Auto loan denied...why?

[PriusFan]

I am a 20yr old female. I have had a credit card for a little over a year now. Starting limit was $500, now it is up to $2000. I pay my credit card off before it's due. I did have student loans that I paid off. My credit score is 718. I make (average) $2,400 a month. I pay my college tuition using my credit card (but I pay it off before it's due) When I applied for my loan I had a 37% credit available on my credit card due to college. I have a higher percentage now because I paid it off. Could that be the reason why they denied me? I have $4,000 in the bank right now. I applied for a $23,000 loan in 4.5yrs. I live with my parents. My other bills consist of my cell, gym membership, and car insurance. Could it also be because I haven't had credit long enough, is the amount that I asked too much? I am need of a new vehicle to get back and forth to school and work, I want to buy a hybrid for gas and environment. The 2008 Honda Civic Hybrid is my choice! Also I applied through my bank! Thxs

[bracken460667]

The fact that you are a young student living with your parents probably is the biggest factor working against you. You have not shown that you can be responsible by paying rent, utilities and the like for any length of time.

[AudiBuyer]

You've only got a couple years of credit history, and you're applying for a 4.5 year loan. Your only significant credit history comes from a credit card with a pretty low limit, and you still held a balance when you applied for the loan. As a college student living with your parents, your life isn't exactly stable right now either.Look, I'm sure you're a responsible person, and don't doubt your abilities to make the payments. But dedicating that much money to a car at your age in your situation is just not a good idea. If you financed the full amount you're looking at a payment of around $500 a month. If you bought a car with a payment that was half that much and put the rest in the bank, you'll have over $14,000 in the bank (including interest earned) in 4.5 years. Wouldn't it be nice to have that money for a down payment on a house or condo when you get out of school? Or would you rather drive a slightly nicer car for the next four years and keep living with your parents until you're 30?Do yourself a favor, and find a nice used Civic in the $10,000 range. You might not be as exciting right now, but you'll be much better off in the future.

You should be able to find the info you need online. Just type in the key words into google and you should get some useful sites. I had a quick look and found a couple for you. This site has useful info such as applying for a car loan and this site on car loan news. Good luck with your search.

[sanilasmith]

Nice way of thinking.Wish you all the best for your best job that you are thinking of.Its really a great thought of buying such a car.I'm sure you will definitely get loan to fulfill your dream to buy that wonderful car.



BMW Corner Lights

[Phil]

Personally, I wouldn't even try a bank. I'd join a credit union since they are customer owned and not for profit like a bank is. They are there solely to serve the members and are much more friendly in regards to loans. Mine, which is OBee credit union even offers a discount on green car loans.
Hope this is of some help for folks next time they're thinking about an auto loan.
Phil