Should I Be Denied For A Car Loan With My Credit Rating? | Credit

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You should be able to get a loan. However, keep in mind that a 724 can be deceiving too. As mentioned, if you’re credit history is not well established, you may have a good score, but still be looked at as a risk since you have limited history. This is always common with young buyers. But, our dealership has lenders that specialize in first time buyer programs for just this kind of situation. If either of these are a description of your situation, you may have some trouble getting the rate you’re looking for. The incentivized rate of some manufacturer’s is the elusive “holy grail” that only the highest credit levels can qualify for. I know Honda used to be very difficult in years past (My wife and I were in the same boat in 1996. Young, mid twenties, household income of $80,000, and credit scores over 700. Turned down by Honda on an Accord. No negatives on credit, just no real history besides a couple of small credit cards). However, different car makers are different about this though. Ford, for example, has been VERY flexible in qualifying customers for their special rates over the last 5 months (at least in our mid-south region). They tier out, or rate, customers from a tier 0 (the best), to a tier 5 (lowest). We’ve seen them buying the special rates even into the tier 3’s, occasional 4’s. Don’t get so consumed with the interest rate that you pass on getting the car you want. Trust me, the dealer is trying to get you the manufacturer’s rate. So if you’ve hit a dead end with that, and you’re certain that is the car you want, then ask your dealer about other lenders or approach your own credit union or bank. Sounds like you already know that you won’t touch 2.9% outside of having a CD to borrow against. I will say, if the “flat pay” on the company financing is not substantial for the dealership, an EVIL Finance Manager might be pushing you toward an outside lender so he or she can hold more financing money. If you suspect this, visit another dealer of the same make and model. They might even be able to get the actual car sitting on the other lot. Just don’t tell the lot you’re already dealing with that you’re going to another dealer, or they might not be willing to dealer trade that unit, suspecting it might be you on the other end of the deal.

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