With a credit score greater then 825, why did I get turned down for an auto loan?

tharealmegaman · 5 months

How old are you? An ex who was 20 at the time had a score in the 790's despite not having many accounts and no older accounts.

High credit doesn't always mean approval. They also look at debt to income and usage of different types of credit.

bmaharg · 5 months

There is no way your score is that high without a loan,

csguydn · 5 months

Where are you getting >825 from? How long have you had credit? I'm skeptical it can be this high with no prior loans or a mortgage.

Typically "too few accounts currently paid as agreed" is a major problem. This indicates that you have multiple accounts that are or have been delinquent. Are you late on utility payments?

How long has it been since you've pulled your credit reports?

kernel_task · 5 months

How much did you put in as your income? That doesn't come from credit reports and is not related to your credit score, but it's just as important. You owe $12k already and they might think it's too much in relation to your monthly income if you were to add another ~$20k loan.

zzcm · 5 months

what do you mean you have a balance of $12k that is not due yet? outstanding credit balance is usually done monthly on credit reports, not real time so that makes me think you have that 12k balance for a while. that's probably why you are rejected. too much outstanding debt.

CodeOfKonami · 5 months

Not having multiple sources of credit and not having enough history with those sources is a risk to them.

They want to see you playing the field and getting it all right. One card you always pay off on time is a small sample size in their eyes.

Get a low-interest loan (for whatever, doesn't matter, put the money in a high interest account for all they care) and pay it off regularly. Get another credit card and put one set of bills on one and another with the other. Pay them both off regularly.

Also, look into the "not paid as agreed" message - you can usually get it forgiven if you don't have a history of delinquency; maybe you just forgot a payment or it got lost in the mail - shit happens.

Perfect credit is not the same as a comprehensive credit history. I think most banks will give more of a loan to someone with a few bumps in a very large, long road than someone with a perfect looking sidewalk.

zthirtytwo · 5 months

It most likely is your credit cards that are doing this. You say you have two cards; one with $20k limit and a $13k balance and another with $17k limit and a $6k balance. A credit card is an unsecured loan. You have over half your credit leveraged here at $19k with the risk of you deciding to spend another $18k tomorrow if you wanted to. I am not a bank, but if I was this makes you potentially a high risk to invest my money into knowing you could get yourself way over your head in debts and then stop paying the loan I gave you.

You should also let us know what your salary is. If you make $30-35 a year currently you are heavily indebted and have the potential to dive off the deep end. If you are making $100K+ then your current balance and remaining credit aren't such a burden for you.

georgefrick · 5 months

Have you checked all three credit bureau's or just one?
Others have asked where you got that score - where did you get it?

w4t · 5 months

Total accounts is another measure of your creditworthiness. Consumers with more credit accounts generally have better credit scores because it means more lenders are willing to grant credit. This metric represents the total number of accounts listed on your credit report. A breadth of different account types is indicative of good credit.

People with the highest scores generally have 21+ reported accounts

AHRoulette · 5 months

Was that your Fair Isaac or FICO score? Do some research if you don't know what I'm talking about. Therein you may find the answers you seek.

TrollSockpuppet · 5 months

Credit score is only one piece of the puzzle and a lot of times credit decisions are a real joke.

Know a woman who got 2 increases on her credit line within 4 months. The account was 4 months past due and the account holder was dead.

KeepingTrack · 5 months

It's probably the balance of 12k card and other debts combined (you said 6k card, etc). That said, perhaps debt to income ratio.

ass_munch_reborn · 5 months

First off, you have to tell us what type of score.

With what you say, you have a VantageScore most likely:

http://en.wikipedia.org/wiki/VantageScore

And that is not top tier. Assuming a straight ratio to a FICO score, that would about a 700, which isn't bad, but isn't that good.

GunnerMcGrath · 5 months

Just knowing how they come up with a credit score, anything in the 800's is extraordinarily hard to get and you would not qualify based on your "limited credit experience" so that must just be a mistake.

That said, check out myconsumers.org for good auto loan rates. They're a credit union so you may have a better shot with them and membership is open to anyone.

m0viestar · 5 months

I have a score of 800, have 4 accounts in good standing, never late, 2 credit card, 1 student loan, and a personal loan. credit card limit is $10,000 combined, personal loan is 5,000 and the student loan has 300 left on it (phew) I still got denied for an automatically approved car loan through Toyota financial (criteria was no accounts in bad standing, and at least 1 account in good standing). Doesn't make sense.

jldugger · 5 months

Your credit score is only one factor in loan underwriting, and different institutions have different needs and risk tolerances. So I wouldn't bank any lending transaction on any one particular lender. Plus credible options help you negotiate anyways.

Also, if you're aiming for the incentive loan, they have every incentive to bait you in with the loan and then claim you don't qualify, but there's this other loan with a longer term and higher rates they can put you in... So always go in with an alternative and be ready to walk when the deal changes.

minze · 5 months

I'm amazed at how many people posting in "/r/personalfinance" don't know what this means. they are telling you the reaosn right there.

"Too few accounts currently paid as agreed"

Translation: You pay your bills but you haven't been paying them long enough for us to really tell if you do it all the time or not. keep doing what you have been doing for a longer amount of time and we'll give you all the money you want.

ytruhg · 5 months

EDIT: Follow up to all the posts: In the rejection letter, the said my credit score. And it was higher then 833. They received the information from experience. I am 28 and I have never had a loan in my life.

I am requesting a copy of my credit report. And will update shortly.

EDIT2: Got my report: I have four accounts in good standing And Zero potentially negative items

I have two open credit cards (I forgot that I am a cardholder on a different account). One has a balance of $12k (but that is not due yet) the other has a balance of $0.

One had a high balance of 13K with a credit limit of 20k the other had I high balance of $6k with a credit limit of 17K.

All the accounts were never late.

THanks

Thanks

bobjohnsonmilw · 5 months

What a country. Not only did they get all this cash from us to keep afloat, but now even with a fucking 833 you can't even get a fucking loan.

No, no fundamentally unsolvable problems in this country. Nope, none.

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