Someone with no credit rating – Help!

[trblvb]

My Son has just started work as parcel delivery contractor (Aus. Post) and has an ABN.

He wants to purchase a new vehicle (e.g. Hiace Van) for work however has no credit rating and tried to get a car loan through ANZ and Westpac – they both knocked him back.

Any ideas on where too from here?

 

[PLANT]

His father comes to mind?

 

[trblvb]

Ha Ha good try 'Son'...

 

[OzEire]

Used car yard (does he need / want a 'new' vehicle) and their finance.

 

[trblvb]

Prefer new or near new and yes car dealer finance. Banks no help in his case.

 

[TomVexille]

Are you willing to co-sign for the loan?

 

[Renato1]

About six or seven weeks ago, a father rang up Jon Faine on ABC 774 complaining that his 18 year old son had just gotten a loan from CBA of $18,000. And that his son had no job, no assets and no prospect of paying it back.

So, maybe try CBA.
Cheers,
Renato

 

[Sprucegoose]

Higher risk higher interest. Did they provide an unofficial reason he was knocked back.

Credit ratings are valuable and require management.

 

[amaroo]

Ah, the memories!

80's, first job, no money, no guarantor ... banks knocked me back, ended up buying a car from Holden via their [-]finance[/-] leaches with 22% interest rate. One of the best "life lesson" I received.

 

[OzEire]

Ah, the memories!

80's, first job, no money, no guarantor ... banks knocked me back, ended up buying a car from Holden via their [-]finance[/-] leaches with 22% interest rate. One of the best "life lesson" I received.

And started your credit report.... Presuming you paid it off, you would have a good rating right off the bat.

I did the same with a old bomb of a car, paid it off, got a credit card on that basis paid it off each month and then on to a mortgage (in Perth before the mining boom, oh yeah).... And so it goes.

 

[Isochronous]

A limited guarantee might be worth considering - sign up to guarantee a fraction of the loan - that would help, and mean you're not on the hook for the whole amount.

Mate of mine got his parents to guarantee 1pc of his housing loan. Brought the interest rate down and saved him the need to pay mortgage insurance through the bank

 

[amaroo]

And started your credit report.... Presuming you paid it off, you would have a good rating right off the bat.

I did the same with a old bomb of a car, paid it off, got a credit card on that basis paid it off each month and then on to a mortgage (in Perth before the mining boom, oh yeah).... And so it goes.

Indeed. Within two years of being knocked back by the banks for a $13K car (with no radio) - I had a mortgage on a Mosman (Sydney) property.

 

[Denali]

My suggestion is dealer finance but contact banks to know the market rates so you don't get screwed.

 

[N860CR]

Dealer finance can sometimes be ok % rate wise... Just watch for the fees (especially for early repayment - this can be $1k sometimes)

 

[burmans]

And started your credit report.... Presuming you paid it off, you would have a good rating right off the bat.

I did the same with a old bomb of a car, paid it off, got a credit card on that basis paid it off each month and then on to a mortgage (in Perth before the mining boom, oh yeah).... And so it goes.

Yep, youve got to start somewhere. The secret is, small loan, pay it off quickly.