Capital One Auto loan help...

[RoadtoRecovery12]

Hi, thanks in advance for any help.

A little background info...  My wife and I just received our BK7 discharge last Tuesday.  We reaffirmed one car, and surrendered the other.  To begin rebuilding our credit, we both applied (2 different individual apps) for capital one non-secured cc's.  To our amazement, we were both approved for $2000 cl's.  Are you kidding me?  I did not expect that all!  We both signed up for scorewatch here at myFico and my EQ is 648, TU 588 and my wifes EQ is 645, TU 588.

Now to my question.

We need a second car and called around to different banks and discussed what options we might have in securing a loan.  Not good news, as we expected.

So I was checking different sites online and decided to roll the dice on applying for a car loan at Capital one since they had just approved our cc's this week.  So here goes, my wife and I make apprx. $125,000 combined income and we applied for just $23,000 on our app.  We got the notice after 60 secs that more time would be needed and a decision would come in the next 24 hours.  It only took 2 minutes and I had the email.  We closed our eyes and clicked on the email and to our amazement, WE WERE APPROVED!

Now, it does say they need us to call and verify information before they can mail out the  blank check.  Sorry it took so long, but here is my question.  It gives a chart on APR's, but it is confusing to read if those are our APR's or example APR's.  The reason I say that is that the numbers given are not nice easy to follow APR's.  Here is a copy of my letter:

Congratulations! We've approved your Capital One Auto Finance® loan application.

To protect your privacy, we need to verify some information with you before we can mail out your Blank Check®. Please call us during business hours so that we may verify any remaining information to complete this approval.

Your Annual Percentage Rate (APR) will be based on the model year* of the vehicle you purchase. See the chart below.

Model Year Annual Percentage Rate (APR)

2012 or newer	7.21%
2011	8.07%
2010 - 2009	8.67%
2008 - 2005	9.67%

*Model year of the vehicle purchased and applicant's credit rating will be the basis for determining APR of vehicle purchases, regardless of mileage or previous title status. Model year refers to the manufacturer's annual production period and may not coincide with the calendar year. Automobile model years traditionally start in the third quarter of the preceding year.

I know the asterisk states the APR is based on the model year and applicants credit, but I was wondering if the chart given is for example purposes, or is this the chart approved for us?  Any info you can provide, especially if you have received this as well? 

Thanks again and we welcome all comments.

[RoadtoRecovery12]

Edit to add:

I was able to check my application status and this is the response:

Congratulations! We have approved your Capital One Auto Finance loan application.

To protect your privacy, we need to verify additional information before we can proceed with your loan. Please call us at 1-800-689-1789 during business hours so that we may verify any remaining information.

You can reach us: Weekdays: 9 am - 9 pm ET Saturdays: 10 am - 7 pm ET

We have already emailed you your conditionally approved terms.

Thank you for choosing Capital One Auto Finance. We look forward to hearing from you soon.

I highlighted in red, the comment that now makes me think the 7.21% in my first post is what I was approved for?  Has anyone ever got this low of a rate from cap 1 less than a week after BK7 discharge?  Do you think there is some flaw?  Sorry, I am tooooooo excited at the moment becuase I NEVER thought this was possible?

Thoughts???

[Anonymous]

I hope it is true for your sake.

About a year ago I went to a dealership to get a loan my TU score was 650, the finance guy said he searched every bank he had connections with and there was only one that would approve me and it was at 14%

I needed the car and didn't know any better and just said.. OK.. if that is the best you can do.

Now, I see stuff like this and read about other people on this forum getting approved for rates like 7-9% with the same or sometimes worse credit scores.

I don't get it.  Either I got completely taken by the dealer, or there are huge huge differences in what rate one bank might give compared to another.

It is very confusing... I am going to keep an eye on this thread to see if what your final results from this is.

[RoadtoRecovery12]

Yeah, I hope so too.  I spent the better part of yesterday calling only to hear from my local banks and credit unions tell us they would be happy to refi us after 1-2 years of rebuilding our credit.  I am the kind of person that this waiting is killing me.  I know that I will be on the phone with cap. 1 tomorrow morning at exactly 9 am to find out the deal. 

I still keep looking back at the original chart and see that 7.21% and wonder what is the catch?  For the better part of this morning, I kept thinking it was an example chart (hence the post).  But then I keep reading and re-reading the application website answer where it says they already emailed my approved terms.  Ugh...  I have already started to collect documents they may want (copy of drivers license, pay stubs, bk7 discharge notice).

Anyone else have any thoughts?  Could the 7.21% be a staring point?  Will they try to add % points?  Ugh....

Thanks for your opinions.

[Revelate]

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@Anonymous wrote:

I hope it is true for your sake.

About a year ago I went to a dealership to get a loan my TU score was 650, the finance guy said he searched every bank he had connections with and there was only one that would approve me and it was at 14%

I needed the car and didn't know any better and just said.. OK.. if that is the best you can do.

Now, I see stuff like this and read about other people on this forum getting approved for rates like 7-9% with the same or sometimes worse credit scores.

I don't get it.  Either I got completely taken by the dealer, or there are huge huge differences in what rate one bank might give compared to another.

It is very confusing... I am going to keep an eye on this thread to see if what your final results from this is.

---

That, massive differences even, for a whole lot of reasons too.

To the OP: most tier sheets are starting points.  It's gotten to the point that some lenders (Penfed CU) have actually started advertising: "this is a rate that you can ACTUALLY get unlike most lenders;" no kidding, I got that email a week or two ago from them, and then I saw someone's recent approval here with lower than prime scores from them.  Oh to have my credit reports and income in shape at the moment =/.

[RoadtoRecovery12]

Revelate:  yeah, I thought that as I ready more about tiers.

I went back to the cap. 1 site and they are advertising their new car rates as 2.9 for up to 60, and 3.9 up to 72.  If my new car rate (tier) starts at 7.21%, does that mean they already figured it out based on my credit pull.  If not, wouldn't they just list it as could be as low as 3.9?  I just can not figure out how the random number 7.21% came about?  I have really been down over the last hour thinking that if its too good to be true, well you know the rest???

[RoadtoRecovery12]

UPDATE!!!

IT IS LEGIT!

I just got off the phone with them and everything is a go. 

My blank check is for $27,600 (only asked for 23,000)

Rate of 7.21% for 72 months.

Check is good for 45 days and will be mailed out today.

I asked the gentlemen on the phone if there is anything else I needed to do (send any papers), and he said no that they already verified my wife's and my employment this morning and that was why I wasn't given an instant approval.

OH MY GOD!  Are you kidding me?  I know I need to take a deep breathe, but I would be lying if I said I wasn't going to spend this (responsibly) asap before I wake up?

THoughts???

[Revelate]

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@RoadtoRecovery12 wrote:

THoughts???

---

Take it and be very happy?

Sounds like a good deal for an incredibly recently charged BK; however, auto-loans are funny in the sense that they're the easiest loan type to acquire, and not every BK was created equally either for that matter and it wouldn't surprise me if underwriting at any lender can pick that off a credit report too.

In any event, congrats senor!

[RoadtoRecovery12]

Thanks...

I even paid the extra $15 to have the check fedex tomorrow.  I am wasting no time.  The loan is not final until it's final and I'm not taking any chances...

[GoodCredBen]

thats just freakin AWESOME!

Congrats! Let us know what vehicle you get!!!