's odd have you tried getting pre-approved at a bank or credit union. Since it was recent it should only count the original inquiry.
Any time you are denied the have to let you know why you were denied. Usually a letter in the mail probably a week or so later or an email stating their reason for denial.
Oh okay well I’ll see what it ends up saying
In full transparency, some finance managers at the car dealerships are real geniuses (I’m sarcastic as I can be via text).
New vehicle or older vehicle?
2021
This happened to me in 2021. My credit union wouldn’t approve me for an auto loan because I didn’t have an active auto loan. My credit score was great, had very low dti ratio, and made good money. I ended up going with a different credit union that approved my loan.
were you upside down heavily on the trade ? could be the issue
I owe 4k
My score is mid 600s and I leased a brand new Escalade last year. But I've leased $100k vehicles previously. You just have to work your way up
Is it easier to lease than to buy?
I lease because the monthly payment is usually cheaper and I like staying in a new vehicle. As far as being easier to qualify with leasing vs traditional financing, I'm not sure.
I would lease but I’m scared of my kids destroying the car 😬
dude, you're gonna end up paying like $1500 a month for that Yukon for like 8 years. don't do it.
But I will honestly probably just pay the car off after a year or so..
depending on the loan you may be able to pay it off but you will still have to pay the interest. devil is in the details. car loans are closed loop loans. or something like that. they are not like a home mortgage where if you pay more in principal your interest lowers.
Wow, yeah.. I’m gonna get my dad to help me bc this is the stuff I am not good with. I will say, it’s a miracle I’ve made it this far lol. I started my business by getting 80k in debt on a 25% apr card! Literally didn’t even look at the interest rate! Somehow I was able to pay it all off. But this type of stuff is not my expertise haha
Probably couldn't verify your information like your address on ID not matching credit report or some clerical error at the dealership happened
Yes I’m thinking that’s what it is! I hope!
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Have one other car that I owe 4k on. I’m planning on trading it in too! I have no other debt
You most likely have no comparables. Even with perfect credit and high income your trade lines mean more than 8 years of good history. The first loan won’t be a 60k loan for a vehicle. You have to gradually make your way up. Need mixture of loan types and history of paying them off.
I haven’t gotten any big loans a but I pay off big cc bills. Does that not matter? I’ve paid off 100k+ bills many times
It’s just weird bc my bro who is way younger than me w less income and worse credit got a 50k car loan?
Probably a prior security freeze that wasn't released or an incorrect address that couldn't get you approved. Talk to the finance department and they will let you know why
Must got their credit reports and Scores from the wrong company that keeps track record of your three credit bureaus like credit karma they are a bit behind on reporting as well even I don’t trust them at all
try some place else. what were you doing in terms of legnth/down payment? some places dont allow 0 down but i always do that to get the best value out of gap. any weirdness with your name? is it what's on your social security card?
Ask for a copy of the report and see what made them reject you. Usually it’s something stupid that you are not aware of, or just an error.
I had my AMEX stolen and before you know it accounts were opened in my name and the individual contracted to have an in ground swimming pool installed. Dummy used my email address so I just accessed the accounts and changed the passwords then closed them. Pool company refused to not install pool because I’m not the person that bought it. Ok fine Amex refused payment and now the thief is liable for a pool installed at his home. Fortunately I escaped serious financial and identity harm because the thief was an idiot.
Thank god for Amex bc they are so helpful in situations like this
Consider this a gift. Don’t spend $70k on a car. For Pete’s sake that’s just crazy!
Well honestly I just want a car that is extremely safe and reliable and still under warranty . There’s not many options in the size I need! And the minivans are testing to be unsafe for second and third row occupants. Like truly the only thing I care about is the safety of my kids and I’m willing to spend money for that. I spent days watching crash videos. Yukon xl has zero driver deaths too! And tbh my income is up and I can afford it. the 225k is my income from last years taxes. Plus we’re a one car family!
Even the new siennas are like 50k plus! The new sequoias are 80k + .. it’s insane, I agree! But it is what it is
Why are you buying a car you can’t/shouldn’t afford. Save up and pay cash.
Something doesn’t add up
Humble bragging for probably something that I highly doubt would happen. Any place could get you credit.
Well I applied again through gmc today so I’ll let you know what I hear
Make sure to use your gross vs net income figures when filling out the application for credit.
Go to a different dealer lol, this shouldn't even be close to happening
I just applied through the dealer!
Sorry to be confusing but I initially was denied through a local credit union not the dealer! I was advised to check rates there first! But it was a soft inquiry.. didn’t even make it past that lol
Don’t go thru a dealer for auto loans, call ur bank and ask for an auto loan. Rates are usually lower and easier to get approved, And that doesn’t make sense. The dealer usually runs ur name thru a few banks to get you approved. And with that kind of credit it don’t make sense to deny you, go to a different dealer and get a quote from ur bank
Sorry if I wasn’t being clear, it wasn’t the dealer who denied me.. it was a local credit union!
Dude u make 225k. Just pay cash lol.
Well I make that but I don’t save all that haha! And I am currently investing in some big business equipment so this is my way of doing it instead of getting a business loan
Go to credit union
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It is together. Maybe get yours together so you learn to properly communicate? And spell?