First.. apologies if this topic has been beaten to death, but I've gone through the FAQs and searched and while I have found some topics that are similar to my own situation, none really touch on what my core problem here is.

I'm 21 and have never financed anything before. I'm trying to get an auto loan for $5,000 (to combine with $4k cash as my down payment).

I went to a credit union last week and was approved at a rate of 3.9% with the condition that I must have a co-signer. I did not anticipate this being a problem as my boyfriend had offered to do it if they wanted one. He called the next morning to have himself added onto the loan, then I got a call saying he wouldn't qualify based on his credit. He has student loans and a car loan but no other debt, so I assume they denied him because of the combination of loans and limited history.

I don't have anyone else who can co-sign; father is deceased, older brother is deceased, other older brother (24) is pretty irresponsible and I know has terrible credit and debt, mother is mentally ill and not in my life. No extended family. TMI, perhaps, but I want to drive the point home that there is -literally- no one who can co-sign aside from my boyfriend.

This leaves me in a bind. My question (and core problem) is, can a first time car buyer get approved for a loan without a co-signer? Or rather, is anyone aware of a reputable program (or bank, credit union, whatever) that can help?

I have owned two cars already - one I bought with cash for $2k when I was 16 that turned out to be a lemon, and another I bought with cash for $3k when I was 17 (the car I have now).

I order a free credit report from one of the three bureaus every four months (January - Transunion, May - Equifax, September - Experian) and there is nothing questionable, so I do monitor my credit.

The credit union that required a co-signer said so because I have limited credit. I know I have good credit, it's just the issue of not having a whole lot of it. This frustrates me endlessly as I have no negative credit, I've supported myself since I was 15, moved out at 16, was emancipated at 17, been working full time since 17, have NEVER paid a bill or rent late, etc. I know the credit union doesn't care about any of this and that I will be judged based on quantity rather than quality to protect themselves, but this doesn't lessen my frustration... I know I'm not a typical 21 year old and I know I'm not going to screw this up.

So what does someone do in my situation? I've done everything I know how to build my credit so far... I have two savings accounts - one long term, one short term. I have a credit card that I've had since I was 19 (that like I said earlier, I have never paid late and I've never carried a balance), I have a checking account, I have worked at the same employer since I was 18 and make pretty good money. I don't know what else I can do other than wait and keep doing what I'm doing... but how long does it take to build credit on what I already have to where I'm not a risk for lenders?

Maybe it's possible I could get a loan without a co-signer if I try other lenders, but I'm afraid of shopping around since it will ding my credit.. I'd like some advice before I move forward. I'm sort of scared a dealer will try to screw me over, and I want to avoid insanely high rates. Maybe I'm trying to have my cake and eat it too, but I don't know. I don't feel sure enough of myself or knowledge to move forward.. googling hasn't really helped because as far as I know most things are hokey or scams. I was referred to lendingtree.com by a friend but I read some concerning online reviews. Help?

Why don't you take the 4K you have in cash and find a nice used car?

turtlebug said:Why don't you take the 4K you have in cash and find a nice used car?

I'm not in an utterly dire situation where if I don't find a car I'll lose my job, for example - right now I'm using my boyfriend's car, which has been inconvenient and will not work as a long term solution, but it's ok for the time being.
The two previous cars I owned I WAS in a dire situation when I bought them (and strapped for cash), so I had to make a lot of compromises in terms of quality, miles, etc.. I don't want anything fancy, flashy, brand new, etc. but I do want something with relatively low miles (under, say 80k?), has a strong history of reliability, and will maintain resale value decently. So far I've not found something under $3,500 (since the other $500 will nearly be eaten by taxes, title and license fees).

I'm trying to "invest" in a car right now, basically - one I will own and be driving for a long time.

Antimatter85 said:What is your credit score, and do you have a long credit history (student loans, credit cards, etc)? I don't see why they would require a co-signer for you unless they saw some red flags during the credit check.

Also, did you try any other credit unions or local banks?

I don't know my number credit score, I just monitor my credit from the free credit reports. I explained my credit history in my original post - I'm 21, so clearly I can't have a long credit history just based on age, but I have a credit card I've never carried a balance on or paid late, two savings accounts, a checking account, etc... no student loans though. I've been told by other places (my bank, my insurance company, etc.) that I have excellent credit - it's just that I don't have a lot of it.

I have not tried other credit unions or local banks. Like I said in my original post, I'm hesitant to start shopping around since it is my understanding that my credit gets dinged every time I apply for a loan.

That's good news! Thank you. I'll see what happens.

Meganap said:That's good news! Thank you. I'll see what happens.

Did you try PenFed?

kloakndaggers said:Also go sign up at creditkarma.com . While it isn't exactly your credit scores...itz pretty damn close and should give you a good estimate of what it is but considering you are only 21 I doubt you have too much of a credit history.

In my experience creditkarma is pretty far divorced from reality. I'd pay for a real credit score if I were in the OP's place.

kloakndaggers said:guess different for each situation. Mine have been pretty much on the dot against TU not so much with exp and equi

I've seen 80 point differences in mine.

I'm sure your local stealership can set you up with any loan that you need.

Meganap said:in terms of quality, miles, etc.. I don't want anything fancy, flashy, brand new, etc. but I do want something with relatively low miles (under, say 80k?), has a strong history of reliability, and will maintain resale value decently. So far I've not found something under $3,500 (since the other $500 will nearly be eaten by taxes, title and license fees).
Megan, you are doing many of the right things. You really should avoid, if you can, paying interest to fund purchases of things you consume - including cars.

You haven't said, but I really hope you are paying your credit cards in full each month.

Now, as to the car, if you can put it off until you have more money - do so. Otherwise your budget is your cash on hand. (And I do hope you also have a 6-8 month emergency fund)

I know this advice is not what you wanted, and it will be hard now, but you will be glad later

ceobeaver said:
PS. I agree with the other poster that you should just try to find something for under 4K. Hondas can go 200K miles if they are well taken care of, so don't be afraid of a honda civic or accord with 95K miles on it. Especially if its manual.

I'm a huge stickshift fanboy, but be careful if you buy a manual car with close to 100k miles on it. If the previous driver has been abusing the clutch you could soon be hit with an expensive bill for a new one. Ugh.