topic Re: Why Am I Not Getting Approved? in Auto Loans

Why Am I Not Getting Approved?

jp114070 — Mon, 08 Oct 2012 19:29:11 GMT

Hello Everyone!

I've been on here lurking the forums and posts for a few months, getting advice, answers , and tips to improve my score. Since Ive started I know ive gotten rid of basically all of my collections accounts, which was my biggest downfall. Now I only have a car loan on there with almost perfect loan history since I got the car in January 2011. And one closed credit card account with a balance of $308. My Equifax is showing a 627, TU is showing 577. and I dont know about EX but it was the lowest. I have had about 19 inquires this year (which was not smart, I know). I was approved for a a RoadLoans check thing but there rates are crazy and they want me to put money down. I have tried Alliant CU and Consumers and was denied. Im just wondering why this isnt working out in my favor. I have raised my EQ by at least 100 points and TU by about 80. No bankrupticies or public records or even collections on my TU or equifax. I am only 19 and make about $1400 a month but even still I should qualify for something other than a RoadLoans/Santander. any help would be appreciated. ALSO today I went to a dealership that Lending Tree recommended and they denied me but at the top of his dealer pull sheet my Equifax was a fricken 498 from Ford Credit I think. I tried Cap One and was denied so I'm going to call them tomorrow, after the holiday, and ask for a reconsideration.

thanks

Re: Why Am I Not Getting Approved?

StartingOver10 — Mon, 08 Oct 2012 22:18:51 GMT

In your post you said you have only been making payments since Jan 2011 and not all of them were timely (that's how I took the word: almost).

How many lates do you have in your current car loan?

Is there a reason why you want to get another vehicle right away - you just got this one less than two years ago. Also, one of the factors might be your income in relation to the amount of car you are trying to buy.

What kind of vehicle and price have you been shopping?

Re: Why Am I Not Getting Approved?

jp114070 — Mon, 08 Oct 2012 22:28:29 GMT

I had one thirty day late, which is only reporting on my TU. The reason why I am looking for a new car is because the one I have now has an issue at least once a month. Transmission had to be replaced and some other things. I do plan on trading it in but was also considering selling it on my own and getting more money out of it because there is a balance which isnt that high. the car shhouldnt be upside down. only $2180 left from $4300. I've been looking at cars around $10-11K for like a used Hyundai Sonata or G35. Today I didnt even look for a car just ran the credit before we even got serious and still was denied.

And im still confused as to why the dealer pull showed a score 130 points less ?

Re: Why Am I Not Getting Approved?

Walt_K — Mon, 08 Oct 2012 23:26:28 GMT

I'd say your score could be lower because it is auto-enhanced and you have an auto late, but you said they pulled EQ and the late is only on TU, so not sure. Are you sure it was EQ and not TU? It could also be that Ford was using a proprietary score model rather than a FICO score. Maybe someone more familiar with Ford can tell you, or if you have the denial letter does it say on it what score they were using, or if not explicity what score, does it state the score range?

You might want to post more complete details in the rebuilding forum and get some advice there. Your scores, especially the TU score, are still pretty low if you have no collections and only one 30 day late. How recent was the 30 day late?

Also, don't underestimate the value of nursing your car along or getting a more reliable beater for a while longer yet. If you think your car is worth more than $2180, if you can add even a little bit to that, you should be able to get a dependable car provided you don't have a particularly long commute. People tend to overestimate the amount they are really putting in to a car for maintenance.

Re: Why Am I Not Getting Approved?

jp114070 — Mon, 08 Oct 2012 23:35:19 GMT

Thanks for the responses ;) and the 30 day late was in August of this year so just a few months ago. And I am 100% positive it was my EQ. But even if it was auto enhanced should it be that low from one late payment. ? and I am working at it everyday, I am trying to be patient but winter is fast approaching Chicago and my heat sucks and my traction. Those things could be fixed but will cost. The sheet that the dealer had had some kind of bar chart on it. I shouldve asked for a copy -__- I know at the top it stated Reporting Agency = EQ then Score = 498. I am wondering if selling my car on my own first and paying off the loan will help my score but then I will have nothing but a closed CC account.

Re: Why Am I Not Getting Approved?

nissanaltimacrazyhorse — Mon, 08 Oct 2012 23:58:01 GMT

what about putting 500 down on a secured after 6-12 months app for something else

Re: Why Am I Not Getting Approved?

Walt_K — Tue, 09 Oct 2012 00:30:41 GMT

A recent 30 day late can have a large effect. The good thing is that its effect doesn't last that long compared to other major derogatories.

If you have no open credit cards, you probably would see a score increase from opening a card. While you take hits for an inquiry, a new account, and lowering of AAoA, a lot of people report seeing an increase when they have no revolving credit and they add a card. Sometimes there is an increase for the second card as well. Adding a secured card as suggested may be a good approach.

Re: Why Am I Not Getting Approved?

jp114070 — Tue, 09 Oct 2012 00:35:24 GMT

Yea I may have to. its just thats a timely process... Who do you recommend for a secured card?

Re: Why Am I Not Getting Approved?

Walt_K — Tue, 09 Oct 2012 21:31:43 GMT

No experience with them, but lots of people have posted about BofA's secured card. I think the overall consensus is that it's a decent option.

Re: Why Am I Not Getting Approved?

ds3 — Wed, 10 Oct 2012 05:30:06 GMT

Just got a secured card from US Bank a couple of months ago...pretty decent experience so far. I am just speculating, but $1400 a month in income and 19 yrs old probably doesn't instill a tremendous amount of confidence in a lender, regardless of scores.

Re: Why Am I Not Getting Approved?

jp114070 — Wed, 10 Oct 2012 07:04:59 GMT

Maybe I'll try them or BoA. And in regards to what you said, I feel like that does have something to do with my denials. Age shouldnt be a factor as long as I have good payment history dont worry about my age. *sigh* The downfalls of being young...

Re: Why Am I Not Getting Approved?

StartingOver10 — Wed, 10 Oct 2012 13:30:44 GMT

It might not be age per se, but it could be a lack of loan experience. You only had the one installment loan a short period of time (since Jan 2011) and in that time you had a recent late payment. That is what a lender looks at - besides, it looks like you just don't have the income to support a vehicle loan. You would be in better shape if you were able to demonstrate a larger income and had a very good explanation for the late pay. However, you can overcome almost anything by putting down a large down payment. How much were you planning to put down on the new vehicle?

Re: Why Am I Not Getting Approved?

ds3 — Wed, 10 Oct 2012 14:26:02 GMT

That's what I meant by being 19...you haven't had the time to establish a very long credit history. My daughter is 23, makes decent money, is buying a house, and still has trouble getting an auto loan. It will happen over time.

Re: Why Am I Not Getting Approved?

Jutz — Mon, 15 Oct 2012 15:01:38 GMT

From what I gather, this is your credit profile:

Closed CC w/ balance (I assume this means it was a charge off and still has a debt to be paid?
Recent auto loan w/ recent 30 day late
19 Inquiries in last year (I assume all Auto related?)

Are you putting any money down? How much is left on the current auto loan vs. how much the car is worth?

From any bank's perspective, this would be a risky loan. I agree with the poster recommending working on raising your credit first. Signing on an auto loan you can only kind of afford, with outrageous APR (Probably high teens, possibly low 20's) is a one way ticket back to the credit mess you just dug yourself out of.