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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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

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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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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I agree with him.

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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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I hate to say it but ..If your looking at borrowing 25K for a boat and you dont own a home ..Your priorities need reorganizing ..Straighten out your credit ..Buy a house and dont ever miss payments ..I dont care if you charge a payment !! :drink:

Re: Loan denied ?
 

Yup have to agree ..Im in the high 700's last time I looked and I get unsolicited loan offers for alot more than 25K all the time .. Just got one for 40K at 5.75 for 48 months ..Just sign here ..GOD BLESS AMERICA
Oh and once you get these in the mail ..dont sign there :D

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I dont need to buy a home. I live in my fathers building. Its been paid for for 30 years. I dont own the building so I cannot borrow against it. I was asking for loan advice, not advice on how I should spend my money or live my life. By the way, since when was any boat a priority? Arent we all in this for fun? Its not a matter of that I should pay off my bills now, its the past that is screwing me up. Its whats on my credit from the past. Did I make the mistakes? Yes. I just want to know if there is hope for me or am I wasting my time? I know too many inquiries hurt the score, so I dont want to start filling out credit apps if all they are going to to is look at the score and say"no".

Re: Loan denied ?
 

i think i am at 851..... :rolleyes: :cool: :D

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The banks look at home ownership as ..someone who can pay there bills ! And an asset they can attach .. When you write " I live at home with my dad" that counts as a 0..
You got some good advice here Take it or leave it .. :drink:

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Aint it a good feeling when people want to give you money :drink:

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Just some more advice. I went through a divorce and at that time my priorities were paying the IRS on time and the items the court directed me to pay on the Bi*chs behalf. So I had to deal with some credit issues later. The best advice I can give you is to contact the creditors you owe and at least make a settlement with them. For the amount you will spend, it will within several months cause you to pay less down, but have lower payments. Also you will have improved your credit standing in a shorter period of time.

E.S.

Re: Loan denied ?
 

be nicer if they didn't want it back..... :D

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Someone will finance you with that score but it will be a 2nd rate finance company and your rate will be over 10%. But.. they will finance you.

Roby

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Hey I saw your money ..It said it didnt feel needed and was heading south :drink:

Re: Loan denied ?
 

I think that you got a lot of good advice but you have to piece it together. First off with a score as low as you have you will be lucky to get a secured card. A loan there is NO WAY. So now you have to look at how to fix your credit the best you can and get it back to good standing. I had real bad credit also when I started up my business. One month I would be swimming in money the next I would be broke. I still have a hard time smoothing out the highs and lows but make sure my bills get paid before I go out for a night on the town, buy toys, or anything like that. If you have ANY debt at this time of your life if you want to get your credit back up you have to get all but one of your cards paid off. Then you have to pay that down and NEVER miss a payment. You score will go up quickly at first. I purchased my truck and had to pay 13% on the loan. I made sure I paid it off in two years to keep the interest down and my credit went up BIG TIME. I am not over 700 and hope to take out a large loan to build a vacation home. I also got a lot of help from my wife.

Jon

Re: Loan denied ?
 

save money now and pay cash for your toys... or finance a boat and charge all gas and beer and hookers on credit cards for as long as you can. live for today!!! just don't piss daddy off or you'll be sol and homeless

Re: Loan denied ?
 

This may not be popular advise but, use the credit you have, to increase your score.

If you have a Visa/MC etc. take a cash advance, hold the cash and pay it off by the cycle date. DO NOT spend the cash. Stagnant credit hurts you just like active bad credit. Make the credit you have active, but don't carry balances, pay it off in full by the next due date. If you have family that wants to go shopping at Macy's, take the shopping and pay for it on your active Macy's card. Have them pay you for the items them pay off the balance next month.

It's one way of getting your score up. Just don't be tempted to carry a balance, pay it off.

Re: Loan denied ?
 

MILD THUNDER, there is alot of good advice on this thread. I've been in auto/marine finance for 13 years. Like audiofn said, if you really want a boat; then, pay the rate for now (as long as you are comfortable with the other terms). In two years or so, look at refinancing it. All the while, taking into account the other advice these folks are giving you.

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Oh yeah, one of the easiest ways to raise your score, is ask your credit card companys to raise your limit (as long as you don't use it!). Always try to keep your revolving debt less than 50% balance to limit.

Re: Loan denied ?
 

Ok. For starters, I dont live at home with my dad. I live in his apartment building. I agree the bank looks at someone who owns a home less of a risk.

Here's a scenario. You have a guy that takes home 5000 dollars a month. No mortgage, no child support, no kids. Just a car payment and about 2000 dollars in credit cards. Credit score is 575. Looking to borrow 25k on a 40k boat.

