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As a college student (with a stable income), I have zero credit history. I have nothing bad, just a lack of history. To this point in my life, I have paid cash for everything and never had a credit card.

The question is:

I have no cosigner, I have no history, and I've been denied all my attempts at loans/credit cards. Despite my decent income and the fact that I can put a down payment for at least a third of the car I want, noone will take a chance on me for a decent loan.

By decent I mean, I've been offered a loan at 22%, preferably something less than that.

Is there an option for someone like me?

P.S. It doesn't help that my dream Cobalt SS is currently for sale.

P.S.S. If anyone is willing to loan an honest, hardworking man $10k, I will do whatever I can to make it legal. (loan agreements, legally binding, with interest, as a lien, collateral, etc.)

Does anyone know how to help/have any ideas?

 

are you getting a GM? they usually offer %0

I got my car with $7,000 down, and my credit rating is the worst you can have in Canada. Its worse than someone who applied for bankruptcy.


In a sense with inflation, my car loan gets cheaper to pay off every year being %0. If I was you I would hold out, or get a cheaper used car or something. %22 is throwing money out the window - I would never ever go for that. I was prepared to walk when they offered me %5.9... then did walk. They called me the next day and said they would do %0

 

^ they never go 0% on used cars.

unfortunately, shaky history is better than none, and with the economy the way it is, they don't hand out loans like they used to. 5 years ago you could've gotten that loan for around 12%

sorry man, i just dont know if it'll happen

 

Without a co-singer you're pretty much sol. I didn't have any credit whatsoever when I got my first loan and got my gram to co-sign and managed a 3.7 interest rate on my g6 and when I got my Balt I didn't need a co-signer and got the Balt all by myself with a 1.9 in may.

 

You might try going to your bank and explaining your situation. Then see if you could get get a signature loan for say 2000, and offer to secure it with cash in an account. Then when you pay them back they can release the account back to you. I would try set a six or twelve month payback and you can probably get a decent interest rate. Just a suggestion, and I think it would be hard for them to turn you down. They have zero risk if you secure it with cash and if you are already a customer I think they'll help you out.
I know this won't be enough to get a car but you establish credit so you can get a car loan.

 

It seems weird that you couldn't get a credit card. When I turned 20 and was only working part time (summers and winter break) and I had 0 credit history I applied for a Discover card and I got it. It's been about 1.5 years since then and i have good credit now. Just a heads up, its not good to apply for a bunch of credit cards in a short period of time because every time you get declined for a card and apply for a different one that credit card company can see all the times u have been declined.

 

They'll probably ask for a pretty sizable down payment. Probably enough so that if you were to default, they could sell the vehicle and still make a little bit (a down payment large enough to avoid negative equity situation)

Or they just wont approve it. Best bet is to get a VISA and start using it (and paying it off in FULL every month) to build your credit history. Or find a cosignor.

 

i got a GM visa when i was 18. i worked at a gm dealership at the time so maybe that's why.. i was always turned down before as well.

go to the bank and talk to a loan officer... maybe they can help break you into some kind of credit history?

 

Tried a credit union yet?

 

If anything, IMO, they are more strict on people with no credit history than a conventional bank. I hate to say it, OP, but unless you can find a co signer or have some sort of collateral of equal value to the car, you are screwed. Another big factor in a loan is proof of income these days. Banks have started to become big on that.

 

this is coming from someone who likes to pay in cash as well. my dad co-signed when i bought my car at 18 (I paid it off over a year ago, title in my name), i have school loans i'm slowly paying off, i pay all my bills on time (whether cash or not), i have a credit card that i only use when i absolutely need to (and have the money in hand to pay it off when the bill comes). even though i have school loans my credit is pretty good


honestly to start to build credit i would say try to get a credit card and have like a $500 limit (what mine was before i raised it) and use that often and pay off the bill in full when it comes due, but even this will take time.

 

my girlfriend (19) was approved for a loan for a 2012 dodge ram sport, after trade in she financed $31000, anything is possible.

 

I have no credit history and I got approve for a 2007 cobalt ss but my girlfriend cosign but she does not have no credit either but my interest rate is 24% I have to start somewhere so in 6 month of good payment I could re finance so ye anything is possible and before that I got approve 5000 in a credit union wit zero credit history