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Old 06-05-2015, 11:19 AM   #1
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What a pain in the butt!!

I have been through 4-5 credit unions already, with no luck. The main reason being I don't have any "relate-able" loans on my credit... Which is ridiculous to me. I have 5 or so lines of credit (car loan, student loans, and a credit card) open that I have ALWAYS been current on and pay more than I need to each month on. My score is a 690 and I make $1800 a month or so... The RV I am purchasing for $28,000 NADA value is $39,000... The loan would be in their favor if anything with south.

So whats the deal?!

I am frustrated - 25 years old and trying my best to build my credit but stay with in my means, which is why I don't have any other 30,000 dollar loans. I am responsible with my money and that's what seems to be the problem... Our financial institutions are so upside down its annoying.

I guess I am posting this as a rant... But also in hopes of some advice... What should I do next? I have another credit union processing my application now (crosses fingers) but from here I don't really know what to do.

Anyone have suggestions or ideas? Credit unions they suggest in Colorado or some other means of finding $28,000? Haha.

Anything helps at this point. Im almost tempted to start searching for a single person who wants to write up a contract with me for $28,000 and a certain APR that I pay them instead of the banks - haha... Takers?
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Old 06-05-2015, 11:54 AM   #2
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You probably won't like my perspective....... The credit unions are doing you a big favor, and sending you a very clear message.

Pay off your credit cards, and never, ever carry credit card debt again. If you can't pay for it when you charge it, don't buy it.

Pay off your student loans.

Pay off your car.

Then, consider a luxury item like an RV. (Some would also add, get yourself a house first too). I would also suggest at your age, save enough to pay cash for any luxury item, and if you want an RV, start out in a pop up for instance.

The last thing a financial situation wants to deal with is a repo RV. And there is no reason at your age not to get out of the debt you have, before you consider taking on any more.

Sorry......
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Old 06-05-2015, 12:10 PM   #3
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Originally Posted by Betr2Trvl View Post
You probably won't like my perspective....... The credit unions are doing you a big favor, and sending you a very clear message.

Pay off your credit cards, and never, ever carry credit card debt again. If you can't pay for it when you charge it, don't buy it.

Pay off your student loans.

Pay off your car.

Then, consider a luxury item like an RV. (Some would also add, get yourself a house first too). I would also suggest at your age, save enough to pay cash for any luxury item, and if you want an RV, start out in a pop up for instance.

The last thing a financial situation wants to deal with is a repo RV. And there is no reason at your age not to get out of the debt you have, before you consider taking on any more.

Sorry......

Sound advice here, and far better to learn from those who have lived through it than to experience the misery yourself. Never borrow money to buy a depreciating asset unless the loan interest is less than you are earning on the cash.


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Old 06-05-2015, 12:22 PM   #4
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Originally Posted by Betr2Trvl View Post
Your probably won't like my perspective.......

Pay off your credit cards, and never, ever carry credit card debt again. If you can't pay for it when you charge it, don't buy it.

Pay off your student loans.

Pay off your car.

Then, go look at a luxury item like an RV. I would also suggest at your age, save enough to pay cash for it too, starting out in a pop up for instance.

The last thing a financial situation wants to deal with is a repo RV. And there is no reason at your age not to get out of the debt you have, before you consider taking on any more.

Sorry......
1x ^^^^^ always pay yourself first. $1000 in emergency cash. 3to 6 months income in Savings, 10 -15% going to retirement plan. Pay off ALL loans, no credit cards. If you need to barrow then you can't afford it in the first place.
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Old 06-05-2015, 12:23 PM   #5
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also every time you apply it dings your score,by the way 690 is not a great (good) score
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Old 06-05-2015, 12:26 PM   #6
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Originally Posted by GypsyYears View Post
What a pain in the butt!!

I have been through 4-5 credit unions already, with no luck. The main reason being I don't have any "relate-able" loans on my credit... Which is ridiculous to me. I have 5 or so lines of credit (car loan, student loans, and a credit card) open that I have ALWAYS been current on and pay more than I need to each month on. My score is a 690 and I make $1800 a month or so... The RV I am purchasing for $28,000 NADA value is $39,000... The loan would be in their favor if anything with south.

I am frustrated - 25 years old and trying my best to build my credit but stay with in my means, which is why I don't have any other 30,000 dollar loans. I am responsible with my money and that's what seems to be the problem... Our financial institutions are so upside down its annoying.
One of the main problems is your credit score 690. Most places will not even give you a second look until you have a 740 or better. Part of that make up is your Debt to income ratio. Is that 1800 before or after taxes? If its before taxes, that is not so good. Banks/CU's figure you spend 30 percent on housing. Go to Kreditkarma.com and sign up. That site will provide you with credit reports, Fico scores and reasons why your score is the way it is. Then you can develop strategies to get your score up.
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Old 06-05-2015, 12:27 PM   #7
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I have 5 or so lines of credit (car loan, student loans, and a credit card) open that I have ALWAYS been current on and pay more than I need to each month on. My score is a 690 and I make $1800 a month or so...
Therein lies your problem. Your age and making payments on a car, student loan and credit cards and only making $1800 a month with a credit rating of 690...is not a good thing. As mentioned, you need to pay off those items and get your rating up much higher before any lending institution will take a chance on you.

