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Taxtom
Taxtom, Accountant
Category: Finance
Satisfied Customers: 2364
Experience:  25 Years in preparing Personal and Business Tax Retuns
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Personal Loan

Customer Question

I had a credit union discriminate against me, denied my personal loan, then, approved my personal loan, but for income verification they wanted me to supply several years of tax returns! Huh? For a $6,000 personal loan with excellent credit ratings? The IRS wants $50.00 per year for a true and attested copy of the actual return that was filed! They ran my credit twice! Now I'm being challenged for having too many inquires, five (5), during the past six (6) months, which I don't actually think is excessive. Prosper.comLLC will now give me a personal loan for $6,500 at 31.99% interest with only a three (3) year term, with payments of $250.00 per month, which, again, I thought was WAY too excessive, with a 740 FICO Score? I offered this first credit union, who jerked me around, unlawfully (I filed formal complaints with the FTC and the NCUA in Washington D.C.) the title to an antique Ford REAL police car, which is valued at $20K to $25K (I have it insured for $30K), and as one of their several excuses, e.g. "We don't think that you can handle a personal loan," some idiot there told me my antique car is worth only $5K (the motor is worth 10K alone). So, courtesy of me, hopefully they're going to have some "Feds" crawling up their collective asses, auditing them, and finding out why the acted so bizarrely and unusually towards me and my righteous personal loan application.   I told their President that this is going to be the most expensive personal loan that they ever, unlawfully (pursuant to the Federal Fair Credit Opportunites Act) denied!   All of that drama aside, what can I do now, or should I do now to optimize my chances of getting a $6,500 personal loan at a decent interest rate, e.g. 9.9 % or less with a 48 to 60 month term, especially if the Bank, Credit Union, etc., were to accept the title to this very rare,antique REAL (not a fake!) Ford police car in very good condition, otherwise, as collateral.  I need this money for rebuilding the 460 4V H.O. Police Interceptor motor with almost 200,000 miles on it!   It's a very nice, popular car that represents just a small piece of law enforcement history, especially here in CT.  Thank you,  Bill Parks
Submitted: 4 years ago.
Category: Finance
Expert:  CGCPA replied 4 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

 

Although there are a number of companies which will finance your antique auto using the one you presently have as collateral for the loan there are a few points you need to understand about financing before you proceed.

 

Banks and other lenders do not make what they in their infinite wisdom and experience consider risky loans without adjusting the interest rate to reflect that perceived risk. This risk is determined on several factors:

 

Credit history/score - This measures how well you have dealt with credit previously and how well you have honored your obligations.

 

Income - This is used to determine the likelihood that your income, as evidenced by the past, is to continue.Thus, if you worked at one company for the past three years and are still employed there, the presumption is made that you are a good employee and likely to remain so. It is also used to measure your ability to pay the loan (plus interest) using historical averages.

 

Collateral - This is used to measure the security you have to offer a lender so that in a worst case situation the lender can take the collateral and auction it off and come out whole.Since the market for antique cars varies both up and down banks are cautious about lending for this.

 

Nevertheless, there are, as I stated earlier, lenders who specialize in antique auto loans. They have different criteria which they use to value a specific auto. Just remember that there is no "heart" involved here, just a cold look at what is involved. Here are a few for you to look into. Remember, they may also want your tax returns so you should print multiple copies of any you have. You are required to keep at least 3 years of these in your records. If you get a copy from the IRS do not release it, only release a copy of it.

 

http://www.jjbest.com/

http://www.hagerty.com/finance/finance_index.aspx

http://www.motorcarsfinancial.com/

http://www.fossilcars.com/links/classiccarfinancing.html

 

Please choose carefully in selecting a lender to apply to. The more applications you submit, the more credit inquiries there will be. The increase in inquiries itself will make lenders perceive you as a potential bad risk and decline your loan.

Customer: replied 4 years ago.
You did nothing to help me remedy or resolve my bizarre, unusual financial situation. If there is no financial answer, remedy, or resolution that you can think of, this is what you should have said to me in your "answer!" Telling me a whole lot of generic information of whiic I already knew is NOT a compensible "answer!" I know all about A.M. Best, et al. They finance the purchase of antique/classic vehicles. Theu do NOT finance the restoration or repair of such vehicles. As such, your "answer" is not accepted. BP
Expert:  Taxtom replied 4 years ago.
Hello, The banks will actually accept a transcript that is free of charge from the IRS http://www.irs.gov/individuals/article/0%2C%2Cid=110571%2C00.html instead of a full copy with attachments. This should solve your proof of income problem that the banks requires. Before the financial collapse banks made what was considered a paperless loan where they took the info from your application and your credit report and approve the loan. They now require documentation that requires to prove the information on your application so that ask for tax returns, pay stubs and bank statements. Thanks Tom