A Minor Setback, Not Truckin Related.

Topic 25435 | Page 1

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millionmiler24's Comment
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I found out a few days back that the bank that approved the financing on my Escape went back on the deal because they didn't want to accept my income with the way it was calculated. In other words when they add my taxable earnings and my PerDiem together to get my yearly income. Since the Per Diem falls into the Reimbursement category, they didn't want to factor it in. They only looked at my taxable earnings. I already signed the papers on this car also, so what is goin to happen is when I get home in a couple of days, I have to take the Escape back to the dealership and get back in my Accord. This truly bums me out but maybe it could be a sign that something bigger could be meant for me. Brett if you wish to please delete the post about my Escape. Thanks I appreciate it. This is the post in question:

Well It Was That Time. It Had To Be Done. Topic 25068

I really wish I could have made it work. Do finance companies normally go back on deals like this after they are signed? I wouldn't be so bummed about it if they had just denied me instead of lettin me sign the papers and then goin back on it. It hasn't hit my credit though so I guess thats a plus. What should I do here?

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Tractor Man's Comment
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Stealerships are notoriously shady in my opinion. Did you use the Dealer Financing? If so, check with a local Credit Union. They may be more helpful.

millionmiler24's Comment
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Stealerships are notoriously shady in my opinion. Did you use the Dealer Financing? If so, check with a local Credit Union. They may be more helpful.

Every local credit union has turned me down. The bank in question, I wont mention their name on here, was the only one that would even work with me. The dealership tries every local bank and credit union to get people financing. They work with upwards of 35 banks and credit unions I believe and every one has turned me down. Oh well I am gonna keep tryin. I need a vehicle with 4WD for the brutal Iowa Winters. FWD just wont cut it for me in the snow.

Brett Aquila's Comment
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It sounds to me like the problem is your credit score, not your income. You don't get turned down for a car by dozens of places if you have a solid credit score and a stable job, even if your taxable income is a little lower than it could be. Banks fully understand what per diem is and they know it's part of your net income after taxes. I can't imagine they're just going to disregard it because it isn't taxable. It's still money in your pocket. That wouldn't make any sense.

I would work on building up your credit score. Good credit opens a lot of doors.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

millionmiler24's Comment
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I can't imagine they're just going to disregard it because it isn't taxable. It's still money in your pocket. That wouldn't make any sense.

I thought the exact same thing. I just wish they would have fully accepted it as is.

Good credit opens a lot of doors.

OMG so true, so true. My credit is Average at best now. Its not bad, but not the best either. I guess I could just use this setback, pick myself back up, brush myself off and get my score up to where it should be. Thats the only thing I think I can do here. Anyway, did you delete the original post I linked above?

NeeklODN's Comment
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That's super shady, and if they went back on a signed deal, you probably didn't want to be involved with that bank in the first place! If you went back on your end, they would probably put more black marks than a week old banana on your credit report. I'd say this is a win for you. From the sounds of it, your interest rate was probably super high too. I'm with Brett. Get a secured credit card or something and work on your credit for a year, then try again. I brought mine from "poor" to "excellent" in about 2 years. Another trick......go to the three different credit bureau websites and dispute each individual negative account on your reports. If the bank/collections agency doesn't respond within (I think 30 days) with proof of the debt, then it's automatically removed from your report. This is the first thing those "credit repair specialists" do when you hire them. It works too, some places are just too busy. 🤷

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Doug C.'s Comment
member avatar

It is painful to have to endure a disappointment like this.

SAP:

Substance Abuse Professional

The Substance Abuse Professional (SAP) is a person who evaluates employees who have violated a DOT drug and alcohol program regulation and makes recommendations concerning education, treatment, follow-up testing, and aftercare.

millionmiler24's Comment
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That's super shady, and if they went back on a signed deal, you probably didn't want to be involved with that bank in the first place! If you went back on your end, they would probably put more black marks than a week old banana on your credit report. I'd say this is a win for you. From the sounds of it, your interest rate was probably super high too. I'm with Brett. Get a secured credit card or something and work on your credit for a year, then try again. I brought mine from "poor" to "excellent" in about 2 years. Another trick......go to the three different credit bureau websites and dispute each individual negative account on your reports. If the bank/collections agency doesn't respond within (I think 30 days) with proof of the debt, then it's automatically removed from your report. This is the first thing those "credit repair specialists" do when you hire them. It works too, some places are just too busy. 🤷

Interest Rate was 3 pts lower than on the Accord. About the 3 bureau thing, I never knew that.

It is painful to have to endure a disappointment like this.

I totally agree, but as I told Brett earlier, I just got to pick myself up and brush myself off and move on. I need to work on my credit to get it rebuilt up. I think If I can get my score above 700 they should be chompin at the bits to get this done and maybe in a newer model. Who knows?

SAP:

Substance Abuse Professional

The Substance Abuse Professional (SAP) is a person who evaluates employees who have violated a DOT drug and alcohol program regulation and makes recommendations concerning education, treatment, follow-up testing, and aftercare.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Rick S.'s Comment
member avatar

Try Capital One - they financed me with a 600 score a fews years ago (out of a Honda Dealership). 2.5% Financing. OTOH - I only borrowed like $15K on a $45K Honda Pilot. And this was only 4 years out of a bankruptcy (that goes away this summer when my current 720 should jump 30 or so points).

This is one of the drawbacks of non-taxable income that can create a setback when seeking credit - along with other factors like: current debt, score, payment histories/delinquencies.

You need to get a FREE PULL of your credit reports from the 3 vendors (equifax, transunion, experion) and see what's going on. You can also just get the Credit Karma app (FREE), and see what's going on.

Rick

millionmiler24's Comment
member avatar
Try Capital One - they financed me with a 600 score a fews years ago (out of a Honda Dealership). 2.5% Financing. OTOH - I only borrowed like $15K on a $45K Honda Pilot. And this was only 4 years out of a bankruptcy (that goes away this summer when my current 720 should jump 30 or so points).

They were one of the ones that turned me down.

This is one of the drawbacks of non-taxable income that can create a setback when seeking credit - along with other factors like: current debt, score, payment histories/delinquencies.

This is why when I get back home I am gettin with payroll and gettin off of PerDiem.

You need to get a FREE PULL of your credit reports from the 3 vendors (equifax, transunion, experion) and see what's going on. You can also just get the Credit Karma app (FREE), and see what's going on.

Will do when I get home.

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