Community Forums

MickBrennan · 05-24-2013, 06:38 AM

Quote:

Originally Posted by JJSureshot

What really sucks is I don't have a credit card because I buy almost everything with a debit card or cash because I don't like taking huge risks that could put me in debt...

So now you want to go into debt. The banking system does not allow you to make sudden changes in their game plan.

Sorry that you feel trapped. Everybody needs some kind of credit history. You need to start small or just continue with your cash only policy.

cb1000rider · 05-24-2013, 06:44 AM

Sureshot,
They should provide you a copy of your credit report and provide you a reason for the decline.

The credit report will list the top reasons impacting your credit score.

Was it lack of credit history? Also, you know that being self-employed makes getting credit much harder, unless you've got a great history (taxes) of business income.

Personally, I'd never buy a new TT or motorhome, but that's just me... Buying used might bring things into line, depending on the reasons for the decline.

EnolaEagle · 05-24-2013, 06:49 AM

Quote:

Originally Posted by HambonesBBQ

Really? What a deadbeat. He cheats to get govt subsistence (my tax dollars) and can afford a motorhome? Hope he goes to jail. Sorry for the off topic post. I couldn't help myself. Now back to regular programming.

Maybe the guy was upset that all the abundantly rich people do the same thing, like with overseas bank accounts and tax loopholes... or the people on welfare continually milk the system because the government keeps feeding it now with smart phones and top quality internet service.

Not that I think what he is doing is ethical but what is? Credit Card companies feed what is intrusion in our lives but if I decided to do what they do, privately, I'd be thrown in a prison. Last I heard, CitiBank funds the drugs to get here so that we can fight a war on drugs

so anyone with a credit card or paying interest is feeding the beast.

Dogpatch · 05-24-2013, 07:02 AM

Even with good CC management, and a good credit score, the one that's going to get you is the "Self Employed" in a "New Business"! You have no income history. The banks don't know if you are going to be able to repay a loan.

I know this personally from past experience(a long time ago). It took me almost 1.5 years to show consistent income. I never had any credit cards either, so what I did with my bank was put $5000 in a secured GIC and took out a loan for $5000. The bank listed the GIC as security and had no problem giving me the $5000 loan. The bank watched me pay off the loan and I never had an issue after that.

jdpm · 05-24-2013, 07:09 AM

Sorry for the issues you are having. I don't know if you went through your dealer to obtain financing or if you were just asking around at the local banks. The dealer has acess to lots of banks and institutions, however, they do not have acess to your local credit unions. If you have not done so, go in to your local credit unions and talk to one of their loan officers. Often times, credit unions have some of the very best rates and can be more lenient in their lending. Phillip

vraines · 05-24-2013, 07:20 AM

This is not unusual. First, the bank should share with you why you were declined. I doubt if you can correct the lack of credit history in the short term. Most banks will discuss possible,options. Second, talk to another bank. If you were using a lending institution at the RV dealership, then those big banks probably will not do much discussing, just yea or nea. I was declined RV financing because my home and farm were paid for and did not have any recent history of making house payments! That was easy to fix.

Buying an RV is not that much different than a home. Line up acceptable credit before ever entering a dealership. If you already have financing, then you are in a position of strength to negotiate rates with institutions used by the dealerships. It works, been there-done that.

TXiceman · 05-24-2013, 07:45 AM

I was declined by a merchant on a check...about $600.00 because we did not have much recent history with the check service he used. We seldom write checks...it goes on the credit card and is paid off monthly. I was after his 3% cash discount. He finally took the check. It did not bounce.

