I went to my local credit union today to apply for a loan for my '06 when it comes in later this week/next week. After giving them the info requested, they looked at my credit report, and I was told the best they could offer me was 7.8% for 60 months. I balked at that, and explained to the rep that I looked up my own credit report only a week ago, and had no outstanding debts/payments (heck, I've never made a late payment on anything in my life) and that I had a credit score of 735. He then told me according the credit report, I had NO credit score (also, he used the same service, Experian, I did to find my score). I told him that can't be right and he agreed that something was odd, and he told me he'd look into it and come back to me in 10 minutes...

After about an hour, he basically told me that he couldn't do anything else, and that 7.8% was the best I was going to get (based on 'a national average of credit scores...'), so I told him I'd look elsewhere and went home in disgust.

When I went home, I applied for a loan from E-Loan, and was declined for pretty much the same reasons as above.

I then tried to apply with Ford Credit, and had the same result.

Right now, I am EXTREMELY frustrated, and quite frankly have no idea what to do at this juncture. :bang: I'm half-tempted to the call the dealer and tell them to give my car to someone else, that is, if I could could have my deposit refunded (which they told me they won't, even though I was told differently when I made my order...).

Are you saying that Ford credit turned you down or ofered a rate similar to the credit union? If your score is 735 as you say then the only thing I can think that would affect the creditors decision is that htere is no history of that high of an auto loan in which case they would rate your a little higher.
If you do have a good history, you should be able to get a rate in the 5-6% range.

This is all I got back from Ford Credit re: my application

'We were unable to approve your application online.'

You need to fill out an application at your dealer. They will work to get you a good rate. The online applications can be useless.

You may want to contact the credit agency, there could be something like a "fraud alert" on it which would give back a "no credit" or a "decline" score. Check with them

That's also possible. I had the same problem when I went to get a Jeep loan. After a week of chasing my tail, I came to find out MasterCard had fat fingered my SS# changing the last 2 digits, giving all my credit score info to someone else, and giving me no history.

Also, like recommended above. try Ford in person. A dealer can have ins that you won;t have access to. I've financed my last 5 cars through them, no problems. I've also always gotten far better rates from them, then other sources as well.

They want to sell cars, so they'll work to get you the best possible rate.

On a side note, the credit score you recieved from doing your own score can differ from the score at the bank. If you put in the info online it may have been towards a mortgage score by accident opposed to an auto loan. That has happened before.

I agree with Ed and the rest of the guys that you should go into the dealership as they may be able to help you out! :nice:

Whats the update on this? Did you go to the dealer?

Prime rate for most lenders is over 6.5% buy rate right now. So without a promo rate from a manufacturer the days of 4.9 are going bye bye. Its only a matter of time before Credit unions raise the rates slightly. If you have less then 2 years of steady car payments, thats about right for a rate. There are plenty of young people with 750+ beacons that have had only a Kohl's card-which does not translate to ANYTHING for car credit.

If you were buying say a Focus with rebates, where the loan percentage or ratio would be much better(because you're about $2000 under invoice-or the 'loan rate' for new cars). It might get you a point less interest. You really won't hit tier 0 rates without more then a 750 beacon with prior perfect auto/home history. I'm surprised you even quallified without a cosigner to be honest with you.

Well, I finally made the 190 mile drive to the dealer, and took delivery of my GT. :banana:

However, in retrospect, I should've gone with the credit union's 7.8%.... :crying:
(PM me for details)

well, I got 4.8% interest on mine when i went to the dealer. We bargained him alot and almost left. I'd have to look at who it was they went with. It was a common one i think. Just looked at it and it was thru Chase. I got 3 yrs payment for @290. Put 10k down.

<--------------- My Car info

However, in retrospect, I should've gone with the credit union's 7.8%.... :crying:
(PM me for details)
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My credit union "bought" back my loan a month after I got my vehicle, if there is no pre-payment penalty contact your credit union, you may still be able to have them finance it at 7.8%

Big difference between $10000 down/36 mo and 0 down/60 mo. rates are also rising constantly...