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Apparently having good credit isn’t enough, unless you’ve already pledged loyalty to the debt system. (lemmy.world)

submitted 4 days ago* (last edited 4 days ago) by Camzing@lemmy.world to c/personalfinance@lemmy.ml

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Just went through a mess trying to finance a used car. I haven’t borrowed money since 2012, no debt, no credit cards, just living within my means. When I applied for a loan, I was told I was refused. Not because of bad credit, but because I hadn’t used credit recently enough.

The dealership advertises “no applications refused,” but apparently if you don’t have an active debt history, you’re too much of a mystery for the system.

Co-signer? Not allowed. Using my own bank account for payments? Denied. Their solution? Open a joint account with my dad just to satisfy a bank’s paperwork, pay hundreds in fees over 6 years just to make it work.

The credit system says you can't borrow money unless you've already been borrowing money, like somehow living within your means disqualifies you. It's not about good credit, it's about loyalty to the debt game. Screw you for standing on your own feet, I guess.

Just needed to get that off my chest. Anyone else run into this nonsense?

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[–] litchralee@sh.itjust.works 2 points 4 days ago (1 children)

Co-signer? Not allowed.

This is the part which confuses me the most. My personal experience has never come across any sort of lender which wouldn't allow cosigners. Sure, some means-tested home loans won't allow cosigners that don't meet the same means-test as the primary borrower, but they still permit and actively want qualified cosigners. As a matter of underwriting, adding a cosigner always increases the likelihood of collecting on a defaulted note, reducing risk for the lender. There's zero financial sense for a lender to not allow a cosigner.

I hope you found a different used car lender, ideally one which offers something more reasonable than a 72 month (!) term.

[–] Camzing@lemmy.world 1 points 4 days ago (1 children)

This is a dealership.

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