Another guy, takes home 4000 dollars a month, three kids, 1500 dollar mortgage, 600 dollar car payment, and a credit list 10 pages long. He has made his payments. His score is 750. Looking to borrow 40k on a 40k boat.

The guy with 3 kids, a mortgage, and a boat load of bills, will get approved. Why,because he pays his walmart bill on time.

Dont lenders look at what a person's income is? Or what he owes? Its like all they care about is the score. You can make 10 bucks an hour at walmart, but as long as you pay your sears card on time you can sign on the dotted line for 100k boat. No questions asked. I knew a guy that had excellent credit. He had a business. He racked up about 3 million in credit in two years span, he bought a big home in florida, a 50ft sea ray, some fancy cars, and guess what, he filed bankruptcy.


I appreciate the advice, I really do. I am working on getting these credit problems of mine fixed. But as we know, it takes time. I found a good deal and would like to jump on it. And to dish out 25g cash right now isnt practical for me. I just want to know if there are any lenders on the board who can give me a idea of what they can do, Or if anone with a score like mine that was approved, by whom, so on and so forth.

I get p'd off when people try to make you feel like your stupid, or a deadbeat because your credit is bad. I remember when I bought a 2001 Pontiac Ram Air T/A in 2001. I wanted the car. It was about 32k. I figured I would throw a few grand down and finance the rest. The salemen was an older guy, he ran my credit, came back with a snicker, and said, Joe, I dont think we can get you in this car, your credit is too bad. He started giving me a lecture on paying bills, and he was being a smart a$$ while doing it. He was puttin me down indirectly. So I told him, ok forget it. I came back the next day with a check for 29k and dealt with another salesman. The same guy who was lecturing me about paying bills, and making fun, was sittin in the dealers coffee room with his bagged ham sandwich lunch and driving his 10 year old ford taurus. He must have felt like a jerk when a 21 year old kid buys a 30k dollar car cash.

Re: Loan denied ?
 

Pay cash for toys.
always pay full amount on credit cards.

Re: Loan denied ?
 

take home 5k a month and no bills....... pay for the boat in cash?

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Atts what im sayin ..story doesnt hold up .. Lilduece ??

Re: Loan denied ?
 

Yes the guy with all the debt, kids and everything else DOES get the loan. Why? Because he has proven historically that he is responsible and does not take debt that he can not pay off. Your bad score speeks volumes about your credit risk. Yes they do look at how much you make along with a lot of other things. But you have a HORRIBLE score so you will not get a loan unless you are willing to pay STUPID rates. These bad rates are likely to get you in worse trouble. Take your 5K a month and pay all your debt down then save your money and buy a boat cash if you ask me.

Jon

Re: Loan denied ?
 

I dont have a shi++y attitude at all. I asked a question about whether I would be able to qualify for a loan for what im looking for. Right away you jump in and start telling me pay my bills, and critcizing me saying I live at home with dad. Bills have been paid. The only debt I have now is my truck payment. Get off the soap box. Unless you have some info that will help me, like the others saying "pay the higher rate, then refinance in a year", than don't be so quick to "teach me about life". I'm 24 years old, worked since I was 13, put in 12 hour days "MY" business, got a boat and a King ranch diesel superduty and a nice retirement fund going for me. If mom and dad were so wealthy, I wouldnt have had to have a job since I was 13 years old, working 5 days a week after school and weekends. I know what hard works all about, so if I dont take your critical comments well, then I dont know what to tell you. I can only dream of being as successful and knowledgeable as you some day.

As for everyone else, thank you. I appreciate the insight you have. I try to help people out when they need it, not knock them and have the "I told you so attitude" :drink:

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I'm 24 years old, worked since I was 13, put in 12 hour days "MY" business, got a boat and a King ranch diesel superduty and a nice retirement fund going for me.
dont forget the 5K a week ..
And you cant swing a 25K boat
Im callin out the hooey wagon dude !! Let me go get my boots :p

Re: Loan denied ?
 

I thought 850 was the max :D

Re: Loan denied ?
 

when i was 23 i financed 29k for a 40k boat. I put down 11k ( trade and cash ). Since i didn't have any credit, no home and didn't make much money then, the dealer had a hard time finding a finance co. to approve me. finally found one at 11.99%. I took it. then re-fi'ed in 2 years at 7% after i established myself.

Re: Loan denied ?
 

Thanks Hi perf. Thats what Im looking for.

