Banks/Credit Scores: How do you appease them today? - ModernCamaro.com - 5th Generation Camaro Enthusiasts
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post #1 of 37 Old 06-22-2010, 09:18 AM Thread Starter
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Question Banks/Credit Scores: How do you appease them today?

As a few of you had heard I tried to buy a 2000 T/A with 30K on the clock. With an 800 Credit score I was all set to go except for one thing: my credit had no 'substance'.

Essentially I believe what they were telling me was that even though my credit was excellent on paper, there was nothing there to back it up. My question and that of probably a few younger people here on the site would be how do we as kids fresh out of school build our credit aside from say making payments on a credit card or student loan?

Also, how long does it usually take for someone to eventually impact their score through payments of loans and other financial gobbledegook?

I ask this because it stumped even my parents on why I was denied approval. Their and my solution was to begin paying my loans early (which I can I have the capital) to put some 'meat' on the 'bones' of my credit.

Good idea? Bad idea? Got some other ideas? I open this to anyone who also has a question about this both newbie and long time member. Because if we're going to be buying Camaros and whatnot.. I think it's a good thing to know and to keep confined to one thread for future refrence.


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post #2 of 37 Old 06-22-2010, 09:45 AM
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i was in the same boat when i bought my camaro.

when i first ordered they said i had no problem with my credit and they approved me to put a deposit down on my car.

when i went to pick it up, they gave me the runaround saying eventhough my credit score and income are good, there just isn't enough credit history and the bank is going to need a co-signer.

so i asked my dad to co-sign with me, he had no problem cuz he knew i was able to make the payments. so he co-signs, the financial guy at the dealership goes and runs the numbers, comes back and says the bank is only approving you for this much, so you have to put more down.

i got pissed! i told him, you guys said it was no problem when i came in to order and you ran my credit, now all this ! i told him he can take that extra money you want me to put down out of that little "market adjustment" you guys put on the car.

the manager got involved and he basically said he did not care if he sold it to me today or if i walked away, he wasn't moving the price cuz the car was fresh off the line and he could easily sell it by the end of the week to someone else. i think he preferred me to walk away so he could pocket my $2000 deposit!

i wasn't going to wait another 3-4 months for another one from a different dealership so i dipped into the modifications fund and took the car home that day with my middle finger high in the air at the stealership.

to this day i wish i woulda known about this site just 3 months earlier, i would have ordered from one of our dealership sponsors, probably Eric since he is closest location to me, and saved a few bucks at the same time.



but back to your other questions, you might wanna try a different bank, some are more lenient than others. but with these financial times, it is probably easier just to get a co-signer.

student loans ruin your credit history, they f***'d mine up. they are reported to credit bureau's and defer the payments until you graduate, well that loan stays "maxed out" on your credit report until you start paying for it. and even if you start paying early, your first payments only pay 100% of the interest the loan has accrued since you got it. so eventhough your making payments, your loan amount has not budged until you pay off the accrued interest.

once you get one car loan payed off, student loans under control, and low to zero credit card balances on your credit history, i think the banks will be more gentle in the future. what they consider "new credit" doesn't go away until you have at least 7 years of good credit.

i've already paid off a lot of my loans in just under a year by paying double the minimum. sure i could use that extra $1000 each month and put it towards more performance stuff or wheels, but i'd rather pay the car and student loans off sooner rather than waste money paying more interest later.

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post #3 of 37 Old 06-22-2010, 09:50 AM
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my goal in the future is to not take a loan out on a depreciable asset like vehicles. but that won't come for another decade or two for me!!! i use my debit card for everything, and unless it is an emergency i won't use my only credit card.

i just hope i don't get this problem when i mortgage my first house in a few years!

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post #4 of 37 Old 06-22-2010, 10:54 AM
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If your parents will cosign, then that's the easy way to start. Otherwise, you've just got to use credit cards wisely. Build a history -- it takes some time, but we've all gone through it.

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post #5 of 37 Old 06-22-2010, 12:03 PM
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Quote:
Originally Posted by demonspeed View Post
If your parents will cosign, then that's the easy way to start. Otherwise, you've just got to use credit cards wisely. Build a history -- it takes some time, but we've all gone through it.


very true. I always make my payments a week early and dont use creditcards unless I have the money already.
What helped me was making a house payment that gave me tremendous credit.


If your parents or someone family wise can co-sign that would be Great for you.
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post #6 of 37 Old 06-22-2010, 12:22 PM
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I had a 720 score when I went to apply for the loan for my car..but the lack of a credit history kept me from getting the loan. My dad (who has over 800) cosigned and I got it without a problem.



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post #7 of 37 Old 06-22-2010, 12:26 PM Thread Starter
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They cosigned for both my and my brothers student loans. They're strapped. I couldn't do it to them... and asking an aunt or uncle would seem.. douchey.

Also got the lowdown from the finance office: banks think student loans aren't credit and the car is too old.

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post #8 of 37 Old 06-22-2010, 12:39 PM
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Quote:
Originally Posted by Zabo View Post
They cosigned for both my and my brothers student loans. They're strapped. I couldn't do it to them... and asking an aunt or uncle would seem.. douchey.

Also got the lowdown from the finance office: banks think student loans aren't credit and the car is too old.
ahh! yea once a car reaches a certain age, they won't give you financing for it.

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post #9 of 37 Old 06-22-2010, 12:46 PM
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They shouldn't be strapped if you're making the payments.



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post #10 of 37 Old 06-22-2010, 12:55 PM
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It's also good to know that if you have the money to pay for your car in full don't first get the loan and then pay it off the first month. not only will that boost your credit score you would have not really paid any intrest for it anyway.Had you wrote out a check at the dealership that would have never helped your credit score or help build your history.Banks love to see history of loans paid and closed.
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