So, I'm in the process of buying a F4i, and tried to get the financing taken care of yesterday (for those who saw my last post, I decided that I couldn't setttle for anything besides the honda). I applied for the Honda Card, and was shut down big time. Ugh.
They said that I have limited credit, but I was approved for my 23k car loan only six months ago. I don't understand why I would be denied a measly 8k line of credit.
Here's what I think may be the problems, and you guys tell me what you think:
1. My buddy tells me that banks will look at your entire financial situation, determine how much total credit you deserve, then issue your credit line based on that number, minus any credit you may already have outstanding. So, If the bank determines that I am good for 25k, I'd be screwed because I already blew 23k on my VW. Could this be the case? If I sell my car and pay off my auto loan, do you think I'd be more likely to be approved?
2. Are credit card-type loans harder to get approved for than regular auto loans? I think this may be the case-- anyone know for sure?
3. I make more than most people my age, but like any collgege kid, I have been late on a credit card or utility payment here and there, but nothing unreasonable. I know these late payments have a negative effect, but how damaging are they?
Y'all are going to be mighty happy when I finally get this thing, cause then I'll stop cluttering SBW with posts.
In the meantime, thanks for all the help so far-- Carvin, Pete, Chris_y2k_r1 especially.