Why can't you get an auto loan if you have good credit?

Answer 1

There can be numerous factors as to why. If you are a new credit user, (you got your first credit account within the past 3-5 years), then you're considered to have an insufficient credit history. Even though you may have never been late and always paid on time and kept your debt low, you may not have a long enough history that goes far back enough. Lenders generally want to know how you've been on your bills for a pretty good length of time, usually the past 3-7 years. If you're only applying on the net for loans and keep getting rejected, then your credit score may be too low. Most online lenders go by your credit score only and usually have you have to have a score of at least 680 to qualify for any online lender. Remember, you have the right to obtain the reason why you were ejected for any loan from the bureaus your credit was looked up under via the fair credit reporting act. Remember, credit history means exactly that, a credit history. Just because you have one credit card and don't charge anything on it for a long time, or if you have sporadic charges, (you charge something in January, then June, then December, then April the following year, for example) wont give you a credit history either. Its as simple as charging $20 a month onto a card and paying the balance in full the following month. Lenders want to know and get a clear indication of how you handle your bills month-to-month over an extended period of time as noted above. If you have sporadic charges or never use a credit card at all even though you have one, lenders have nothing to go on because you haven't used any credit.