Just applied for Capital One and was given a message: We’ve received your Capital One Auto Finance loan application. We are currently reviewing your information and we will email or call you within three business days to provide you with a status update. We apologize for the delay and are committed to providing you with a hassle-free loan experience. Thank you for considering us for your auto loan needs! then 3 minutes later: Thank you for applying for a Capital One Auto Finance® loan. After reviewing your information, we are unable to approve your application at this time. We will mail you a letter within 7-10 business days that explains the reason for our decision. Please note: This is the most recent information available to our associates. For your privacy, phone representatives do not have access to decline reasons. Also applied for USAA auto loan, Was denied. So besides putting two recent inquiries on my report for nothing what am I doing wrong Annual Income:$120,000-$150,000 No Mortgage, only student loans recently consolidated through Willam D Ford. No credit Card Debt (although $453 was posted, I pay my balance monthly carry nothing over to the next month)
Starting Score: 656
Thank you for the reply. My William D Ford payments have been made monthly, None of my loans are currently defaulted, all show zero balance and my FICO report is reading Debt in the green category , and payment history red , length of history green, amount of new credit (Willam D Ford) red. But if that's still debt to income ratio, I think I understand ($500,000 is still $500,000) But if I can't trust my FICO score then what do I trust? When I run FICO simulator it says to pay down credit card debt, which I do monthly. Right now it's $46 on 1 card becaused I use it to fill up my gas tank Friday. It says my score jumps to 706 by paying off my CC debt Still not sure when I should try to request auto loan again. I think I may try the USAA CD secured loan for mix if credit, maybe the $5000 limit like you suggest. My Capital One Limits have been going up, so that's a positive. So if I am correct. New credit (cards and William D Ford=bad) Payments, time and keeping my cards under <9% is a must? So is it better to put down %50 on a new car or buy it outright? Ultimate goal is to stop paying rent and get a mortgage. I was trying to use a car purchase as positive credit and thought I could pay a car loan off in two years
@Student_Loans_Kill wrote:
Thank you for the reply. My William D Ford payments have been made monthly, None of my loans are currently defaulted, all show zero balance and my FICO report is reading Debt in the green category , and payment history red , length of history green, amount of new credit (Willam D Ford) red. But if that's still debt to income ratio, I think I understand ($500,000 is still $500,000) But if I can't trust my FICO score then what do I trust? When I run FICO simulator it says to pay down credit card debt, which I do monthly. Right now it's $46 on 1 card becaused I use it to fill up my gas tank Friday. It says my score jumps to 706 by paying off my CC debt Still not sure when I should try to request auto loan again. I think I may try the USAA CD secured loan for mix if credit, maybe the $5000 limit like you suggest. My Capital One Limits have been going up, so that's a positive. So if I am correct. New credit (cards and William D Ford=bad) Payments, time and keeping my cards under <9% is a must? So is it better to put down %50 on a new car or buy it outright? Ultimate goal is to stop paying rent and get a mortgage. I was trying to use a car purchase as positive credit and thought I could pay a car loan off in two years
Definitely use the car loan as a positive tradeline to build your credit score. 50% down = guarunteed approval, heck, even 30% down pretty much is.
Secured CD loan: while I'm using this myself through USAA, from a scoring perspective there's no real need to do it for more than the minimum 2500. Installment debt isn't factored the same way, and you're looking for 1) payment history, and 2) mix of credit like you suggest.
An auto loan is pretty much the easiest possible loan to get since it's secured against the vehicle. If you can put down a solid downpayment (I put down 12k on a 31k OTD car), regardless of what your credit score / history says, you can absolutely get through manual review... just explain the situation, that yes, the debt listed is substantial, but you're on a payment plan, and that'll be it. You'll probably get a call just for the underwriters amusement factor which is the perfect opportunity to present your case favorably (much like I did with my IRS problem).
You'll be fine in the long run, but the credit score simulators are all over the map. Just keep paying everything on time, keeping your revolving (credit card) utilization low as you've already read here, and your score will go up with time... then once the derogatories are either gone or aged off, you'll be in fantastic shape. MIninmum FHA mortgage score is only a 640 anyway, if that's a real FICO in your signature, you'lll be fine.
Oh further note: make sure you get a simple interest loan on the car.
Here's an interesting tidbit I found since I'm throwing my available free cash at my auto loan (at similar income to yours), don't request that extra payments go directly to principal, see if they can go against your next payment (quite often they do by default, check the loan agreement) to continually push the next due date further into the future. Just do that continually over the course of the loan till your payment date is basically the last one (somewhere 3ish years out from what you wrote) and let it idle for positive tradeline history with the interest accruing on some laughably small principal.
Stupid FICO tricks 
For those who may have been in my position before and think there is no way out of this mess. I think I had a 500 FICO score last year. I had 28 bad marks from student loans, no credit and was getting stressed about life. I hired a lawyer after I finished my residency training and started to slowly attack this thing head on.... I got the USAA secured credit card American Express this summer. I was declined for the Wellsfargo one so if you are in my position, apply USAA. I charged it up payed it off monthly sometimes bi monthly. I took the Capital one offeres when they came. First one was the platinum card for $300 unsecured. Same strategy charge and pay. They offered me a second card ( no credit increase yet on the first Capital one card. I think it requires 5 months of payments) a cash rewards card for $1000. I took this offer and have not used card yet.
It seems like I had all this worry for no reason. It seems I double applied and they rejected my second application for obvious reasons... I got this today:
Dear FORMER BAD CREDIT PERSON
Your no obligation Blank Check® loan package should arrive in 3-5 business days, unless you selected FedEx Overnight delivery during the application process. If you selected FedEx delivery, you will receive a separate email with your tracking information. What’s next? | ||||
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@Revelate wrote:Oh further note: make sure you get a simple interest loan on the car.
Here's an interesting tidbit I found since I'm throwing my available free cash at my auto loan (at similar income to yours), don't request that extra payments go directly to principal, see if they can go against your next payment (quite often they do by default, check the loan agreement) to continually push the next due date further into the future. Just do that continually over the course of the loan till your payment date is basically the last one (somewhere 3ish years out from what you wrote) and let it idle for positive tradeline history with the interest accruing on some laughably small principal.
Stupid FICO tricks
Are you sure about this? When you advance the payment, aren't you paying just as if you were making the next payment, and therefore paying the same amount of interest. If you don't pay down the principal, then the interest is still calculated against that amount. I thought that was why some lenders set it up to where your payment would advance by default, so they would get more in interest. I could be wrong.