topic Re: Denied?????? in Auto Loans

Denied??????

biffhamilton — Wed, 10 Oct 2012 20:39:52 GMT

I'm in need of a car due to new job offer that is going to pay me about 20K more annually. The company I'm leaving supplies me with a company car. (I've been there about a 1 1/2)

So.....I check my credit score online to find out an average of 630. I only have a bit over 6K in credit card debt. A few 30 day lates back in 2007. Other than that pretty clean.

My minimum monthly payments are just under $200. My other expenses are rent $950......and I make aprox 40K per year.

My credit union shot me down for a 10K auto loan.

I don't get it

Re: Denied??????

StartingOver10 — Wed, 10 Oct 2012 20:58:11 GMT

What are your actual FICO scores? An average won't help. Also, what were the specific reasons your CU turned you down? Was it because you are between jobs? That is how it looks from your post. Have you started the new job yet? One more thing, how is your utilization on your accounts? You mention $6000 owed, but $6000 owed out of a credit line of say $7500 is different than $6000 owed out of a credit line of $50,000. It's the percentage of debt that is a big factor in the scoring formula.

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 21:28:01 GMT

No....I'm still employed. In order to take the new job....I'm going to need a car.

I don't have a FICO score.....I used another online credit report that shows the following

TransUnion - 648

Equifax - 628

Experian - 617

I have two credit cards

Capital one -$ 1500

Householdbank - $ 5000

Both are pretty much maxed out. But, I thought it was the debt to income that mattered? I make about 40K.....soon to be 60k with new job

Total monthly debt is $ 1200 per month which is under 40% debt/income

Re: Denied??????

Walt_K — Wed, 10 Oct 2012 21:45:20 GMT

biffhamilton wrote:
No....I'm still employed. In order to take the new job....I'm going to need a car.

I don't have a FICO score.....I used another online credit report that shows the following

TransUnion - 648

Equifax - 628

Experian - 617

I have two credit cards

Capital one -$ 1500
Householdbank - $ 5000

Both are pretty much maxed out. But, I thought it was the debt to income that mattered? I make about 40K.....soon to be 60k with new job

Total monthly debt is $ 1200 per month which is under 40% debt/income

Those scores are not FICO scores. The lender is going to look at FICO scores. Do you have anything from your CU listing your reasons for denial? Can you ask your CU if they will give you your scores?

Debt to income matters to the lender, so it is considered in your overall approval, but it is not a part of your FICO score. Utlization percentage on revolving accounts is a large part of your FICO score (30% IIRC). So having only two credit cards that are both near maxed out is really hurting your score. If you were able to pay those cards down, you'd see a considerable score jump.

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 21:53:05 GMT

The guy on the phone said my score was a C rate. (fair)

The thing that sucks the most is I can even get by with a $ 5,000 dollar car and payoff everything with in a years time based on the extra 20g's I'll be making per year.

I just need a car right away....and don't have any free cash lying around.

I also don't want to go all over town applying for loans messing up the decent credit that I have.

I thought Credit Unions gave me my best chance......and if that's the case I'm screwed

Thanks for the help BTW

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 22:00:31 GMT

I just registered on FICO....

670 is my score

Re: Denied??????

JKeeler1121 — Wed, 10 Oct 2012 22:36:05 GMT

I think you will be approved by a lender not credit union they are much harder approval. You can go apply to like americredit, fleet financial, roadloans. Good Luck

biffhamilton wrote:
I just registered on FICO....

670 is my score

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 22:38:27 GMT

Would you just go to a local dealer? (I haven't even picked out a car yet)

Would you apply online with one of the listings you provided

Thanks again

Re: Denied??????

JKeeler1121 — Wed, 10 Oct 2012 22:40:55 GMT

I would apply on fleet financial what is your limit on amount??

biffhamilton wrote:
Would you just go to a local dealer? (I haven't even picked out a car yet)

or

Would you apply online with one of the listings you provided

Thanks again

my brother in law brought a 2008 Mercedes ML350 with Americredit 33,250.00 2500 down fico 548 and income was 98,000.00

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 22:47:00 GMT

That's a nice ride. I won't rule out a Benz once I have all my debt gone.

My plan is to purchase an 5-8K car (Honda civic like) I'm guessing $ 300 per month range for 2 years...and pay it off early....as well as my two cards

By that time I should be able to get something nice

Re: Denied??????

JKeeler1121 — Wed, 10 Oct 2012 22:52:51 GMT

Guy the honest truth you could proably lease your self a new civic with a 670 FICO honest truth

biffhamilton wrote:
That's a nice ride. I won't rule out a Benz once I have all my debt gone.

My plan is to purchase an 5-8K car (Honda civic like) I'm guessing $ 300 per month range for 2 years...and pay it off early....as well as my two cards

By that time I should be able to get something nice

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 22:59:41 GMT

Too many miles.......

I'm in sales

I wonder if I should apply for a auto loan with Capital One? Does it hurt or help that I already have a credit card with them?

Re: Denied??????

JKeeler1121 — Wed, 10 Oct 2012 23:01:51 GMT

I would try the capital one because they will give you an instant decsion and their terms aren't that bad. do you have any credit with capital one now?? If so and good history i would apply now and get the blank check in a few days

biffhamilton wrote:
Too many miles.......

I'm in sales

I wonder if I should apply for a auto loan with Capital One? Does it hurt or help that I already have a credit card with them?

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 23:03:40 GMT

I have a maxed out Capital One card right now.....$ 1,500

Re: Denied??????

JKeeler1121 — Wed, 10 Oct 2012 23:05:14 GMT

good history that dosent matter just apply !!! keep me posted

biffhamilton wrote:
I have a maxed out Capital One card right now.....$ 1,500

Re: Denied??????

Walt_K — Wed, 10 Oct 2012 23:13:39 GMT

biffhamilton wrote:
The guy on the phone said my score was a C rate. (fair)

The thing that sucks the most is I can even get by with a $ 5,000 dollar car and payoff everything with in a years time based on the extra 20g's I'll be making per year.

I just need a car right away....and don't have any free cash lying around.

I also don't want to go all over town applying for loans messing up the decent credit that I have.

I thought Credit Unions gave me my best chance......and if that's the case I'm screwed

Thanks for the help BTW

All auto inquiries will be scored as one inquiry if made within a certain timeframe. I always forget the exact days. I think it is 45 days for the newer scoring models. In any event, since you just applied at the CU, additional inquiries right now are not going to further damage your score. They will appear on your report, but if they are coded correctly, FICO will only score one inquiry.

Re: Denied??????

biffhamilton — Wed, 10 Oct 2012 23:17:53 GMT

I thought I read that somewhere....THANKS

I may go porsche shopping then....just for the hell of it.:smileyvery-happy:

Re: Denied??????

biffhamilton — Thu, 11 Oct 2012 00:05:45 GMT

Ya.....for me!

Capital One approved me 7% 10k

Thanks for eveyone's help

Re: Denied??????

Walt_K — Thu, 11 Oct 2012 00:14:37 GMT

Congrats. Hope the new job goes well.

Re: Denied??????

Epcot — Thu, 11 Oct 2012 01:22:53 GMT

Congrats on the approval. Always remember you can re-finance down the road and lower your rate even more!