Your right Pantera, Im full of it. I have to try and impress people I dont know, and will most likely never meet. If I had something to lie about, do you think I would mention my fico score? I worked the last 6 years as a union cement worker for the City of Chicago. 30 bucks an hour, 40 hours a week=1200 a week. Times 4=4800 a month with no overtime. Now I have recently went partners with a friend doing rough framing estimates for some of the big lumber companies. Am I proud of what Ive accomplished? Yes. Can I afford a 40k boat? Yes. The problem is, I would prefer to keep the 25k in the bank for now, being that I am getting this business going. If it makes you feel better about yourself, than yes, Im full of it.

Re: Loan denied ?
 

I'm with the rest of these guys. Always, always pay cash for toys! If you don't have the discretionary money to buy something you just can't do it. Going in the hole for a toy is what keeps most working stiffs working. I'm sure this isn't what you want to hear but it's all sound advice. Some of these guys may be taking jabs but they're really on your side. Go buy a house/condo whatever with that cash. You've got enough income to carry a loan. Come back next year and buy a boat. I'm sure I could borrow enough go buy a nice used Skater but I'd rather retire some day.

Re: Loan denied ?
 

My fiance owns a apartment building. It was left to her when her father passed. Its on the market now, as soon as its sold, that money is going to buy our house. It should be nice, we both make decent money, we'll have a house paid for, now I just need to get my credit score up and it will work out. I suppose I could hold on to my Liberator for a year or so until we get settled. And again, the bills are paid off. My truck is the only payment I have, and its a write off for me. Thanks, guys, after all this talk, I might put some bolsters in the Liberator, and keep it for another year. Who knows, maybe someday, I could afford a Pantera :rolleyes:

Re: Loan denied ?
 

www.lexingtonlaw.com

I remember seeing this url on the board in the past and the people that used them were pleased with the results.

Re: Loan denied ?
 

Having a house that is paid for is about the worst use of the best tax break you could have. Pay off all the other stuff and mortgage the house at 80% of value.

As for all the other advice, its mostly correct. If you don't know want to hear the answers, then don't ask the questions.
If you make that much $$$ and you have that much credit card debt, it shows the bank exactly how you manage and spend money. Either that or you haven't been making that much for long enough to pay off old debts. Neither one shows you to be a good long term risk.

Re: Loan denied ?
 

Mild Thunder,

I understand your frustration. I am a 43 year old physician with a very comfortable income for the last 14 years. I own a home, a rental property, three corvettes, and have spotless credit history. I do not even know my credit score. I have been with private banking since I finished residency. All of my credit cards have been paid off each month. All of my home loan/rental property payments have been on time and most paid one month ahead of time. When I bought my first Formula, my private banker asked only one question ... "how much do you need?"

In the last couple years, I have lost a good friend tragically. My mom was diagnosed with cancer and suffered a terrible death. I decided to go part-time to be with her and enjoy life more. When I went to my private banker to refinance my home and rental property to get a lower rate, they asked me to get a note from my two part-time employeers guaranteeing my steady hours. I pointed out to them that I was still a professional, still had an active medical license, I had been their client for 12 years without a single missed or late payment. I also pointed out that I was now part time by my own choosing (I was not fired or laid off), and could work as many or as few hours as I wanted to. Didn't matter ... they still wanted notes from my employers. I told them to suck eggs and refinanced both at lower rates with someone else.

When I decidied to purchase a newer, bigger Formula, I needed a pre-approval to hold the boat until I could get to California to see it. My "private banker" told me to go to the local branch and fill out an application. I couldn't go that day because I was working 12 hours. I was told it would take another 24 hours after I filled out an application. I need this pre-approval now, not in 48 hours. I told them to stick it and called my credit union. I had a faxed approval 1 hour later.

Admittedly, a few here jumped on you without knownig all the facts, but I hope you take the comments from others constructively and not personally. There is a lot of experience among the people here on the board and therefore a lot of good advice to consider. It sounds like you are a hard worker but a little less experienced with financial matters. Unfortunately, many young people don't understand how important it is to pay the bills ON TIME. It is about all that matters. Not income or income/debt ratio alone.

I hope you find a solution to getting the boat. If you can't, it was probably not meant to be. Even though you and your fiance may be able to buy a house soon, consider investing the cash in a secured annuity, take a loan on the house to boost your credit rating, and take advantage of the financial/tax benefits that come with owning property. The interest from an annutiy is tax deferred, and the interest you pay on the house is a tax deduction. Use it to your advantage!

Re: Loan denied ?
 

Re: Loan denied ?
 

If you were to order a Pantera today, it might be done by the time you get that score up. :D