Economics 101

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Old 06-05-2015, 12:29 PM   #8
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Never borrow money to buy a depreciating asset unless the loan interest is less than you are earning on the cash.
Good advice, could have paid cash for the Magna but our annuity earns more than the interest is plus we can deduct the interest just like our house.
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Old 06-05-2015, 02:22 PM   #9
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Probably owe to much and don't earn enough. My opinion buy a house first which is a appreciating asset not a loose your ass set unless you have the money to play with.
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Old 06-05-2015, 03:37 PM   #10
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My score is a 690 and I make $1800 a month or so... The RV I am purchasing for $28,000 NADA value is $39,000... The loan would be in their favor if anything with south.

1) How old is the RV?
2) What's "loan" NADA value? If you don't know that, what's the lowest retail value listed? Banks generally use "loan" value for what they'll loan on one.. It's never 100% and it gets worse and worse as RVs age.
3) You know to price these things using NADA without options, right? I see dealers adding in options that were base to the model all the time.
4) 1.8k month x 12 months = $21600. You didn't mention if that's gross or net, but it's not a lot of money. An RV can EASILY eat a few months of your salary.. And I mean easily. Average household income is 50.5k in the US.. For comparison, my home doesn't cost as much (in % of my income) as what you're asking for in loan on a depreciating asset.
5) A 690 credit score isn't bad. Generally, you need over 750 for the best rates - and for "hard" to reach credit items like older RVs.

I can tell you just by looking at your income and what you want to buy, this isn't a good financial choice... Not trying to be judgmental, but there'd be no way I'd try to buy an RV that is the same % of my income...

My suggestion would be not to do it. You're not indicating if you're going to live in it or what the deal is, how old it is, etc - but at your income level I'd never buy an RV (or a boat - or anything along those lines).

If you're going to "full time" in it - consider a travel trailer. Lower cost of ownership. Less risky financially.

RVs over 10 years old - even with "perfect" credit, high income, no debt, banks don't want to loan on them. A few will, but it's right on the line.
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Old 06-05-2015, 06:13 PM   #11
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Originally Posted by Betr2Trvl View Post
You probably won't like my perspective....... The credit unions are doing you a big favor, and sending you a very clear message.

Pay off your credit cards, and never, ever carry credit card debt again. If you can't pay for it when you charge it, don't buy it.

Pay off your student loans.

Pay off your car.

Then, consider a luxury item like an RV. (Some would also add, get yourself a house first too). I would also suggest at your age, save enough to pay cash for any luxury item, and if you want an RV, start out in a pop up for instance.

The last thing a financial situation wants to deal with is a repo RV. And there is no reason at your age not to get out of the debt you have, before you consider taking on any more.

Sorry......
My credit card is to Victoria secret - I never owe more than $100 dollars on the card, and pay more than the minimum payment every month. I did it to have an open line of credit without having an actual credit card.

I don't buy stuff I cant pay for - the accounts I DO have are simply to GAIN credit - not to spend out of my limit.

I only have $2,000 dollars in students loans and I pay extra on them every month. I also only have $2,000 left on my car loan - and I am paying all of these things off early.

Buying a house is WAY more of an investment than an RV. Also, considering the fact that I am buying this RV to live in it FULL TIME, all of my rent money every month that I am basically throwing away to someone I don't even know - will be put towards the RV.

I appreciate your advice but I believe what I am doing is the right thing and that the right credit union will see its a good investment on their part. Thanks for your reply though.
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Old 06-05-2015, 06:16 PM   #12
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1x ^^^^^ always pay yourself first. $1000 in emergency cash. 3to 6 months income in Savings, 10 -15% going to retirement plan. Pay off ALL loans, no credit cards. If you need to barrow then you can't afford it in the first place.
I am borrowing to GAIN credit.

Its HEALTHY for your credit to have more than one line open at a time.

Yes, I should probably borrow less. But the deal I got on this RV is to good to pass up ($28000 for an RV well worth 39,000) - so I think I am doing the right thing.
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Old 06-05-2015, 06:18 PM   #13
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also every time you apply it dings your score,by the way 690 is not a great (good) score
That's not what the credit unions have been telling me. They do say if it was 700 it was be a lot easier to get a lower rate...But my credit score is not why I am having trouble getting approved, its that I dont have any "relate-able" items on my credit. as I said in the original post.
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Old 06-05-2015, 06:23 PM   #14
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Therein lies your problem. Your age and making payments on a car, student loan and credit cards and only making $1800 a month with a credit rating of 690...is not a good thing. As mentioned, you need to pay off those items and get your rating up much higher before any lending institution will take a chance on you.

Economics 101

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I have almost paid off my car, my student loans only add up to 2,000 - and I pay extra on everything each month. The only credit card I have is to Victoria secret and I only owe $100 towards at the most any given time, which I also pay off really quick... (ALL OF THIS TO ESTABLISH CREDIT, of course.)

Almost $22,000 a year may not sound like a lot to some people, but with my casual lifestyle I don't have hardly any extra expenses. I am also planning on FULL TIMING the RV - so the 400 dollars or so I spend on rent will be doing towards my payments - so that makes things a lot easier.

This will be my home, not a "Luxury" item.

I appreciate all the advice, but I am still going through with my plans - because its what feels right and its what I need to do.
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