Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My husband is looking to buy a car soon. He moved from Canada to US last year and so has no credit history in US. I have a very good credit history here in US.
We applied for an auto loan at one of the leading banks, with both of us as co-borrowers. We thought this would help my husband build a credit history here. But the loan application got rejected - the reason being my husband's lack of history .
He has already gotten a secured credit card.
Do you have any thoughts as to what other options we have for the auto loan? We would like the primary borrower to be my husband so that he builds his credit history as he pays off the loan?
He doesn't need to be the primary borrower to build his credit rating, just needs to be on the the loan. Since you are married, your credit rating will be pretty much "joint" if you are both listed. Get him listed on your credit card (s) as a co-owner of the card(s).
Did you apply through the car dealership or directly through the bank? If you go through the dealership, they have a little more latitude with lending-even with the same banks you might contact directly. Your rate might not be as good doing that but it isn't going to make a huge difference.
Did you offer to put up a down payment, or are you trying to finance 100% of the purchase price? They're probably going to want something down in this case, especially since you're dealing with a "leading lender." Credit unions and locally-owned banks are usually more accomodating in cases like this. And don't let the "glitz" fool you, the little guys usually offer competitive interest rates and similar services.
Tips for immigrants building a U.S. credit history here is a small tip you might want to try - if not for the car, then maybe for any future purchase. It might help you to establish your credit history faster:
• Take a hard copy. (...) Have a hard copy of your credit history, translated into English when necessary, to offer to lenders. With that information in hand, lenders may be willing to attempt to verify information and help position you on the credit ladder.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.