Anything to worry about?

[JRadV]

Hey All,

I'm going to the dealership tomorrow to finalize the purchase of a new veihlce. The vehich is $43000, and we're planning on putting down about $2,000 total.

My current FICO scores are: EQ 635, TU 637, and EX 638. My wifes scores are very similar, but her EQ score is lower, at 610.

We've been working on rebuilding our credit over the last few months, so there are two paid off collections (on mine), and one released State tax lien (on both, however it was expunged.  the reports haven't updated with its removal yet, unfortuntely). 

Total annual income is $265,000, with a total DTI of around 15%.

Are my chances good for a smooth process, or will there be some hurdles to get over?

Thanks in advance!

[Anonymous]

Have you secured financing the vehicle yet? Having fanancing options available before going to dealer is very helpful because banks/credit unions can often offer you very low APRs that the dealer will try to beat.

DCU, PenFed and Capital One are the forum's favorite. They tend to give out very low APRs for new car (think 60 months 1.5-2.5% APR).

[JRadV]

No, we haven't looked at other lenders yet. I'm always afraid that by shopping around, all of the hard pulls are going to hurt our chanes at the dealer, if those lenders decline. (paranoid, I know)

I keep hearing about "DCU" on here, but have never heard of them otherwise. Anyone have some personal experience with them?

[Luscher]

I refinanced with them. Highly recommend

[Kathy4NU]

I think you need to switch your thinking...

All the pulls the dealer would do will hurt you when they decline you and you need to go to one of the ones mentioned.

DCU is my choice... easy and low rates.  If DCU will approve you I don't think the dealer will find you competative financing.  If DCU doesn't approve you yo are probably looking at a very high rate.

I think if you are able to wait you should wait until the tax lein comes off.  Your scores will probaby jump a considerable amount as liens are major derogs.  Waiting could mean the difference between a good rate and a rebuilding rate.

[Anonymous]

should be ok !

[JRadV]

Welp, I put in an application with DCU yesterday, and I checked my loan status today, and it was marked as declined.

Reason: Delinquent past or present credit obligations with others. Insufficient number of satisfactory rated accounts. Poor credit history.

So, that doesn't give me a lot of confidence going in to the dealer today. I would love to wait longer, but unfortunately, our car was involved in an incident (caught fire, long story), and we need to get a second car since our rental is expiring after 5 weeks.

[jacksont1981]

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@JRadV wrote:

Welp, I put in an application with DCU yesterday, and I checked my loan status today, and it was marked as declined.

Reason: Delinquent past or present credit obligations with others. Insufficient number of satisfactory rated accounts. Poor credit history.

So, that doesn't give me a lot of confidence going in to the dealer today. I would love to wait longer, but unfortunately, our car was involved in an incident (caught fire, long story), and we need to get a second car since our rental is expiring after 5 weeks.

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The dealer will get you approved. No doubt about that. Its just a matter of what your APR is going to be and your credit will be shotgunned to different lenders resulting in multiple hard hits.

[JRadV]

Well, just got back from the dealer, and they got us approved through "Wells Fargo Dealer Services" for 72 months at 7.99%. Not terrible, but not great either. My "auto enhanced" scores that the dealer pulled were significantly lower then my Fico Auto Score 8 (30-40 pts lower then on myFico), or my standard Fico scores (70-80 points lower then myFico), so that was a real surprise. 

Our plan is to just hunker down and pay off some extra principle on this loan, and then refianace in 8-12 months at a lower rate. Thanks everyone!

[Dj4Money]

You can refi in 90 days, I highly recommend it, especially if you know your scores will go up.