Kia Finance rejected me for a loan

[Mr. Wonderful]

I recently purchased my Stinger and took the financing option to save an additional $2k.
I received a letter from Kia Finance dated Mar. 5 telling me my credit report shows I don't
qualify for the loan! I was floored. The finance amount was a hair less than $10k.
The reason for my shock at being rejected for this small loan is:
1). I paid cash for my 2016 Corvette conv.
2). I paid off my mortgage on my home years ago.
3). My credit report dings me for not having enough credit cards! and no credit history
as I pay off my cc in full each month. I only have 2 cards.
4). Have never had a late credit card payment (pay in full every month).
5). I traded my 2018 Genesis G80 Sport for the Stinger (which I paid cash for),
so I ended up almost $10k shy on buying the Stinger when all was said and done.
I have not heard from the dealership, and am wondering what they plan to do now?
I really don't see how this could happen, as they ran my report at the dealership.
The report was from Equifax, which I believe most dealers use to run the reports.
My salesman did call me soon after I bought the car to unfreeze my Trans Union account
so they could check that one. I don't know what happened after that.

 

[Kamauxx]

Get a loan from your bank. I never go into a dealership to buy a car unless I've already secured financing. Lines of credit aren't a bad thing. The better your ratio of available credit to used credit the better your score will be. If you have $100k of available credit and have a $0 balance you should have a score over 800 (assuming no other derogatory marks)

Curious, I just sold a house a few days ago. Did your credit score drop after the house was removed from the report? My car is paid off, I have 7 or 8 open lines of credit all with 0 balances. It would really suck if my score drops because I've become 100% debt free.

 

[Callum]

Here's why...

You pay cash for everything. The bank further reviewed your payment history, which you probably have very little of and denied it. It doesn't matter if you have $40M in the bank, they want to see payment history. My father had the same issue and he collects exotic cars...

It's the beauty of banks!

 

[terrelltechsup]

Unfortunately in this whacked out world we live in, lending institutions care more about your ability to maintain some dollars in credit carried forward so they actually make money on the credit they are extending to you. Carry over 200 bucks for about 3 months on each card and see what happens. Both my wife and I have over 800 credit scores because we took the time to make it happen. It is all a shell game. Find someone in the game that can tell you what the rules are and you can fix your problem in about 3-6 months.

 

[terrelltechsup]

Get a loan from your bank. I never go into a dealership to buy a car unless I've already secured financing. Lines of credit aren't a bad thing. The better your ratio of available credit to used credit the better your score will be. If you have $100k of available credit and have a $0 balance you should have a score over 800 (assuming no other derogatory marks)

Curious, I just sold a house a few days ago. Did your credit score drop after the house was removed from the report? My car is paid off, I have 7 or 8 open lines of credit all with 0 balances. It would really suck if my score drops because I've become 100% debt free.

It likely wont go down. Mortgages are a different ball game because you have real property that has real value that can appreciate over time.

 

[DaBears4Lyfe]

Unfortunately in this whacked out world we live in, lending institutions care more about your ability to maintain some dollars in credit carried forward so they actually make money on the credit they are extending to you. Carry over 200 bucks for about 3 months on each card and see what happens. Both my wife and I have over 800 credit scores because we took the time to make it happen. It is all a shell game. Find someone in the game that can tell you what the rules are and you can fix your problem in about 3-6 months.

Never thought about carrying a balance over, but that would make more sense than not. Somewhere around 20% should be good. My credit is solid in the high 680s but no where near 800! lol

 

[terrelltechsup]

Ya your debt to income ratio is only one small piece of the puzzle. You have to make the whole puzzle to get in the 800s. My wife is actually almost 900 now.

Automobile Lenders FICO Score range is 250-900. It will be slightly different than your FICO Overall Score. This score puts the most weight on your auto loan history.

Also, many credit card lenders use the 250-900 range, the FICO credit card specific score.

 

[Rob M]

Some key questions here are:

What happens to the $2K financing rebate if KMF will not extend you a loan?

Does the dealer still have your trade?

What does the rescission letter instruct you to do?

Worst case... I wouldn't be surprised if the dealer, KMF, or a combination of the two are legally conspiring against you. Most purchase agreements are contingent upon final approval by the lender. Buy letting you drive the car around for a few days you are suckered in. Your original loan application is rejected for whatever reason (none of the reasons you list above seem legit). The dealer will likely shop and offer you another loan under less favorable terms. KMF most likely rescinds the $2K rebate since you aren't financing with them. The dealer may have already disposed of your trade or at least claim to have. The trade-in is technically a separate sale transaction (at the trade-in price) so even if your Stinger purchase contract is rescinded and you elect to walk away, you turn in the keys and get your trade value back, but no longer have a set of wheels. Make sure that the loan application that KMF is using has all your information correct (income, residency, etc.). The dealer can input something wrong that causes an application rejection, either unintentionally or intentionally. They can also run your credit multiple times which will lower your rating somewhat.

I hope it's none of the above for your sake, but somehow those tricks are rampant ad often times legal. Good luck.

 

[DaBears4Lyfe]

Some key questions here are:

What happens to the $2K financing rebate if KMF will not extend you a loan?

Does the dealer still have your trade?

What does the rescission letter instruct you to do?

Worst case... I wouldn't be surprised if the dealer, KMF, or a combination of the two are legally conspiring against you. Most purchase agreements are contingent upon final approval by the lender. Buy letting you drive the car around for a few days you are suckered in. Your original loan application is rejected for whatever reason (none of the reasons you list above seem legit). The dealer will likely shop and offer you another loan under less favorable terms. KMF most likely rescinds the $2K rebate since you aren't financing with them. The dealer may have already disposed of your trade or at least claim to have. The trade-in is technically a separate sale transaction (at the trade-in price) so even if your Stinger purchase contract is rescinded and you elect to walk away, you turn in the keys and get your trade value back, but no longer have a set of wheels. Make sure that the loan application that KMF is using has all your information correct (income, residency, etc.). The dealer can input something wrong that causes an application rejection, either unintentionally or intentionally. They can also run your credit multiple times which will lower your rating somewhat.

