Automobile loan questions.

Anonymous · ‎04-21-2015

Hello all,

I would like to purchase a vehicle, my credit union pulls Transunion and in June I'll have 6 inquiries on my credit report over a 6 month period & 5 new acconts (that is if I don't apply for anything else). A loan officer told me that as long as my credit score is 650 or over I'll get a 1.99% interest rate. My question is should I wait a while to try for an automobile loan or would applying in June be fine? Does having the new accounts affect my chances of getting the loan, does having the recent inquiries affect my chances? I know if my car dies I'll have to go for it but just looking for some answers.

Thanks.

SamsungHDTV · ‎04-22-2015

@Anonymous wrote:
Hello all,
I would like to purchase a vehicle, my credit union pulls Transunion and in June I'll have 6 inquiries on my credit report over a 6 month period & 5 new acconts (that is if I don't apply for anything else). A loan officer told me that as long as my credit score is 650 or over I'll get a 1.99% interest rate. My question is should I wait a while to try for an automobile loan or would applying in June be fine? Does having the new accounts affect my chances of getting the loan, does having the recent inquiries affect my chances? I know if my car dies I'll have to go for it but just looking for some answers.
Thanks.

I think the time you should wait is dependent on how your car is running. The loan officer is only referring to his bank's policies and is basically saying they don't care about the number of new accounts and inqs as long as you have 650+. However, a loan officer is not the underwriter so its possible she/he is giving inaccurate information.

The new accounts and recent inqs have an effect on your credit score, and in turn affects your chances. The loan officer said the new accounts/inqs themselves don't affect the application, but it could at any other bank. This will be a YMMV, and you won't know until you try.

Not sure if this is the answer you're looking for but I hope it helps.

Anonymous · ‎04-26-2015

basically, your car is going to dictate whether it will be June app or earlier. In the meantime, you can only prepare. i suggest not to pull any FICO scores up until the day of your app with a bank or credit union. Ask them each bank/credit Union, which scores they use FICO 08, Auto Enhanced, FICO 04. Dealerships will go to atleast 3 different banks to get a rate offer; You may want them to limit it to one or two banks only. If CU/cap1/WellsFargoDealerServices offers you a blank check or approval then it becomes easy.

Second thing is know the exact car you want with an exact $$$ amount you will be financing and figure your payments including/excluding TTL.. This is so you know that no add-ons like tint/warranty/protection items or locks have been added to your final number.

If you are already there thats awesome.

Anonymous · ‎04-26-2015

Thanks so much for your input.

Anonymous · ‎04-26-2015

Thanks for sharing, I appreciate you taking the time to post a reply.