Ken

Trent McCain · 05-24-2013, 09:20 AM

I'm relitively young at 37 and have been in business since my late 20's. I agree with the others if you must have a credit card pay the balance every month. That's what I do. I also have several businesses that extend me credit also, pay your bills ahead of time. I've never had a problem getting money either, but part of that is a solid family history and a small town. Lending institutions are more likely to take a chance. They also want a asset that will hold it's value like real estate/farmground. They don't like to chase their collateral around either. When I've needed money for business, I always made sure the finance man agreed with my idea before I ever made an intent to purchase. I'm not sure with your finances, but it seems like you're capable of making huge payments at your age. But how long will that last? I run a trucking business and right now with no crops to haul ...it's pretty dismal. The good thing is, I have lots of equity in my equipment because I ordered it all new, and when times were good, paid as much as I could to reduce and pay off debt. So IF I ever have to sell out, I'll have a pile of cash. Our house payment is very affordable incase I can't truck due to health reasons ect, my family won't be in the street. The goal is in afew years when the business debt is gone, to pay the house off by my early 40's. We have a very modest 2008 5th wheel that's suitable for weekend trips, short stays. It's in excellent shape and no lein. I'm concerned in your future with a highdollar 5th wheel and truck. You are making great money and can afford the payment, but then add taxes, insurance, fuel expense, ect. You don't have the credit to purchase it right now. The assets you're describing depreciate rapidly. Unless you can put a sizable downpayment and then pay it off early, you'll be upside down to the point where you couldn't sell it if you wanted to. Our house is a nice middle class home, I could make the morgage payment working at Wal-Mart if health forces me out of the trucking. If you're making the money you claim (and I'm not doubting you here) Why not rent a shack for a year, and save a sizable payment for a nice used rig that you could pay cash for or pay off in a year or two? Then if your business has a slow time, tanks, or you just don't feel like working hard....no worries. I'm looking forward to the day when I'm debt free....and each day I get closer. Working just to make payments is no fun. My wife says I "preach" sometimes, I don't mean to come off that way, you're young...enjoy life, make lotsa money and then enjoy it. Having nice things is supposed to be a blessing not a curse.

Trent

oldbeek · 05-24-2013, 09:54 PM

When I was in business and could pay cash for big items. I would finance them for 3 months then pay them off with cash to build credit history if needed.

JJSureshot · 05-25-2013, 09:44 AM

Hey all thanks!

just to clarify: I wasn't declined because of bad credit history. I have no credit history and have until August to find an RV :/

flaggship1 · 05-25-2013, 09:58 AM

Quote:

Originally Posted by JJSureshot

Hey all thanks!

just to clarify: I wasn't declined because of bad credit history. I have no credit history and have until August to find an RV :/

No credit or bad credit - same solution - building good credit. The days of extending credit - especially home and RV loan credit to anyone that can "fog a mirror" are mercifully gone. The odds of building good credit between now and August are next to none.

Find a credit union and see about establishing accounts - business and personal - and maybe someone will work with you. I have read some of your posts and the threads you have going and not sure what your intent is or why you must buy a Motorhome or RV so quickly.

I looked for about a year for the one we have now - others find them quicker but even experienced buyers would be pushing hard to just "buy an RV" in two months. It can be done - but you have a lot to learn and a mistake or misstep could be costly and hard to get out of, and especially so if you have a loan to cover on exit. JMHO - YMMV

JJSureshot · 05-25-2013, 10:30 AM

What sucks is I pay all bills on time.. There should be a different type of system that plays into rent, phone, electricity and counting them towards credit even without a credit card.

Anyhow just sucks that someone who has gone bankrupt, destroyed their lives in debt, and doesn't pay anything on time has a better chance of getting financed than I do :/

Trent McCain · 05-25-2013, 03:38 PM

Ain't that the truth. I see it everyday being in a small town you know who's done it. They have the new cars etc. I couldn't take it if I wanted. First off my family taught me better, and second I have equity in my equipment that would more than pay the note against it and pay my home off too. So if times get tough, I've got a way out. Do you listen to Dave Ramsey? I think he mentioned a credit scoring system one time based on paying your monthly bills as he doesn't believe on borrowing for anything other than a house. I don't agree with everything he says, but I understand why he says it. He says no to credit cards use only debit cards. I disagree IF one pays their card every month. But they would have to exercise control. With a debit card, you're done when the acct runs dry. Might give Dave a listen

Trent

Coaster1 · 05-25-2013, 04:12 PM

Quote:

Originally Posted by JJSureshot

Arg!

I put in an application for a 5th wheel toy hauler the other day and just found out I was declined financing.

It's a huge pain because I make good money online and have never been late on any payments in my life, so far.

What really sucks is I don't have a credit card because I buy almost everything with a debit card or cash because I don't like taking huge risks that could put me in debt...

Now what to do :/

I put in an application for a 5th wheel toy hauler the other day and just found out I was declined financing.

On the previous thread you started on this same subject, you were warned by another member that this could/would happen.

So, save a ton of money for a good down stroke, get a cosigner, use the title of the any vehicle you own as additional collateral. Initially you wanted a toy hauler so I assume you already have a truck with with which to pull that or any other trailer. If you don't already own a truck and are trying to float the whole package, lottsa luck. Best of luck to you in your quest.