Does it make sense that my lack of credit affects a car loan?
Question by redsxgal32: Does it make sense that my lack of credit affects a car loan?
I am 23 years old and I applied for a loan yesterday to buy a new car. My credit score is 749 and I was refused the loan becuase of my “lack of credit.” Most items on my report are less than 3 years old, but I thought that was taken into account on your credit score. I was just wondering if this makes sense.
Best answer:
Answer by Bharris44
Unfortunately, credit agencies only like to loan money to people with long, clean credit histories. Join a credit union and get a car loan through them. They are the most friendly for loans. You won’t get a great rate because of your short history, but you will most-likely get the loan, and the rate will be better than other agencies.
Keep your credit spotless, and once you’ve paid on it for a year or so, ask to refinance at a lower rate.
The other option is to get a co-signer who is older and has a good credit rating, but it’s best to get credit in your name only so that you won’t have this problem in the future.
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Q&A: When you pay an over-due/write-off item, how long does that (lack of a better term) “bad credit” stay on file?
Question by Bronzed: When you pay an over-due/write-off item, how long does that (lack of a better term) “bad credit” stay on file?
When I was 18 I started getting credit cards and loans, and due to youth, ignorance and inexperience I missed several payments and I believe I even have a certain card “written-off” for the amount of $ 3. Now that I make good money, I’ve accessed my credit report to pay off all fees and late items. How long will those negative marks stay on my file? I’ve heard “7 years,” I’ve heard “a few months to one year.” Obviously I am now older and wiser and wish to have- and maintain- good credit. If bad marks are on my credit report for several years, is there any way to expedite the process of having them permanently removed? Thanks!
Best answer:
Answer by TRAC
Generally, 7 years. If you pay on an item, it (according to what I’ve been told) “restarts the clock”. If you can pay something off in one lump sum, that’s best. If it’s going to be on the credit anyway, it’s better to have it paid, albeit late, than not paid at all.
I’m in the process of repairing my credit. I’ve had some charge offs as well, those close to being removed I don’t worry with. However, if something has a ways to go, I’ll pay off one at a time until they are all paid. If nothing else, it shows some effort to repair and while some creditors don’t even care about that, others will.
Good luck.
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Categories: Credit Score Questions Tags: better, Credit, file, item, lack, long, overdue/writeoff, stay, term