Originally Posted by Pharmacist (Post 99825)

Why are they "joke" of credit?

Also, I already mentioned that I paid off more than half of it (24k out of 45k) in just 5 months since I started working in January.

Originally Posted by kannibul (Post 99902)

Because unlike a lot of revolving credit, people aren't overly obligated to pay it back (without the same level of repercussions)

Originally Posted by Pharmacist (Post 99490)

Right now, words cant describe how goddamn pissed I am!!!!!!!!!!!!!!
Ok, here's the story.

I was able to locate a yellow 370 with sport package, no navigation, brand new, literally my ideal combination! Test drove it on Tuesday. Went back to dealership, and made an offer for 1000 bucks below sticker (i.e. CAD 44500) and dealer accepted, no questions or hassle. So I filled the credit application for the financing with 8000 downpayment and the rest to be financed over 2 yrs at 5.9%.

So today I call the salesman to inquire about the status of my loan and he got the F&I woman to call me later today. She told me that my credit application was rejected cuz I don't have a history of credit and I can either get my parents to co-sign my loan application or she can try to put the application through a bank, but at a possibly higher rate!

I was pissed, but thought perhaps my credit score was low (I never checked it before). So I went and checked it online via TransUnion Canada and found my FICO score was 760! It was rated as "good" (which is just one step less than excellent, the max. rating they have) , and higher than that of 58% of Canadians!

So I called the woman again asking wtf is up! She said Nissan rejected it despite my high score cuz I have no history of borrowing large sums of money and that I have a few credit cards with small credit that I do not use (which is partially true, I rarely use credit cards, and the ones I have are low credit limit, like 5000 CAD or so, from my days as a student). What I unfortunately forgot to tell her, but is already stated explicitly on my credit history that I'm sure they read, is that I DID borrow a large sum of money. That was around 45 grand from the government for my student loan in university, and that I already paid off more than half of it (around 24 grand) since I started working as a pharmacist last January. Thus, she said, Nissan thinks I'm a high risk applicant and will need my parents to cosign. She later said she'll try and put it through the banks and will call me later to update me.

That's the story in a nutshell. I woke up today ecstatic that I'm gonna be driving my own 370 by the weekend, but now I'm just angry, upset, and depressed cuz of the BS treatment I received. I'm no teenage high school kid. I'm a 25 yr old pharmacist. No way in hell I'm gonna walk into a dealership dragging mommy and daddy behind me to cosign for me. And my good FICO score should be enough for them. I'm buying a Nissan, not a Ferrari or Lamborghini.

At this point, I'm thinking f##k Nissan and their cars. If that's how they do business, I will take my business to another company. If they don't give me financing at 5.9%, then congrats to them. I won't ever pay a single penny to Nissan for the rest of my life.

Originally Posted by davidyan (Post 100045)

Thats strange that the bank wouldn't accept due to your lack of credit history alone given you have a good job and down payment. When I was 23 (I'm 26 now) I bought a house with barely any history at all and got a good rate. All they required me to do was to put more than 20% down for the house. A car should be even easier.

Originally Posted by matt2112 (Post 100058)

the only credit history i have is from credit cards, which i've always paid on time. i was approved right away by nissan financing, which was a shocker to me considering my limited history.if, however, i had been denied, i would not have been raging mad at nissan.

their decision to deny you makes COMPLETE sense. would you loan someone with no history of paying back large sums of money (student loans DON'T count in terms of credit history) tens of thousands of dollars? i certainly wouldn't.

having said that, don't give up on a great car like the Z just b/c you're pissed that your app was rejected. look for alternate financing and pick up the Z!! :tup:

Originally Posted by Sibze (Post 100059)

That’s wrong. A House (Mortgage) is probably the EASIEST form of credit to get especially in Canada and even more before the credit "crunch"

Reason = Mortgage is fully secured to an assets that will not depreciate but will increase in value. A bank is more guaranteed because the home value will not decrease 25% the first time its "driven"

Originally Posted by kannibul (Post 100106)

There are two types of debt they (issuing banks) look at:

Revolving credit (credit cards)
Non-revolving credit (bank loans, payment history w/ bills)


With credit cards, they look for revolving credit history first, then non-revolving, then compare that with debt-income ratio, how much available/approved debt percentage you're using, and current assets you have in the bank. Then they determine how much they'll approve you for, and the APR.

With a car, primarily they look at non-revolving credit history, if that's favorable they look at your debt to income ratio - combined they come up with an APR to insure they get their money's worth for loaning you the money to get the car, JUST IN CASE you default - so they can cover the expenses of collecting the car. The higher the APR, the more likely/earlier they think you'll default. In addition to those checks, they also do the ones mentioned with credit cards, however, since cars are a titled asset, and the title itself is securing the loan, tyically it's easier to get approved, and will typically have a lower rate than a credit card.

Originally Posted by matt2112 (Post 100129)

i have absolutely ZERO non-revolving credit history, which, according to your explanation, makes my approval even more strange.

Originally Posted by SoCal 370Z (Post 100131)

Yes, but what was your debt service at the time of your loan approval?

Originally Posted by mrarroyo (Post 100174)

I bought my car on my credit card! You should have seen their eyebrows and eyes rolling. Quite funny if you ask me.

Now I have an additional 31,000 points with AX for more toys. ;)

Originally Posted by matt2112 (Post 100186)

excuse my ignorance, but what is "debt service?"

Originally Posted by nogoodname007 (Post 100205)

:bowrofl: :bowrofl: i hope you can pay it all off on the 1st invoice received...lol

19% or whatever gangster rate they charge will rape...:stirthepot:

Originally Posted by Pharmacist (Post 99510)

Ok, regarding the no credit history thing, I DO have a credit history. It's my student loan. It was 45k, i.e. more than the Z is worth, and paid more than half of it (24k) in a period of only 5 months. Doesn't that count for something?

Also, funny thing is that my own bank already had me preapproved for 18 000 no questions asked, without me even applying for more. The financial advisor in the bank said if I give him proof of income (i.e. paycheck stubs) he can get me even more, but he won't be able to match APR rates of car companies, so I didn't apply.

Besides, where is the risk for Nissan? With 8000 downpayment, and financing over only 2 yrs, at no point in time will I ever be upside down on the loan. Even if I default, they can repossess the car and sell it again, and still make a decent profit.

Originally Posted by Tius (Post 100936)

Don't feel so bad. That's just the way the economy is these days. Congrats on being a pharmacist though. Maybe if you offer to down a significant portion that would help you out. I was in the same situation you are at now a couple months back. I'm a new physician, with 200k worth of student loans. Checked credit score on all 3 branches and the lowest was 730. Other's were around 760-770. Still got something insane like 8% because of lack of work history and all the other mess they spit at you. I also had to bring in the good ol pops to cosign. I say if you really want the car, just bite the bullet and either: 1. down something like 30-40%, or 2. just get someone to cosign. I'm thinking banks would try to rape you, they sure tried to with me. Good luck

Originally Posted by NotmyGTR (Post 100961)

So, the bank that you deal with will only give you 18K and your mad because Nissan wont finance you for 36K. R U Serious?

Originally Posted by nogoodname007 (Post 101031)

why lease and then 6.9%...