Chances of Approval for Auto Loan

[paula629]

I need to purchase a car ASAP!! My credit scores are listed below....before my Household Bank started reporting today....I have never had a repo. or a car loan on my report. But I do have few collections from 2008..I have 2 positive trade lines....I am looking for a loan of about $25k...any suggestions on banks or what companies pull just transition and/or experian Thanks!!

[paula629]

Orbit to mention my salary is $115,000.00 a year

[Revelate]

Dig through the stickied Auto Loan Approvals for banks and what bureaus they pulled... though in some cases it may depend where you live.  From my own auto adventure, I know the Chase auto division only pulled TU.  Most likely stay away from the pre-dominantly east-coast serving institutions (USAA / Penfed / et al) as they will likely pull EQ.  West and mid-west lenders are more likely to pull Experian and Transunion respectively.  

I think you're going to find that a lot depends on your downpayment that you can place on the car, and also what APR you're willing to accept.  Don't be shocked at ~20% APR, but typically if you put enough of a deposit down, it's almost guarunteed that someone will finance you.  Trying to get the car for 0 down is probably out of the question; however, for a secured loan (which an auto loan is) you can usually get someone to finance it, especially as you don't have an income problem in terms of affording the car payment.

[StartingOver10]

I agree with the above regarding your down payment. The more money you put down, the less risk for the lender.

Do you have a credit union account? If you do, make application there first. They only pull one time - as opposed to multiple pulls from a car dealership. Also, if you get an approval with a CU, you then have one more bargaining chip with the dealership to negotiate the interest rate. 

Remember, if you decide to finance thru the dealership rather than a CU, don't accept their first (or second or third et al) rate offered. They will always start off much, much higher in rate than what you actually qualify for IME. If you have a CU approval, then you know about where you should be given your score. You may have to walk out on the F&I guy, because that is the language they understand....even at those large, well established dealerships. You can do that in such a way that they come running (or calling) you later with a better deal.

Last thing to keep in mind. If you don't have a large down payment, you might want to wait to save up additional funds. Otherwise, you will be in a loan that is hugely upside down. Those F&I guys can smell desperation....and will take advantage of you. So have a plan B...even if you don't need one now.

[Revelate]

All good advice from StartingOver, though in the inquiry thing: all the related inquiries for an auto-loan will roll up into one from a scoring perspective if done in a two week period.

So while I think the CU is a good idea for a lot of reasons, from an inquiry one it's not that big of a deal: simply be ready to pull the trigger when you attempt to get a loan,as at least from a FICO perspective, you have a two week clock which starts running right there.

[paula629]

 Thanks for all of the advice....i just got turned down for a cc with my CU so, i am not sure how they would feel about giving me an auto loan.....NFCU....i was thinking that if i pay the balance i have on a CO of Cap 1 on my credit report, my score should move some points to get me a better rate...at least on TU..i have a Household CC that just started reporting on Experian today....i am sure the rest will follow, shortly....

[Anonymous]

Canyou shed some more light on why your credit scores are so low and you have fairly good income? What is holding back on your scores?

[paula629]

My credit sucks!!! i am working on repairing....i have an unpaid Cap 1 CO, unpaid JFCU Visa CO both from 09.(EQ only
)...there are 2 collection accounts from 08, and 1 Verizon account....i currently have a Household MC and a Bloomingdales CC ......That's everything in a nutshell...got any advice???

[corysti]

Not to get to personal in your business or your life but do you have a lot of debt? Basically how much money are you in debt...

[Anonymous]

If possible try cleaning that first and than go gor auto loan few months (if you can wait) or else get a used car for time being and clear that baddies first. You can write PFD letters and give it a shot if the creditor will remove if from your CR.