Auto Loans

[mf94]

Age: 43

Score: 670 (steady for at least a year)

Payment history: 3 years ontime payments (credit cards only form of credit)

Time at residence: 

Income: $52K/yr

Debt: all credit cards have balances less than 50% of the limit (HSBC, Capital One [2 cards], Amex Green [no limit], retail store cards, etc) except one: Chase (bal is 85% of limit)

Bad: past auto history includes (2) 90-days and (1) 120-day; federal tax lien resulting from dispute with former employer over 1099 vs W2 (I won, but still have to pay my portion of the taxes)

Capital One keeps sending pre-approvals.  Was approved online today by Cap1, but within 10 minutes received an email changing that to a denial.  Wondering where to turn for reasonable financing rates (is 670 that bad??) and feeling overqualified for Santander Roadloans and many other "bad credit" auto loans (although I admit I know nothing about Santander or credit scores).  Does anyone have any advice?

[cdtotten]

Biggest issue is past auto history. Most dealerships use auto-enhanced scores, so with those past issues your auto-enhanced score will be significantly lower than your tradtional FICO. I would expect you will get financing, but the rate will be high and they might want a co-signer. If not, expect to put a large downpayment down... which may lower your rate.

[pizzadude]

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@mf94 wrote:

Age: 43

Score: 670 (steady for at least a year)

Payment history: 3 years ontime payments (credit cards only form of credit)

Time at residence: 

Income: $52K/yr

Debt: all credit cards have balances less than 50% of the limit (HSBC, Capital One [2 cards], Amex Green [no limit], retail store cards, etc) except one: Chase (bal is 85% of limit)

Bad: past auto history includes (2) 90-days and (1) 120-day; federal tax lien resulting from dispute with former employer over 1099 vs W2 (I won, but still have to pay my portion of the taxes)

Capital One keeps sending pre-approvals.  Was approved online today by Cap1, but within 10 minutes received an email changing that to a denial.  Wondering where to turn for reasonable financing rates (is 670 that bad??) and feeling overqualified for Santander Roadloans and many other "bad credit" auto loans (although I admit I know nothing about Santander or credit scores).  Does anyone have any advice?

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I agree that putting down a large downpayment should help to secure a better interest rate ~ also have you attempted to GW the late payments on your previous auto loan ?  That should give a bump to your FICO scores...

[Anonymous]

I wouldn't dismiss that Tax Lien so easy, the Bank isn't going to. Couple that Lien with a 90 and 120 day late notice on a car loan and there you go...Santander will often give people a chance that have no other decent options left.....their fees to the Dealer to buy the deal often keeps the deal from happening.  Santander often gives a better call back on a new car over a used car. I say you get done, but a nice down payment awaits you. Having a good Finance Mgr. work your deal with the banks could help you alot as your situation could fall either way. All Finance Managers are not created equal. Good luck to you.