07-14-2011 09:40 AM
I am wondering what do you think my chances are on an approval from Capital one. I applied back in Jan of 2011 right after I received my first card from them however I was declinded. Not sure if this was due to opening a recent account with them or my scores. I have just over 6 months of ontime credit payments. I currently have the following cards:
WNFB 250 Limit ($0 Balance) - Openend 06/2011
Credit One Bank $400 Limit ($150 Balance) - Openend 06/11/11
Capital One $500 Limit ($100 Balance) - Openend 01/2011
Orchard Bank $320 Limit ($0 Balance) - Openend 02/2011
I have several student loan accounts that were paid off in full no lates. I consolidated them into two about 4 years ago and the balances together are about $40,000 and have been paid on time every month for over 4years with no lates. I do have 1 unpaid Public Collection for $1157 that is due to fall off next April. I also have one Charged off Auto Account that is unpaid for $4995 that is over 5 years old. I also have a first premier charge off for $225 that is 3 years old however I am trying to payll in full however Premier says they do not own the account and won't accept payment. They sent it to Arrow however Arrow deleted the account when I asked for validation of the amount. My current income is $41,000 and I have been at my job for 5 years. I did get one of those dealership preapprovals about 5 months ago but did not take advantage of it and have not gotten anything since.
My questions is does Capital One ever approve a car loan with a prior unpaid repossession or public record. I was just looking to get some more reasonable transporation paying no more than $18,000k for the vehicle.
07-14-2011 10:53 AM
Even with the repo and a public account on record? I know Road Loans approved me about 6 months ago but it wasn't enough and the interest was something awful.
07-14-2011 11:03 AM
Yes, you can get approved for an auto loan, but as said before you will likely have a high intrest rate(13-22%) and may require a downpayment.
Do you currently have a vehichle or auto loan open?
I got a new vehichle in October of last year and was able to get approved through AmeriCredit but have an 18% intrest rate and had to make a $1000 down payment. My plans are to make all payments ontime and try to send more to pay some of the principle balance down. While at the same time working on improving my credit score and in 18-24months of ontime payments either re-finance or trade it in when I am not upside down. You may have to do something like this.
Or possibly consider getting a co-signer if possible; the lender will see you as a lower risk of default with a co-signer that has good credit.
07-14-2011 11:32 AM
I do not currently have any open vehicle or auto loans. A down payment is not a problem as I was preparing to put down between $1000-$1500 on the vehicle. I have actually done a pretty superb job improving my scores in the time frame I have done them in, or at least I think so. I started this process back in Sept 2010 and at that time had 21 baddies (collection accounts and 2 public records and 1 repo). I paid all but one of the 21 baddies and even managed to pay the 1 public record and get it vacated. It has been a great expense ($4000-$6000) however I am very happy the the results. When I began looking at this forum my credit score was in the less than 515 and all Agencies however I have been working very hard and this is where I sit today.
A cosigner would not be an option for me as I believe very strongly that I incurred this mess on my own and I will clean it up on my own. I am sure my parents would help but I am kinda embarrassed to have to ask nor would I.
I was trying to weight my chances a little bit before I pulled the trigger. Maybe in a few weeks I will have enough guts.
07-14-2011 07:25 PM
I think you'll be able to get a decent rate considering your scores. Okay so here's my story may or may not work for you. Currently Chevy is offering up to $5k in customer cash incentives on 2010 - 2011 Chevys. So I was able to use the $5k in incentives as my downpayment in addition to the other money I had. I was able to get approved through USAA for 8500 @ 14% (pretty high but it's a start) which covered the balance of the 2010 Impala I got. Maybe it'll work for you maybe not.
Try going to a CU that you have an established relationship with for a loan, I think your interest rate will be a lot better than mine.
07-15-2011 10:47 AM
It's great that you got those collections and charged off accounts paid off. I am firm believer in paying off legitimate debts.
That being said, remember that a paid collection/charge off is the same as an unpaid for FICO scoring purposes. The payment of these items will not increase your score by any means, but it will make you look better on manual review that you do pay off your debts. Getting the judgement removed is great though.
Good luck in your car hunt.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.