I hope it's none of the above for your sake, but somehow those tricks are rampant ad often times legal. Good luck.

Damn thats fd up.

 

[Mr. Wonderful]

Get a loan from your bank. I never go into a dealership to buy a car unless I've already secured financing. Lines of credit aren't a bad thing. The better your ratio of available credit to used credit the better your score will be. If you have $100k of available credit and have a $0 balance you should have a score over 800 (assuming no other derogatory marks)

Curious, I just sold a house a few days ago. Did your credit score drop after the house was removed from the report? My car is paid off, I have 7 or 8 open lines of credit all with 0 balances. It would really suck if my score drops because I've become 100% debt free.

I do not need a loan to pay off the Stinger. I just applied for the loan to save the $2k.
If I don't have the $$$ to buy what I'm buying then I just wait until I do. I never take out loans.
I did take a mortgage because of the large amount, but decided to pay it off when I had sufficient
funds in the bank and it wouldn't effect my lifestyle. I can easily pay off the $10k, but curious as to
what the dealership will do about my loan denial. As I recall.... I dealt with the finance mgr. to buy
the car. I've probably known him for about 8 years, and he just asked how my credit was and I told
him I'm just below 800. He couldn't get through to Equifax due to my freeze on my account, so he
had to wait a day or two until I took the freeze off. Then I get an email from him asking me to take the
freeze off my Trans Union account, which I did. I didn't hear from him since that time.

Kamauxx.... I have no idea if my credit score dropped when I paid off my mtg. My credit score was
never really a concern for me, as I'm squeaky-clean. I always pay for my cars in cash. Don't know the
last time my credit score was checked by anyone else but me. At this point in my life (I'm almost 72)
really couldn't care less. Still very curious as to what their plan on my pending loan will be.

 

[TwiceStung]

Unfortunately in this whacked out world we live in, lending institutions care more about your ability to maintain some dollars in credit carried forward so they actually make money on the credit they are extending to you. Carry over 200 bucks for about 3 months on each card and see what happens. Both my wife and I have over 800 credit scores because we took the time to make it happen. It is all a shell game. Find someone in the game that can tell you what the rules are and you can fix your problem in about 3-6 months.

Yes, things are so whacked out in the present world that my wife can have a credit score of nearly 900, mine in the low to mid 800’s, and we have so much debt it isn’t funny. The folks who dont have debt get dinged. Just an amazing thing.

 

[Rob M]

I do not need a loan to pay off the Stinger. I just applied for the loan to save the $2k.
If I don't have the $$$ to buy what I'm buying then I just wait until I do. I never take out loans.
I did take a mortgage because of the large amount, but decided to pay it off when I had sufficient
funds in the bank and it wouldn't effect my lifestyle. I can easily pay off the $10k, but curious as to
what the dealership will do about my loan denial. As I recall.... I dealt with the finance mgr. to buy
the car. I've probably known him for about 8 years, and he just asked how my credit was and I told
him I'm just below 800. He couldn't get through to Equifax due to my freeze on my account, so he
had to wait a day or two until I took the freeze off. Then I get an email from him asking me to take the
freeze off my Trans Union account, which I did. I didn't hear from him since that time.

Kamauxx.... I have no idea if my credit score dropped when I paid off my mtg. My credit score was
never really a concern for me, as I'm squeaky-clean. I always pay for my cars in cash. Don't know the
last time my credit score was checked by anyone else but me. At this point in my life (I'm almost 72)
really couldn't care less. Still very curious as to what their plan on my pending loan will be.

Tell KMF you would like to give them $9,xxx in cash as collateral for the loan and see what they say.

 

[Mr. Wonderful]

Here is the letter from KF.
The letter shows my credit score as 737, but when I last checked (perhaps a year ago)
it was just below 800 and nothing has changed.

 

[NHRA7]

Here is what i did and im 66. My credit score is 825 i traded in a Corvette as well that was paid off instead of giving them the balance which came out to a little over $5200 i financed it for 24 months. Why people ask.. Because it keep the credit rolling and the score high. Yeah i could have just wrote the check and drove off but with the loan and my Credit Cards it keeps the FICO score at an even keel. If ya pay off everything in cash or way to early your gonna get hurt on the score so i keep a balance moving and it keeps the score either a couple of points higher or even

 

[NHRA7]

What did your credit report show...

 

[Mr. Wonderful]

I outlined the problem they had in RED in the letter

 

[NHRA7]

ok just saw that. hmmmmmm one problem i see is your balances to your credit limits are to high... is that correct ??? Are you carrying to many balances or is that a mistake from the credit agencies.

 

[Mr. Wonderful]

Again, I pay off both my credit cards every month in full. I don't carry a balance, except what
I've charged that month. It makes no sense.

 

[Kamauxx]

ok just saw that. hmmmmmm one problem i see is your balances to your credit limits are to high... is that correct ??? Are you carrying to many balances or is that a mistake from the credit agencies.

That could be because he only has 2 cards. So the limits will be low (relatively). If the balance is zero and the limit of the 2 cards is only $5-10k it looks worse than having a small balance and small balance and $50k limit.

 

[NHRA7]

Or let me ask you this. Are you and your better half together on credit cards and any other loans because i got dinged a few years back due to having my ex as an authorized card holder on my accounts.