Hey guys, I am desperate right now. I’ve been looking for a car for a month already, I earn enough to afford a lease, I just don’t want to commit to a car for more than 12 months at this point. My credit score is 725 and I just got declined by BMW today. What should I do? Can anyone provide advice? I really need a car within the next month, my budget is $350/month or Max $5000 If I we’re to buy a car. Which option would you suggest? Appreciate any advice🙏
From which scoring model and bureau? Have you leased before? Had an auto loan before?
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From Experian I assume, but my score is 725 there, Union is 730 and Equifax is 720. No loan or lease before.
Have you missed an auto loan specifically from BMW today? Are you really light on credit meaning not many accounts open, nothing open for very long, etc.? Some customers have a solid score however banks are weary of the lack of total credit history, current income, etc.
I’ve never had a lease before, I have 4 accounts open and the credit consumption is 39%, perhaps that is one of the reasons? I just don’t know what to do now.
How long have you had those accounts for? Paying down that 39% would help your credit score but might not get u approved if you are young with limited credit history. I would look at other non luxury brands since they are less strict on credit.
The credit utilization is a little high, along with no loan/lease history, even with a solid credit score (I’ll assume those are all FICO v2).
Totally understand wanting to take over a lease with 12-ish months left, you may want to consider a non-highline brand the first go-round: VW, Toyota, Ford, etc.
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Got it, thank you so much! I’ve been looking at all brands honestly, Toyota just takes two months to approve. But I will keep looking. If there are any fords in mind, please feel free to send over!
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Here’s another option - go with a brand new Toyota (find one for a very good deal, perhaps come down to OC and work with @Cody_Carter) and then transfer it by the 12-mo mark. Given that TFS transfer price is only $200, that may be easy enough to move without an incentive, again, assuming you got one at a good deal to begin with.
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What does that even mean? Maybe just Turo or Uber until you want to do something more long term
I thought there is a rule that says any time you apply for credit and are denied you must receive written notification of the reason why you were denied. Might not help you immediately but at least you know the specific reason.
I have no idea if they allow lease transfer but you you might have a shot at Lexus if you want to stay with a premium brand. Depending where you are geographically they share the same underwriter as Toyota so they might be forgiving.
An FCRA notice is sent by mail, yes. My guess is it will say “insufficient credit” but not say specifically where it fell out.
Or get a weekly rate from a car rental company. I wouldn’t panic to and so something today, but:
Because the score itself is so close to the edge of A Tier, and the pull will have an impact, were it me I would want to hang something in the next 30 days. Others will disagree but that’s me.
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Yeah don’t bother with Toyota. Everything is snail mail, and it’s slow slow slow…
And that was before covid, can’t imagine how much slower they are now.
Buy a Toyota or a Honda (they are the easiest cars to resell) with a small loan from a credit union and build up your auto credit.
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Agree with not going with places doing snail mail…shipping hundreds of US First Class packages a day and some are coming three weeks later
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I love that idea. Thank you so much!
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If the person who you were taking over the lease from had a credit history that was better than the new leasees, I believe this can lead to them declining the transfer, even if the new leasee still has what is considered good credit.
How about getting a cosigner? If you get a cosigner with 760 credit, you will be approved.
Just of out curiosity
If I can make a one-time payment, will BMWFS approve my lease application despite other factors? (like low credit score, non US. Person status)?
It may help, but it’s not a catch all solution to the problem
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No, no and no.