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Loan denied ?

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Old 01-23-2005, 02:32 PM
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Default 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.
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Old 01-23-2005, 03:11 PM
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Default 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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Old 01-23-2005, 07:15 PM
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Default 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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Old 01-23-2005, 07:27 PM
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Default 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.
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Old 01-23-2005, 07:34 PM
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Default 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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Old 01-23-2005, 07:56 PM
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Default 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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Old 01-23-2005, 08:06 PM
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Default Re: Loan denied ?

Quote:
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
I agree with him.
 
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Old 01-23-2005, 09:14 PM
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Default 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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Old 01-23-2005, 09:18 PM
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Default Re: Loan denied ?

Quote:
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.
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 !!
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Old 01-23-2005, 09:23 PM
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Default Re: Loan denied ?

Quote:
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.
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
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