Okay so I've done all my research and thank you all for your help, now I'm ready to buy.

I've never got out a loan before so this will be my first time....I've been in college for 6 years and am now working full time and ready to purchase my MINI.

Wellsfargo said that everything looked good, my credit is clean so what's the problem, underwritting would not approve it because I don't have any auto financing experience?????? What is that? I've never heard of such thing...am I going to find this where ever I go?

Any suggestions as to where I might go to get an auto loan with a reasonable APR, that would not mind loaning to someone without dedt money?

Please help.

 

Try getting one of your parents to put their name on the loan also. You would be number 1, they would be number 2. That way its a win-win. You get the loan, and the bank knows if something happens, there is someone with established credit. (I'm 18 and thats how I got my loan)

 

This is not a car financing issue. This a credit issue. Its all about the money. If you've never had credit, well ... your going to have to establish yourself ... prove that your worth the risk.

The mere fact of not having any debt means nothing

I suggest you go to MSN, click on the money section and start reading about FICO scores and how to establish a good credit rating. How to do it goes way beyond what can be typed in a few sentences.

Best of Luck!

 

I had to do that back in my younger years when I bought a new car. After a year or so, once you get your credit established, you can then assume the loan from your parents and put it in your name only.

 

I have credit, I have credit cards, I have a cell phone.... and my credit is great (just not auto loan). I have better credit then my parents or I would have them co-sign.

My question is where would be a good place to get a loan. I've only checked one Wellsfargo. Any ideas?

 

My loan is through Chase Auto Finance, and I had never had a car loan previously before the MINI.

 

I can't imagine any bank loaning that kind of $$ to someone with no credit history. If loan institutions were to take on that kind of risk, the rest of us would be paying 20 percent interest to make up for their losses.

Yep, you're going to need a co-signer. We were all young once (Jeremy still is) and most of us had to go that route at least once in our young lives.

Once you establish that you're a good credit risk, the banks will treat you as such.

 

We went through our credit union, which was on the "work with" list at our dealership. Have you talked to your MA about financing through Wells Fargo? Sometimes they can help pave the way.

 

Okay... did they tell you what your credit "score" is ? If it's over 650, you might find someone that will give you an auto loan in just your name.

 

I got the loan for my MINI without ever having an auto loan before. My credit history consisted of a few credit cards that were always paid in full and on time every month. Probably at the most about 8 years worth of credit card history on my credit report. I had absolutely no problem getting my loan from a credit union that I had opened a savings account with only about a month prior. They also gave me an excellent rate, and this seems to be a fairly good bet about most credit unions. I would suggest looking into local credit unions that allow any local residents to join, or find one that serves your employer. Most of them let you open a savings account with a very small amount of money (mine only required an initial deposit of $5!). The person I dealt with at my credit union was very friendly and provided great customer service. They also allowed up to a 2 month delay on the first payment.

My father had once suggested that I take out a general loan for a small yet significant amount of money and pay it back basically right away to establish a good borrowing history. This might be something you might want to try if you still run into problems. Although I never did this, I had no trouble getting approved for my loan.

 

try CharterOne. they usually have good APR than your local bank.

 

Thanks for your help and I will keep you posted on how everything turns out.
Doodle you've been really helpful I'm going to take your advise and see what happens.

Luv the Baygl

 

They may be denying you the loan because of your previous volume of credit. If you've only had credit cards you most likely don't have a lot of credit money-wise. I'd try shopping around at other banks and showing them proof of good income, assuming you have that. Doesn't MINI do financing?

 

bayglface: you're welcome! One thing to mention is that, yes, MINI does do financing. But even if you have excellent credit, they will not be able to necessarily get you the best rate (however, if they're the only ones who will approve you, that's another story). You can try MINI and see how things go with them, at least you will have something to benchmark from if they approve you and quote you a rate. I had already gotten my rate from the credit union, and when I told the MINI finance manager what the rate and terms were she said they couldn't come close. Just FYI. Good luck!

 

Credit's a funny animal. if you pay off a credit card, and close the account it adversely affects your credit score.

The idea is to have credit, pay it down, but not close the account. Your score is based on how much available credit you have.

 

Just got my MINI this weekend. I financed through BMW financial with the dealership. It was a quick process and they gave a very favorable rate. I would definitely recommend them. You can also get a credit card with them and have your car's picture on the card. Pretty cool.

 

Good note Gromit801 I'm glad to know that...I've been doing something right.

Good news I called my employer and found a credit union they do business with and they ran my application over the phone and will hear the status at the end of the day....wish me luck guys.

Anxiously awaiting,
Bayglface

 

Dkslvrmini that is pretty cool that's definately my next bet. Thanks

 

well, i you have ever worked with a pos creditcard company (bank) like
Bank of America who will say that you participated in a transaction
just because the merchant had your 3 digit security code even after
you reported stolen, you will want to close all your accounts with them
and work with a better bank. i personally hate B of A and will NEVER
use them again.

well, they did apologize for their mistake afterwards (after i yelled at
them a few times as they kept coming back it was my fault) but still,
how rediculous can it get? :impatient i have 3-4
other creditcards and rather high credit limit. i don't need their "help."

 

MINI Financial actually beat my credit union's deal back in April when I took delivery and it was an easy process. My wife to be co signed on the car with me and we had elite status so I would see what your finance dept at your MINI dealer can do for you as well. Good luck!

 

I found the best rates are with eloan.com. I beleive they are a little more forgiving when it comes to credit ratings. Worst case is it will bump the rate up a half point or so.

 

Yeah.. definitely have MINI Finacial have a look at it. I financed my first car a little while ago (MINI) and they were great about it. I even qualified for elite status and got a decent rate. When I bought my new one (had it for a week today!) they gave me an even better rate because this time I actually had some auto loan type credit built up.

 

Good advice thanks guys.

 

good luck.

 

Just an FYI regarding Wells Fargo...

First, a little background: I do all my personal banking at Wells, as well as my family's banking (mainly because they bought a bank that bought a bank that I used to have a checking account at...). In any case, with four kids' accounts, multiple checking accounts, and a couple of mortgages, I guess I earned their "top" customer status (PMA they call it). Not bragging, just setting the stage...

To make a long story short, a few months back I talked to a banker there about an auto loan for my son for a used car. I have a good relationship with this banker, and she candidly told me that the auto loan market is not "where Well's plays." They are _very_ conservative in that market. In my case, that simply meant that they could not be competitive on rates for anyone not having top credit scores (my son who just turned 18 for example). Again, being candid, she suggested I work with the dealer.

Maybe there are Wells bankers lurking here that can say otherwise, but bottom line is that I wouldn't let a Wells rejection on a car loan bring you down. There are other banks that do "play" in that space much more aggressively (Chase is one that does, and I saw someone reference them above.)

I've bought a bunch of new cars over the past 25 years. It used to be that shopping around for a loan always paid off. But in the last 10 years or so, I've never been able to beat the deal that a dealer has found for me. Note that this doesn't necessarily mean manufacturer financing; sometimes it was just a bank that the dealer dealt with. I think good dealers (their finance folks) realize that they really want to make a new car purchase as painless as possible in order to minimize the chance of losing a deal...

In any case, I suggest talking to your dealer and have them get you a couple of options. They may suggest you get a co-signer in order to get good rates, but that should be your decision.

Just my $.02...

Good luck