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Frequent Contributor
Posts: 317
Registered: ‎07-30-2008
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Auto Loan Approval

[ Edited ]

I am need of a new vehicle and would like to get one before my current vehicle breaks down.  I applied through my credit union and was denied as they are very conservative.  I have high uti on several credit cards and I have a mortgage.  I was approved for 30,000 through capital one blanck check but the interest rates are not good.  The interest rate ranges from 11.85 to 12.84 depending on the year of the vehicle and the amount of months needed for the finance.  My current scores are EX 618 EQ 622 TU 623.  This amount does not include my trade in or the fact that I was going to put down 3000.00 for my down payment.  Any suggestions??

2/01/09 TU 678 EQ 690 EX 655
06/12/2014 EQ 634/ TU 623/ EX 618
Valued Contributor
Posts: 1,288
Registered: ‎02-12-2014
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Re: Auto Loan Approval

Any baddies other than the util? How high is your util exactly? And what is the raw balance owed on the cards? Finally can you wait to buy a car till the util comes down?

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Frequent Contributor
Posts: 317
Registered: ‎07-30-2008
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Re: Auto Loan Approval

I was trying to wait as I was paying off different cards but now the radiator is leaking.  I want to be able to drive the car in for a trade in and not have to pull it.  I cosigned for a loan for someone and the finance co reported a 60 day late for me in April. That's the only baddie.  I have no collections but have high uti. 

 

Besty Buy 2618 balance credit limit is 2800

Eagle Federal credit union 1800 balance with 2000 limit

 

I have several more cards that are close to their limits and I have recently paid 3 of them off.

2/01/09 TU 678 EQ 690 EX 655
06/12/2014 EQ 634/ TU 623/ EX 618
Valued Contributor
Posts: 1,288
Registered: ‎02-12-2014
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Re: Auto Loan Approval

Get that 60 day late straightened out...did said person actually pay 60 days late? In the future, you need to make sure payments get there in time. Either have them pay you and you pay the finance co or you call the finance company every month a few days after the due date to make sure they got the payment and that it diddn't bounce.

 

Getting to your situation, given your score and history, I don't think COAF's 11% is really that off.

 

The good news for you through is two-fold. First COAF pulled auto enhanced. Due to the late, your auto enhanced is likely lower than your regular FICO (assuming the scores in the sig are from COAF's pull?). Can you pull your EQ FICO from this site by any chance?

 

Even if your EQ FICO is low, you can always refi. If you pay off those cards, I think your FICO will jump at least 30-40 points. That'll get you above 650 (hopefully above 675 regular FICO). If your regular FICO is 675+, you can get 2% from DCU.

 

At this point, I'd peek at your regular FICO if all you have are COAF's FICOs that they pulled. But buy the car now and work aggressively to pay down the cards. Once the balances come down, I'd look into refi'ing ASAP. Also if you buy used, you need to try to not overpay (ie definitely don't pay more than NADA Retail for the car). Though with a 3k dp, you probably won't be underwater even if you overpay a little bit.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Frequent Contributor
Posts: 317
Registered: ‎07-30-2008
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Re: Auto Loan Approval

All the scores at the bottom are my current fico scores that I ordered from the website.  The finance company were not very nice at all.  They didn't even call like they should have when the individual was late.  When I called to question the lates they were very rude and very abrupt.  I am having my mechanic come over to make sure that it actually is the radiator that is leaking.  This is what someone told me.  He said it may just be a hose.  If it is just a hose then hopefully I can hold on a little longer to the UTI down.  Which credit union is DCU?  The unfortunate thing is that I have been with the same credit union since I was 19 and I am 38 now.  I get checks direct deposited from both jobs right in there faces and even have a credit card with them that has never been paid late.  They will not take any risks and are that conservative.

2/01/09 TU 678 EQ 690 EX 655
06/12/2014 EQ 634/ TU 623/ EX 618
Moderator
Posts: 7,806
Registered: ‎01-15-2009
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Re: Auto Loan Approval


first48 wrote:

All the scores at the bottom are my current fico scores that I ordered from the website.  The finance company were not very nice at all.  They didn't even call like they should have when the individual was late.  When I called to question the lates they were very rude and very abrupt.  I am having my mechanic come over to make sure that it actually is the radiator that is leaking.  This is what someone told me.  He said it may just be a hose.  If it is just a hose then hopefully I can hold on a little longer to the UTI down.  Which credit union is DCU?  The unfortunate thing is that I have been with the same credit union since I was 19 and I am 38 now.  I get checks direct deposited from both jobs right in there faces and even have a credit card with them that has never been paid late.  They will not take any risks and are that conservative.


www.dcu.org

 

It's a great CU that has really great Auto Loan rates if one can qualify. It is work to get it, but for a 2% auto loan -- to me it was completely worth it.

Valued Contributor
Posts: 1,288
Registered: ‎02-12-2014
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Re: Auto Loan Approval

[ Edited ]

With a 622, don't apply to DCU now. They'll likely deny you. And even if they approve, your rate will be pushing 7%.

