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?
Haven’t run into that nonsense. I bank with a Credit Union, and they tend to treat me like a person.
That’s a great point! Getting a car loan from a credit union where I have banked with for years has gone well for me, as well.
Yeah – I’ve literally been at the same CU for decades, got signed up as a kid by my parents. A small (like 5000-10000 members?) local community credit union. I’m an old grumpy guy now with a mortgage and all that crap. Didn’t even bother with a mortgage broker, as the rates I was offered were pretty good based on sites like ratehub, and they were flexible on a few of the ‘standard’ requirements that I was sorta borderline on (like gds/tds and ltv). Almost have it paid off now, faster than anticipated in part because they were also pretty flexible on my repayment schedule. When its term renewed, I asked if I could just overpay a bit more regularly in addition to the once per year lump sum and they were cool with it. Even though my longer term GICs and whatnot are ‘slightly’ worse on rates than I imagine I could get if I went elsewhere, I’m totally fine with that if it lets em keep doin what they’re doin for the next generation.
I am a little concerned they might not be around in 10 years though, cause Canada (where I’m at) is seeing smaller financial institutions disappear left right and centre – mergers to try and get big to be able to pay for govt regs and payment industry stuff. As soon as the management is ‘national’, from what I’ve heard, they basically just turn into banks for customer service, and you become a number.