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Apparently having good credit isn’t enough, unless you’ve already pledged loyalty to the debt system. (lemmy.world)

submitted 2 days ago* (last edited 2 days ago) by Camzing@lemmy.world to c/personalfinance@lemmy.ml

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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?

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[–] EightBitBlood@lemmy.world 4 points 23 hours ago

Dude. Even with good credit they will fuck with you. I've been with Wells Fargo since '84.

Started a business in 2014. Asked them for a business loan in 2023.

My credit score was over 700. I have multiple credit lines I pay on time and have been for years.

WF said I was pre-approved for a business loan of 100k.

After 6 weeks, they denied my application.

Simply because of one missed payment (by 15 days) on a credit card in 2020. (I incorrectly thought this card had a no payment forgiveness grace period due to the pandemic.)

Its a broken system that only works for those that already have capital. They will find a reason to deny you no matter what.