Financing Issue(s) getting financed?

[PILOON]

My credit story.
Years back I wanted $500. to buy a 'real deal' car but was refused the loan due to lack of credit history.

The bank clerk told me to go across the street to Houshold Finance (HFC), take out a $50. loan and repay it promptly to establish a credit track.

Borrowed the $50. on Monday, paid back on Tuesday and on Wednesday the bank gave me the $500. loan.
OH, and I tripled the investment on the car deal.

I'll bet my credit rating today would be super low as I use mostly cash and my credit card is set up at the bank to be automatically paid on the due date.
Other than utilities I have no commitments and pay cash when I buy a vehicle.

Last vehicle purchase was a tough fight as the salesman tried every trick in the book to tempt me to finance but I persisted.
Then they even did not trust the cashier's check and actually phoned to confirm the authenticity.
Next I needed a written proof that the car was insured before I could leave the lot.

 

[Leejohn]

I don't get it either! This is like me saying, "You should of seen what I did yesterday and then everyone telling me what they did." I see this stuff on a place that's called face book or something like that.

 

[mile9c1]

Not necessarily. I have been 100% debt free for years. No mortgage, no vehicle loans, nuthin'. I have a high credit limit, use only a small percentage of it, and pay in full every month. My credit score is always over 800.

Actually you just proved ovrszd's point. The system has kept you in debt (every time you use your credit card you are borrowing money, which literally makes you "in debt"). Also you have to try to trick the system just to stay in the game. Like ovrszd says, it's soooo stupid :thumbdown:

 

[ovrszd]

Not necessarily. I have been 100% debt free for years. No mortgage, no vehicle loans, nuthin'. I have a high credit limit, use only a small percentage of it, and pay in full every month. My credit score is always over 800.

Soooooo,,,, where's the value in that?

 

[ovrszd]

My situation matches yours, except for the FICO score. I obtain my score each month through my bank credit card (the only credit card I use) and that score holds steady at 785.

According to the info accompanying the FICO score, my score is affected by (1) lack of recent installment loan information and (2) too few accounts currently paid as agreed.

As I don't plan to take out an installment loan or open new credit card accounts, it looks like I am stuck at 785.

Steve

And you would be the best borrower a lender could find. Pretty stupid huh.

 

[tractorshopper]

I always hovered at the 783 to 786 range point until one day my daughter had my debit card and I actually had to get gas or pay something somewhere with my credit card (which I stopped using a while back and took me a long time to pay off). My very next cycle on Experian.com (to which I subscribe as a monthly credit monitoring service) showed my credit at 806 with one of the positive statements saying recent credit card activity. Yes, they rig the scoring system to whatever degree to encourage some debt or some use of credit cards and reward that with points.

 

[hystyk24]

Sorry to have been away and not responding to this thread... Let me first say I called it Kubota Central Loan, meaning their own financing arm. BUT my question was more about listening to others, not my issue specifically. I do realize many here wanted to know specifically my issue.

I am a person with an 820-830 credits score my entire adult life, but currently have an ongoing (3 years) foreclosure. For that reason I would never fill out a credit application even though I have a 640 credit score with excellent marks in all categories with ONE derogatory entry, the mortgage in foreclosure. HOWEVER, I have a 60 month history with Kubota. After 24 months of 0% financing on a small tractor, I traded up on another BX25D exactly 36 months ago and have now paid on Kubota loans without issue for 60 months. My current balance was $6900. The deal I had in place was for trading in the BX on a new RTV-X1140. After calculating the deal a balance of just under 10k was the amount due. EVEN though I had a perfect credit history with Kubota I wanted to put another $3000 cash into the deal to keep the new loan at the same amount as the current one that would be paid off, essentially giving Kubota no reason not to finance the balance. After all, their position is enhanced, a greater equity in the collateral (new RTV) being held then what they had in the current loan...

Kubota rejected the loan citing the foreclosure. The dealer requested them to reconsider because I was ALSO buying a Z411 zero turn mower in a separate deal, paying cash. Kubota agreed to finance the lousy 7k for 48 months, IF I put both units in a single deal with the same 10k cash down. They wanted 23k worth of collateral for writing a 7k loan, which would have forced me to spend $410 in unwanted insurance on the mower. REMEMBER, we're talking about a monthly payment roughly half of what my current loan is, a loan secured by collateral with a value 3k less then the RTV, a loan they would have to continue for another 2 years should I cancel any new purchase and again, a 5 year pristine credit history with Kubota.

Am I the only one that thinks this is a head-shaking moment? Am I wrong to question the value Kubota puts on customer loyalty? Or is this maybe a single loan agent missing the big picture? As originally posted, I rejected their small loan, paid the new RTV off in full and cancelled the mower on principle. I would have cancelled the entire deal, but I really like the dealer/customer relationship I have with Franz Tractor in Bradenton, Fl and my salesman Bill. I guess I like to remain loyal to those that have been good to me...

 

[hystyk24]

I dont see how the dealer could sell your trade in and deliver to another customer before the deal had been finalized. I might have given them the option to fix the financing or get my trade back.

I signed and allowed them to pickup my trade while we waited for kubota to ship the new RTV and mower. We have a history, this would have been the 3rd and 4th unit I purchased from this dealer. Many times these dealers have lists of what used equipment customers are looking for and often have a verbal deal with them before the trade is complete. This was the case here. I don't think the equipment changed hands yet, but it could have been an issue if I cancelled the entire deal...

 

[M5farms]

Its not their fault you didn't pay your mortgage , and if you default on one thing in their eye you could default on another obligation

 

[Kimberry]

hello hystyk24,

my financing was straight foward 1.1 % interest. what was so unreasonable, if you dont mind sharing with the rest of us? If we want to borrow money from others, we have to follow their rules. Otherwise, I wouldnt be able to own such fine equipment on my property. Take care.

Danny