Hello, my name is Thomas and I would like to get a $30,000 car loan.
Of course. My name is...
Sounds good, can I get your information please?
Aaaugh!
I am sorry about this sir... but I am unable to approve a loan for you as your credit score is too low, you don't have any savings, and you have a history of late payments. and maxed credit cards. I would suggest you try to fix that.
Thomas and Maya are both college graduates, about to attempt to get $30,000 dollar car loans.
Hi! My name is Maya and I would like to take out a $30,000 car loan.
Of course! I just need your info...
Thomas... hasn't been the best. He tends to pay bills late and spend too much, he has 4 credit cards, and he hits the limit on all of them each month. This is what happens.
Sounds good! Thank you!
Maya, it looks like you are financially on a great path! I am going to authorize a 5 year, 30,000 dollar loan with 5% interest.
A few minutes later...
Now it's Maya's turn. She only has one credit card which she never maxes. She has held it since her senior year of high school, and she has never missed a payment on any of her bills or student loans, and she has a savings account. Here she goes...
Five minutes later...
Maya got her loan because her credit score was better and held longer, she had always paid on time, and she had a savings account, none of which Thomas had.
