Is it legal to be denied credit because I am deployed to Iraq?
Brandon M asked:
I am trying to get a loan for a used car, my wife asked the dealership why we were denied seeing as we have average FICO score, and the dealership said “No bank is going to finance to a deployed soldier right now because of the economy the change all of standard”.
I am trying to get a loan for a used car, my wife asked the dealership why we were denied seeing as we have average FICO score, and the dealership said “No bank is going to finance to a deployed soldier right now because of the economy the change all of standard”.
no, that’s just not true.
go somewhere else.
Try USAA. They offer loans and cater to the military and their families.
not true try somewhere else.they are just thinking you are a bad investment incase you get killed over there your wife will not be able to pay off the loan i would try another credit union.
Anyone can deny someone credit for any reason they see fit. It is their money and they can choose to loan it to whomever they want or deny it to whomever they want. It’s not a matter of legality. They want to cover their butts. I know it seems very insensitive. I remember switching health insurance companies when I was married to my ex. I had taken some medication for depression and they denied me saying that I was too much of a risk because apparently I could go off the deep end and commit suicide! Even though nothing in my life or in my past would have led them to believe this at ALL. This was not true. The things they imply are very hard to take sometimes.
That being said, I’m sure that someone else will give you a loan. Don’t give up thinking that everyone will say that because that isn’t the case. While it is legal for them to do so, that won’t be true of everyone. Good luck and god bless you for your commitment to this country.
People have the flexiblilty to set their own credit standards. Nobody has to give anyone a loan. Just go someplace else. That doesn’t sound like a legitimate reason for credit denial, but they don’t have to give you a loan, so they’ve done nothing illegal.
If you are trying to get a Auto Car Loan and you know that your credit is not the best then you do not need to worry because getting a Car Loan even with bad credit is not that hard. Most lenders know that people nowadays have taken some hits on there credit and they have made it easier to obtain a Car Loan even if you credit is bad.
When getting your auto loan be aware that you may be required to pay a higher interest rate because the lender will look at you as a higher risk with bad credit. It is important to understand that even though you have a higher interest that as you make your monthly payments on time this will help raise your credit score and then you can always refinance it at a later time.
It is illegal to deny a loan based solely on military service, or for that matter, gender, race, religion, etc. It is much more difficult to get a loan now than it has been in years past.
Rather than applying at the dealership (and this goes for anyone), go to YOUR bank and apply for a auto loan there. With USAA, if you are approved, they send you a check valid for up to a set amount and you take it to the dealership and write it out. When the dealer takes you to the finance manager, you’ll let them know that you have already worked out your financing and that you’ll be giving them a check from your bank. Dealerships don’t really like this because it makes it harder for them to approve people with less than perfect credit (the dealer “sells” good loans to the banks and in turn the banks will approve higher risk accounts).
You can go to any of your local banks to apply for the loan, and in some cases, the banks and dealerships CUDL (pronounced cuddle), Credit Union Direct Lending. It’s best to go through a lender that you already have a relationship with because you’ll often get a better rate.
USAA will actually help you negotiate the price of your car as well. Once you have a car in mind, call them and they’ll walk you through it. Good luck!
That’s a bunch of BS. Why don’t you try MilitaryLoans.com? They provide loans of $500 through $10,000 in as little as 24 hours for active military personnel. Hope this helps and good luck.
You know, that might be what the bank told your wife…sort of…or how it got translated to you….but right now a lot of people who have average FICO scores are not being approved for loans, whether or not they are in Iraq currently. People are so paralyzed by this economy right now that even people with great scores are loosing loans because banks won’t take any chances with money right now.