Can't get approved for a loan.. suggestions?

Can't get approved for a loan.. suggestions?

So my tesla is ready for pick up, but I just got a call saying that I can't get approved and I would need a co signer. I am a year out of college working as a software developer making 80K living at my parents still so I have no expenses so a tesla is the perfect toy to buy, especially since I have so many ideas for apps to make!

Anyway my credit score is good, but the banks say my credit history isn't long enough. And I bought my current car for 20K cash a few years ago, which I now regret for my credit. Basically they said that the only way I could get this car is if I came up with enough cash to buy it, however that would not help my credit at all and that is one of the reasons I want to get this car. Would anyone have any suggestions what I can do? A co signer is out of the question since I make more than anyone else in my family...

Any advice would be nice! thanks!

Brian H | 21. februar 2013

reservations are not salable property as such; TM explicitly refuses to recognize such transfers. You can approximate the effect by taking on a co-owner on the paperwork, and working out the details between you in a side-contract. Could work.

jat | 21. februar 2013

@Carefree - presumably that is the point of making the deposit non-refundable, to cover the cost of finding a new home for it and sitting on the car until they can. I imagine if they went down the list of people with similar configurations they would eventually find one willing to take a slight change to get the car earlier. That is helped by the fact that there simply aren't that many options to choose.

cmarkortiz | 21. februar 2013

Flyrice.. thanks for advice on penfed just not sure they would give me time of day as my credit score is in the 500 range due to an "issue" i had being out of work for a while. I have 2 jobs now make great money and just hoping its the old "situation" of "cash" talks when it comes to trying to get financing.

GoTeslaChicago | 22. februar 2013


If your timeline is for December this year or later, there is a lot you can do to improve your credit score in the meantime. Work on it, you have nothing to lose, and a lot to gain.

cmarkortiz | 22. februar 2013

GoTeslaChicago.. thanks for kind words, any advice on how to improve my score enough

GoTeslaChicago | 22. februar 2013

Would have to know particulars, but here are some ideas.

Lenders don't want excuses, they want payments, not most of the time, but every single month. Don't rationalize that a few days late won't matter. It does, even once a year.

Do you have many credit lines open with balances?
#1 always pay on time, or early.
#2 prior to asking for a Tesla Loan get your balances as close to zero as possible.

Do you have any credit defaults that can be cleared up? If so do so. Many times a small blemish is just as damaging as a big one. Start with the small ones first.

In many cases, when applying for a car loan greater weight is given to how a previous car loan was handled than other kinds of loans. You could buy a used car, pay on time for 1 year to establish a good record, then pay off the loan in full before applying for a Tesla loan.

Older accounts are given more positive weight than newer ones. Don't apply for, or open new accounts unless it is absolutely necessary, as this will count against you. Conversely, don't close an older account, even if your not using it, because this will probably weaken your credit score.

There are many forums on the internet about this. Good luck

GoTeslaChicago | 22. februar 2013


Additional comment. If your credit is so bad that you have been cut off from credit, it is harder to re-establish a good payment history, and although time heals, it is a very slow process.

If that is your case, you will have to start over with a secured credit card, and a store card or two, such as Sears, Home Depot etc. The used car idea will work too. You will have to use credit to get credit. Therefore it is better to carry a balance and make timely payments every single month, even if the amount of credit you are given is small.

This is optional, but I recommend you subscribe to a credit reporting agency so you can monitor your progress every month or so. I'm sure you will get the positive reinforcement you need to continue if you can see small but steady improvements in your credit score.

cmarkortiz | 23. februar 2013

I have 2 credit cards not with a huge limit about 3500 in credit which are both almost payed off. I almost went into foreclosure on my house since i wasnt working for about 3 months so missed several mortgage payments which demolished my credit score. thats the issue now, all is great now but thats where the score dropped.

cmarkortiz | 26. februar 2013

really want to know what ever happened to alexeb112 and his loan problems. Anyone know if he ever got approved or what he did he doesnt comment on this thread anymore. For my story Im on my way paid off one 500 limit credit card to strat the credit reapair process, i know its small amount but want to do everything possible to get credit back in check so when im ready at end of year i dont have same problems.

GoTeslaChicago | 02. mars 2013


Please let us know if you got your car (and loan). I'm sure others can benefit by knowing how it turned out.

cmarkortiz | 03. mars 2013

yes let us know

cmarkortiz | 03. mars 2013

set up my penfed account today, even though im not looking to buy till end of year. I just did the basic savings account is that all you need or do you have to establish checking account as well ?

