Being punished for being Debit Free!

[tantricia44]

This June, I wanted to see if I could use financing help to get a loan to help me busy my new/used car. I was denied cuz I didn't have sufficient credit history! I paid off all mine & deceased husband's credit card debts years ago & refused to use a credit card ever again! I paid off the mortgage after husband's death so I'm pretty much debt-free so I don't have sufficient credit history or equity! Why am I being denied for being good with my finances & those up their neck/head up in debt get accepted for any kind of loan!!!!!!

[Sendmicheck]

It's shame that your're being punished for being debt free.

[amyDAST]

I wish I knew who was giving those in debt loans. I am passed due on medical bills & husband has okay credit but first time home owners loan would not accept us due to our debt situation and lack of having only a couple of good marks on credit score. They actually told us until we pay off all debt and open a cd or invest in a credit card we would not be able to get accepted for a loan on a home. It's so frustrating too. My husband has been at his job for 11 years, he makes enough money were I do not have to work. And we have investments in his company. This world makes no sense to me with how they pick and choose!

[dreamyxo]

If you have no debt why not just pay cash?  Credit is a tool you need to use to your advantage.

[tuyetmai]

That is shame but there were true that if you don't owe anything, that seems you don't have any credits and they won't let you borrow any kind of loan.

[potluck6]

maybe try a credit union instead of a bank. i also see annoying commercials need a car no credi t ok ,bad credit ok. maybe also get a credit card just to have a history and pay it off every month think that really raises your score.

[Bigpar31]

That sucks check back with them in 6 months. you would have had credit by then. or so they say.

[thoughtparticles]

If you have no debt why not just pay cash?  Credit is a tool you need to use to your advantage.

Maybe she doesn't have money enough to buy a car just lying around? 

 

My grandma ran into the same problem after my grandpa passed away. She established some credit in her name with a credit card through her bank and opened a few store cards. It helped her establish credit in her name and she just used the cards every few months and paid them off when the bill arrived. Problem solved... for her.

Hope you can get something sorted soon, OP!

[Getinonthis]

You rarely hear of a car dealership turning down anyone who's interested in purchasing a car, especially
in your position. Just shows how backward society has become.

[melissajh44]

That sucks, I'm sorry you're being punished for being financially responsible.

[crisstar]

First of all, you're not being punished for being debt-free.

Being debt-free has nothing to do with being credit worthy - as clearly you've found out.

You can't have it both ways - you can't be debt-free, (which is something that Dave Ramsey guy preaches) and then expect financial institutions to loan you money without a credit history.

When a financial institution loans you money, they are taking the risk that you may not pay not pay them back. To decrease their risk, they must have certain criteria in place and they must see your credit history.

Also, the second part of being debt-free is saving your money so you can pay for everything in cash. Only a small percent of people are able and willing to do this. For everyone else, being able to get credit is the way of life for the majority of people.

Your next move is deciding if you want to establish a credit history so that you're able to get credit when you need it or continue being debt-free and paying for everything in cash.

It's as simple as that.

By the way, not a huge fan of Dave Ramsey. A lot of what he teaches is pure crapola, although I agree that debt-free has its perks but unless you've got a whole lot of money sitting around doing nothing, you will need to establish credit sooner or later.

Credit is good as long as your responsible and don't overextend yourself.

[ejholt]

I am debt free also.  But I have no reason to charge anything or take out a new loan.  I bought a new car 3 years ago and got it paid off in half the time because I double up on my payment so I could save up so I can retire in the next few months.  Hope everyone has a good day and may God bless each of you and keep you safe.

[sherryinutah]

This June, I wanted to see if I could use financing help to get a loan to help me busy my new/used car. I was denied cuz I didn't have sufficient credit history! I paid off all mine & deceased husband's credit card debts years ago & refused to use a credit card ever again! I paid off the mortgage after husband's death so I'm pretty much debt-free so I don't have sufficient credit history or equity! Why am I being denied for being good with my finances & those up their neck/head up in debt get accepted for any kind of loan!!!!!!

It's not a punishment.  You have an opportunity to learn how credit works.  Establish some credit, pay well on it and benefit from understanding how it's done.

The only way lenders can see how you pay is by looking at past credit history.  If you have no credit and you haven't been paying any interest, they don't know that you're good with your finances. 

People who are making financially intelligent decisions have credit cards.  They usually have the best cards with 0% APR for a certain length of time and they usually receive cash back rewards for using their cards.

If you'll comply with the way things are done; chances are, you'll benefit and you won't have to feel like you're being punished. Live and learn.

 

[alina6]

I think a car dealer would be willing to give you a loan on a car. That would also help you build credit for the future in case you need it.

[jenniferhoder]

That is a huge shame. You should be rewarded for being debt free, not the opposite! Good luck to you!!