I need some suggestions. I am trying to help my brother in law get a car loan. He is 19, a college student, and has absolutely no credit history. He does have a Wells Fargo VISA that hegot 2 months ago so I don't know if it is report ing yet. I didn't want him to waste any inquiries so I told him to go to his bank (Wells Fargo) and talk to the loan officer...tell them his situation and that he has NO credit and ask what his chances are of getting a loan before they ran his credit and put an inquiry on. He did this and they said it would be no problem and quoted him 11-13%...which I thought sounded kinda high but have not been able to find anything better. So he filled out the application and they came back saying he had to have a cosigner and it would be 18%!! I told him to try eloan....they denied him altogether...he hasn't got the letter yet that tells why but it has to be no credit. Does anyone have any other suggestions? Another weird thing is that we have tried to get a copy of his credit report online just to see what it shows but we have been unable to. After eloan denied him we tried to get it free from experian and they said it could not be done online because the questions they ask you about your residence and particular accounts on your credit to verify it is really you didn't match so it could only be delivered by mail.....we tried worthknowing and hadthe same problem..authentication information didn't match. This seems strange because I get my report online all the time from different sources and never had a problem. I am beginning to wonder if there is something inaccurate on it that is a negative. Is it really this hard for a first time buyer to get loan??? He does work full time and has a good income.
I suggest your brother go to a dealer, pick the car he wants and let them find a a suitable lender for him. You wasted 2 inquiries already. Eloan is not a good source for anyone with bad or no credit. I think banks are very difficult to get car loans from period. The car dealer runs specials all the time for first time buyers. Just let them know that you dont want a lot of inquiries on your brothers report also. You should know by now that EVERYONE needs a original copy of their credit reports from the credit bureaus. So why even try the online access. That will help you tremendously in the future if there are any errors on your report (before and after effect). Good LUck to your bro.
yah depending on the model you should get no more than 11% interest. Vw of America Credit is 11% for first timer. They require about 10% of financed total down, and they verify everything (1+ year living at residence, 1+ year at job, and % of income to loan amount). Prepare by having proof of residence (lease), Utility bill, Pay stubs or W2, with you, and a contact person, they will call and ask HR about salary and length of job. Was pretty straight forward. Any derogs, disqualifies you immediately for first time buyers. If you have 24+ months of credit or a previous car loan, you aren't a first time buyer. We got a $30000 car loan with $3500 cash down no problems.
Get his credit reports first!! NO, for a 19 yr old to get a car loan is not that difficult, but he would have to show enough income to make the payments. A credit union would be best. But I would check his reports to see if there is something screwy on there first.
Shelby, My hubby and I have been here and done that. We were also, nineteen at the time and the dealerships and banks continually denied us. We needed a co-signor, blah, blah, blah. We had two credit cards between us (both in perfect standing). My husband's insurance was through State Farm and that is how we got the loan. His insurance agent got him an 8% rate with Jefferson National Bank (later bought out by Wachovia). We continually made payments on it and was never late. We have since paid the car in full. I would get your brother to contact his local insurance agent and see if there is anything they could do. It opened many doors for us when no one else would finance a couple of nineteen year old kids. Dani
