Just went through a mess trying to finance a used car. I haven’t borrowed money since 2012, no debt, no credit cards, just living within my means. When I applied for a loan, I was told I was refused. Not because of bad credit, but because I hadn’t used credit recently enough.
The dealership advertises “no applications refused,” but apparently if you don’t have an active debt history, you’re too much of a mystery for the system.
Co-signer? Not allowed. Using my own bank account for payments? Denied. Their solution? Open a joint account with my dad just to satisfy a bank’s paperwork, pay hundreds in fees over 6 years just to make it work.
The credit system says you can’t borrow money unless you’ve already been borrowing money, like somehow living within your means disqualifies you. It’s not about good credit, it’s about loyalty to the debt game. Screw you for standing on your own feet, I guess.
Just needed to get that off my chest. Anyone else run into this nonsense?
It may vary state to state, but I bet you can secure your own financing. Go to your local bank and ask. The rate may be a bit higher than some random bank the dealership uses, but at least it’s something.
Also check credit unions.
This 100%. It behooves anyone that isn’t interested in the credit “rat race” to keep and use credit union accounts regularly, because credit unions can and do lend based solely on long-standing financial relationships, even if that means just having a 4-year old checking account that receives consistent direct deposits every other week. This sort of relationship-centric model is something the big-name banks have all but abdicated.
The best time to open a credit union account was years ago. The next best time is Right Now.