Income NOT Credit?

Solonng · 11-29-2009, 01:29 AM

true, if you have money, you dont use credit as much..although my dad always tell me to use other peoples money first!!

JohnnyCanuck · 11-29-2009, 02:18 AM

This is a Canadian perspective, and credit rules are a bit tighter here but the principles are pretty much the same.

Income is important and, as posted above, it decides how much you can borrow. There is a ceiling on the percentage gross income that financial institutions will lend to (max debt ratio). Housing, insurance, loans, credit card debt, and your BMW application cannot exceed a maximum ceiling. For BMW Financial, I'd be surprised if that number was over 40%. That's probably what caused the rejection for $45K but approval for $40.5.

Credit score influences rates with traditional borrowing (eg. banks). Also, a very low score will cause rejection or require a co-sign.

Employment verification is often done through the credit check. If the occupation disclosed on the application mirrors what the credit reporting agencies already have ... specific verification isn't necessary. Remember, every time you apply/receive credit, your bureau file is updated with the info from that application. I've only had to verify once in the past ten years and that was shortly after switching employers. I didn't have to verify eight months later when I bought my BMW.

SmashD · 07-13-2010, 06:36 PM

Quote:

Originally Posted by PaulBailey@ltbmw

How do you have a 410 FICO with a $175k Salary??

LOL. I make about $90-100K/year with a FICO below 500. My situation was probably like the attorney's, I had to file for bankruptcy due to bad business decisions and "previous" debt (debt I incurred before I actually HAD money).

Its funny, before I had money I looked like a million bucks and drove a nice Benz. Now that I actually HAVE money I dress like crap and drive a pre-LCI 3-series (not that the Benz was nicer or anything, it was just pricier

).

I recently went to a dealership to try and "upgrade" to a newer model and was denied due to my credit score even though I have zero debt (due to bankruptcy), fully own my home, and have sufficient income.

In todays economy the only thing that is certain is the past, you cant rely on a person's income anymore.

11-29-2009, 01:29 AM	#23
Solonng Captain 111 Rep 829 Posts Drives: Monacco Blue 335i coupe Join Date: Apr 2008 Location: Florida iTrader: (0)	true, if you have money, you dont use credit as much..although my dad always tell me to use other peoples money first!!
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11-29-2009, 02:18 AM	#24
JohnnyCanuck Major 1258 Rep 1,352 Posts Drives: 2018 Audi RS3 Join Date: Oct 2009 Location: Vancouver iTrader: (1)	This is a Canadian perspective, and credit rules are a bit tighter here but the principles are pretty much the same. Income is important and, as posted above, it decides how much you can borrow. There is a ceiling on the percentage gross income that financial institutions will lend to (max debt ratio). Housing, insurance, loans, credit card debt, and your BMW application cannot exceed a maximum ceiling. For BMW Financial, I'd be surprised if that number was over 40%. That's probably what caused the rejection for $45K but approval for $40.5. Credit score influences rates with traditional borrowing (eg. banks). Also, a very low score will cause rejection or require a co-sign. Employment verification is often done through the credit check. If the occupation disclosed on the application mirrors what the credit reporting agencies already have ... specific verification isn't necessary. Remember, every time you apply/receive credit, your bureau file is updated with the info from that application. I've only had to verify once in the past ten years and that was shortly after switching employers. I didn't have to verify eight months later when I bought my BMW.
	Appreciate 0 Quote