I got denied lowest rate car loans (lease) because no history of previous loans – even w/730 FICO – makes sense

Monday, June 22nd, 2009 at 23:27

Rommil asked:

As you can see from above, I applied for a car loan. I was denied the most optimal rate, even though they only required a score of 710 because I have never bought another car or do not own a home. My FICO score is a 730. Is this dealer trying to make me pay the higher interest rate or is there some validity to this.

Reply:

Auto finance is what I do for a living and the problem is that while you have a great score your file is what is called thin.

This plus the fact that you have not purchased a vehicle or home before makes you a first time buyer and the guidelines for this are a lot different then for other loans.

There are a lot of people that think score is everything, your case is a prime example of why profile is actually more important then score.

What you will need in the future is 3 credit card accounts (revolving) with balances below 30% of your limit and 2 cars, boats, homes, furnitire or personal accounts (installment) all with good long payment buy prescription drugs without prescription history's.

With this type of credit profile, you will be able to get just about any loan you want in the future at the best rates.

Source(s):

Finance Manager for over 7-years.

Finance your car here onsite if you need help buying one of these beauties :)