Why Can't I Get a Car Loan?

First to whomever reads this it is a bit lengthy but i’m extremely baffled.

I am a 25 year old part time college student living at home and i’m currently employed as a server. 8% of my sales are automatically declared on my checks as part of a deal with the IRS(8% sales or credit card tips whichever is higher). I have a 748 credit score with no debt and no bills/loans on my credit report. I have almost 3 years of credit history with 3 active credit cards totaling ,100. I have never made a late payment, i’m always early actually. Also I am a first time car buyer.

My current check-stubs show ,471.16/month. I also have my W2′s from the last two years which show just under 00/month on the eldest and 70/month last years. I have all my paychecks from the past 3 years and after comparison they are all pretty much the same(meaning the paychecks are nearly identical based on the previous pay dates – My first check in July was like a clone of last years July check etc).

I have now tried five times to get an auto-loan with zero luck. I do not have a co-signer by the way.

The denial I just received this morning has me completely baffled. It is my actual bank and I requested a loan for ,000 previously for a Toyota Tacoma. Note: My credit score was only 739 that time and I didn’t offer to put anything down. I was approved for ,000 without a co-signer and ,000 with one. Knowing that getting anything in the over ,000 range won’t happen until I get a different job, I opted for a Kia Soul. I found a brand new one for ,000 that already had tags. This time my credit score was 748, same deal no debt or dings, I offered to put ,200 down, and I was approved for ,000 with a "really good co-signer".

I am so lost it’s crazy, my head just hurts trying to figure this out. Am I supposed to buy a cheap, busted up vehicle and make a terrible investment in order to get a loan for a good investment? By the time I pay for the inevitable repairs on a vehicle with 60k+ miles the amount invested would probably equal what I was asking for in the first place. I feel like i’m being punished for doing what is asked of by the credit industry.

Annoying note – My boss shows ,200/month and just bought a Truck for ,000, but the kicker is the place couldn’t find his credit. It wouldn’t appear in their system but they just gave it to him anyways.

So there is my wall of text, can anyone offer me any advice or anything, seriously anything at all?
I have 98% of my total credit free. I only use one of the 3 cards and it is for daily expenses only.
MadMan – I am a waiter, what shows up on my checks is not what I make. My checks show 00 when in reality I make 00-00/month(00 is a very bad month). So asking for a loan that would require a payment 4/month is not over doing it.

Reena I stated multiple times that I pay off everything monthly. Out of a potential 00 debt I carry only 2%-4% depending on the time of the month.

Thank you for the responses so far.

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3 Responses to “Why Can't I Get a Car Loan?”

  1. Banker Says:

    You have a lot of numbers here, but not all of them. What is the debt to income ratio? That is, how much do you take in and how much goes out every month right now? If the ratio is really high, many lenders will not consider the loan solvent because of your perceived inability to repay. Another number missing is the time between the two loan requests. Remember that the lending arenas are shrinking, and credit is becoming harder to come by. If both of your applications were done at the same bank, that could be the reason for the reduction in available credit. If they were done at different banks then you have your answer, different banks, different policies.
    You say you have 3 years of good history and a high score. Ok that’s good. But even the most qualified people are having difficulty borrowing now. Don’t be discouraged, but don’t shop your loan around to every lender either. A blitz of inquiries like this a grouped together so they will not hurt your score that much, but it does not look that good either.

    I hope you find a lender that will work with you, but if you do not, remember that it is not entirely tied to your ability to borrow, but also to the bank’s ability to lend. Many credit unions and smaller banks have not tightened their portfolios as much, check with them and you may be happily surprised by what you find

  2. MadMan Says:

    You answer your own question – you ar5e trying to borrow too much money for your salary. You have not been denied, your eyes are bigger that your wallet.

  3. Reena Says:

    It is real simple….. you don’t make enough money and have already a large debt load.
    Consider yourself lucky to have the three credit cards… because nowadays you would not even get approved for the credit limits you have. While you make your minimum payments on time you also carry $7100 in debt already. Minimum payments are what a credit card company loves… but they don’t help your credit score. Bringing the outstanding balance down to Zero on a regular basis… that is what impresses the credit bureaus.

    You have been pre-approved for 10K…. why are you still trying to get a loan for more than twice of that?
    The bank has offered you what they think you can handle… and that decision does not change much from bank to bank.

    Your Boss… is older, makes twice as much as you do… and has a long established credit file. Don’t be fooled… "credit files" don’t get lost… they are tied to the Social Security Number. He may also have additional collateral that you don’t have.

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