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Loan denied ?
Has anyone ever been declined on a loan for a boat because of their credit score? I am looking to borrow 25k on a boat and trailer that books average retail around 40k. My credit score is not up to par. I have a fico score of about 575 from some credit problems due to revolving accounts. I have never filed bankruptcy or had any repo's. Just some stupid credit cards and a doctor bill that went in collection. Is there hope for me? I dont want to pay 12% on a loan, nor do I want to have to finance a boat for 3 years like I hear some banks require if credit is poor. The boat is a 1996. I would like 8-10 years at a decent rate I am aware I may not qualify for 5.25%, but I dont wanna pay ridiculous amounts either.
I dont see much of a problem as long as the boat is insured, and I want to borrow about 60% of the boats value, so its like a 40% down payment. Any info would be great, because I would like to get this boat Im looking at. |
Re: Loan denied ?
I can put it best like this...When you fill out a loan form, what they are looking at is your ability to pay it back. Even though you only had a "couple" cards and meds go collection, usually it doesnt go to collection unless the account goes 120 days past with no attempt of a payment. There may be other reasons for a low beacon, such as debt to income. You make a certain amount per year, your debts are another amount. if it over a certain percentage, you may be denied. One of the ways to get around it is use of a home equity line of credit, that way both amounts are insured should you default. Secondly, you have to rebuild your credit, and you may have to bite down on a higher rate for a year or so to restablish yourself then refinance it again once you have proved your self a responsible bill payer. See if they can do that with a negotable loan in 12-24 months. Many companies are making credit harder to get with lower rates, its the only way that they can insure themselves...good luck, Rob
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Re: Loan denied ?
most banks i've come across wont lend $$ with a score under 620. most will go bank 10 years with some exceptions...boat loans are very difficult...contact Dave P here on the board i've seen him do somethings that werent expected. he's with essex credit
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Re: Loan denied ?
Close out all open cards that you can. A lot of them if you have always paid on time and more than the min. will lower your rate with just a phone call. See what one's have the best rate for a transfer so you can close more cards. If the med. bill is now paid write a letter to them and ask them to remove it, and any other ones that show up on your credit. But your still 30-60 days out before it would show up on your credit score.
Wnen I was 25 my credit score was about 300 with a repo, and a bunch of med. bills. Now at 34 my score is 785, I was it the high 600's low 700's by 28. I owe it all to my wife doing what I just told you to do. It was a lot of work but it has been more than woth it. |
Re: Loan denied ?
do you own or buying a home ? you could try a home equity line of credit. that's a low # on a beacon. good luck.
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Re: Loan denied ?
don't take this the wrong way, but that 40% you were putting down on the boat might be better spent on paying your bills!!!!! then your score will go up
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Re: Loan denied ?
Originally Posted by hugetime1
don't take this the wrong way, but that 40% you were putting down on the boat might be better spent on paying your bills!!!!! then your score will go up
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Re: Loan denied ?
The thing is, Im not putting down 40% out of my pocket. Im just going to buy the boat cheap. I dont own a home, so a home equity is out of the question. I can understand being declined if had past repo's, or bankruptcy, or if I was going to ask for 100% loan to value, but c'mon. I guess there are too many boat buyers with excellent credit buying boats these days, the banks dont need to take extra risks.
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Re: Loan denied ?
Originally Posted by MILD THUNDER
The thing is, Im not putting down 40% out of my pocket. Im just going to buy the boat cheap. I dont own a home, so a home equity is out of the question. I can understand being declined if had past repo's, or bankruptcy, or if I was going to ask for 100% loan to value, but c'mon. I guess there are too many boat buyers with excellent credit buying boats these days, the banks dont need to take extra risks.
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Re: Loan denied ?
Originally Posted by LapseofReason
Close out all open cards that you can. A lot of them if you have always paid on time and more than the min. will lower your rate with just a phone call. See what one's have the best rate for a transfer so you can close more cards. If the med. bill is now paid write a letter to them and ask them to remove it, and any other ones that show up on your credit. But your still 30-60 days out before it would show up on your credit score.
Wnen I was 25 my credit score was about 300 with a repo, and a bunch of med. bills. Now at 34 my score is 785, I was it the high 600's low 700's by 28. I owe it all to my wife doing what I just told you to do. It was a lot of work but it has been more than woth it. Oh and once you get these in the mail ..dont sign there :D |
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