 

What I'd do is if you really need a car, buy now using Cap One. Don't pay too much though as I said before. As soon as those cards are paid down and update, your FICO should jump. Then ask DCU for a refi.

 

BTW when you asked for your Cap One loan, did they require a down payment/did you say  you were going to down pay the 3k required? You should call them and ask if they are requiring a down payment for the purchase or if they will lend 30k without the down payment.

 

Finally can you list the balance/credit limit for all your cards? I just noticed that you previously only listed two of the cards with high balance. It helps to see them all even if recently paid off to get a better idea of how much your FICO might improve. Just add a (recently paid off) next to the 0 balance/1k limit for a particular card that you've just paid off, but has not yet reported to your credit reports.

---

 

Also ask the individual who you cosigned for if they were late. And in the future, do they have some kind of online access where there are statements (perhaps the cosigner could share their login with you). After all if it's incorrect, it'll help the cosigner too if you get it corrected.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Frequent Contributor
Posts: 317
Registered: ‎07-30-2008
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Re: Auto Loan Approval

[ Edited ]

These are my following credit cards and balances:

Chase-860.43-1000.00 limit

Cap One--1372.36--1500.00 limit

Cap One--1308.30--1500.00 limit

Discover--1821.77--2000.00 limit

Dillards--993.41--1500.00 limit

Best Buy--2687.22--2800.00 limit

Home Depot--0--600.00 limit

Cabelas Visa--0--800.00 limit (closed)

Lowes--0--1300.00 limit (recently paid 2 weeks ago and balance was 490.00)

Eagle Federal credit Union--1652.99--2000.00 limit

Care Credit--0--5000.00 limit

Macy's--1025.77--revolving

Lane Bryant--541.39--1250.00 limit.

 

I also have student loans that are currently in deferment because I am in graduate school.  I work 2 jobs and my income is roughly 61000 per year.  I also have a mortgage which is 1110.00.

 

So that's my situation in a nutshell.  I was able to get my car repaired on yesterday as it was only the water hose.  I don't know what will break next as I am having a difficult time getting an inspection sticker because there is a service engine soon light on the dashboard that will take more money to fix than the car is worth.

 

Oh and the lates for the person I cosigned for are just what they are.  I have no idea where the person is and haven't spoken with them in over 2 months.

 

I never mentioned to Capital one anything about my down payment or trade in.  They stated that the blank checked will be mailed to me in 3 to 5 business days for 30,000.

 

2/01/09 TU 678 EQ 690 EX 655
06/12/2014 EQ 634/ TU 623/ EX 618
Valued Contributor
Posts: 1,288
Registered: ‎02-12-2014
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Re: Auto Loan Approval

[ Edited ]

If you need a car, you need a car. I wouldn't pour money into the current one for repairs. But since COAF doesn't require a down payment from you, that's good. I'd save the 3k you were planning to put down and use half to pay off the highest interest cards and the other half I'd keep in case you need it to make a refi easier. Also be sure to have the dealer compete with the COAF rate. Tell him you were approved at 8% by COAF and ask him to beat 8%. He should be able to. Just don't overpay (more than NADA Retail) for the car.

 

Also think about if you really need a 30k car? Maybe you could buy a 15k used one with not too high miles at this point? That'll save you a bundle on interest.

 

---

 

If you have to use the COAF loan, you need to strategically think about refi'ing ASAP. That means getting your utility down. Putting the 1.5k from the dp towards the highest interest cards will help. Because you owe generally similar amounts on all cards, I think attacking it highest interest first is the best idea.

 

But how long will it take for you to get the ~12k in balances down to ~4k? At 4k your util would be <20% and I think that'll really help your FICO vs. the current 60%. 1.5k from your dp leave you with roughly another 6.5k that you'd have to pay down. How long do you think it'll take you?

 

My big worry when you refi is that cosigned loan you have. Is it currently current and no longer late? I'm just worried that the person is going to continue to not pay and that it'll trash your score before you can refi. I know it's water under the bridge at this point, but in the future, please don't cosign for auto loans or any loan unless it's like your spouse who you've been married to for years.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Established Contributor
Posts: 714
Registered: ‎12-05-2013
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Re: Auto Loan Approval


Remember0 wrote:

If you need a car, you need a car. I wouldn't pour money into the current one for repairs. But since COAF doesn't require a down payment from you, that's good. I'd save the 3k you were planning to put down and use half to pay off the highest interest cards and the other half I'd keep in case you need it to make a refi easier. Also be sure to have the dealer compete with the COAF rate. Tell him you were approved at 8% by COAF and ask him to beat 8%. He should be able to. Just don't overpay (more than NADA Retail) for the car.

 


+1

In March of this year when I got my new Toyota, that is exactly what I did. I went there and told them that I had my own financing through Capital One and they ran their numbers and gave me a much better deal.

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