Brian H | 04. mars 2013

I think you have to donate $15 to one of their 2 military charities. PenFed stands for Pentagon Federal Credit Union.

mikhaila | 04. mars 2013

Well there is nothing wrong living with parents provided you have a good goal. For example, I'd be fine with my kid making even $200K and living with me provided he a) does not bother me and b) *saving* the money. I certainly wouldn't want him/her to take advantage of me and buy $100K car. But save money to, say, start their own business or use spare money and finance side startup work? Perhaps hiring someone to help you implement those apps you are thinking of? That would be fine with me.

bigdahud | 15. oktober 2013

So what's the latest Alex? Just curious. Thanks for sharing.

RZippel | 15. oktober 2013

Seems to be a cultural thing. I would never have come up with the idea to put myself one year salary in debt for a car in my first years at a job. And those recommendations with credit cards, etc. The next bubble the US will entertain the world with bursting is the credit cards debt that can't be paid (then transferred to all words tax payers to save the banking system), in addition to the whole country being officially unable to pay their bills from Thursday (sorry, could not resist).

Why don't you wait until you can actually afford a car like the MS and then you won't have any issue. Sorry for the clear words.

If you want some debt why not start with something essential like a flat or house? Rent you will have to pay some time anyway if you don't. I don't want to pay for your car.

RZippel | 15. oktober 2013

...worlds tax payers...

I want edit functionality ;-)

seanblist20 | 25. september 2014

Banks became more cautious in extending credit, making it more difficult for people to borrow. January was an enormous month for customer borrowing, according to Bloomberg's survey of a leading group of financial experts. Total hit a five-month high increase of $16.2 billion, a true shock too many in the financial forecasting field.

2050project | 25. september 2014

Credit unions are a good option in this case, i.e. Alliant and also USAlliance:

Sam_S | 25. september 2014

Cart before the horse......

When I was living with my parents, getting my own place was more important than a luxury vehicle.

Frankly, I think your friends will laugh at you behind your back that you have such an expensive luxury vehicle but you still live with your parents.

Red Sage ca us | 26. september 2014

Sure... They'll laugh behind his back... But they'll cry in their beer.


Pilot_51 @US-MI | 26. september 2014

I know this is an old thread and alexeb112 may not return, but there are (or perhaps were) a few striking similarities between his situation and mine. I'm also a software developer making $80k and living with my parents, with more app ideas than I can shake a stick at. On the other hand, I have no college education and pay my parents rent (plus, now, electricity for my car).

Despite having no credit history, I had no trouble getting approved at 3.97% with a $40k (47%) down payment through the local credit union I've been with for over ten years. It helps simplify things when they can see your account history and how dedicated you were to save up specifically for the car, and make any necessary account transfers on the spot. At the time I placed my order, I had my job for exactly 20 months. To avoid the situation experienced by the OP, I made sure to get pre-approved prior to confirming my order. I was told on several occasions during the process that it was the first loan they've given for a Tesla and the decision went all the way up to the VP.

sklancha | 27. september 2014


The biggest difference between your situation and @AlexEb112: you found out AHEAD OF TIME how much of a loan you could secure, so you knew how much you needed to save ahead of time. I don't think the rest of the information is relevant (where you live, how much you make, what is your credit history, etc.) Anytime you start planning for a big purchase that requires a loan- you need to know how much you are eligible to borrow.

lilbean | 30. januar 2016

"Perfect toy to buy"? With all due respect, you are not ready for this purchase. Tesla is doing everybody a favor by not approving this purchase.

Solarwind | 30. januar 2016

Something seems a little fishy. A model S is $2500 deposit , a X is $5000 , first off he needs to downgrade to the S.
I am for anyone to have a Tesla if there is any way because I think it supports the company and the environment. Both very important for the future of mankind.

mark_g | 30. januar 2016

I agree with bottesini. The cosmos is telling you something, so listen. YOU CANNOT AFFORD THIS CAR.

Run don't walk away, try to get your deposit back and if you can't chalk it up to experience, do not saddle your

parents with your problems and LEARN something from this experience. You cannot have everything you

want. Understand this and your life will be much much easier and debt free.

hammer @OR-US | 30. januar 2016

Libean, Solarwind, mferrazano Why are you responding to a nearly three year old thread?

omega | 30. januar 2016

You will make 150k easily in a few years.

jnsparke | 31. januar 2016

Living at home with little respect for money is what got you in this place. Need to learn responsibility and PRIORITIES. It is amazing i'm sure you will also be the first to complain about the coast of installing the power to charge it Like half the others. If you own a $100 K vehicle you don't quibble how to save $100. You need to learn you get it when you have paid your dues.
First move out and start your life on your own and quit over extending right from the start.(Sorry If I sound like a parent) And I hope your parents don't have to pay for you thinking I want it all NOW.
Good luck!!!