Chances of being approved?

Anonymous · ‎12-31-2017

Im looking at purchasing a new truck in the next coming months. I am 21, and drive over 150 miles a day sometimes more. My current truck has almost 100K miles, and its time to trade up to something else. Also this will be my first vehicle financed completely in my name. I have about $20k in equity in the current truck, and the truck that im looking at is around 70k, I can put down 3-5k making the loan amount right around 45k or so. My scores are hovering the low 700, and high 600. No negs on any account and AAoA is just under 3 years. Last inquiry was 11/30/17. I opened 6 accounts in 2017, and my other 6 and older. I do have a boat financed with my CU that is over 75% paid off, and in good standing. I make about 65k a year that I can claim as income, and I currently pay the $900 a month payment on my truck that is in my moms name. The new payment will be less, so im not worried about being able to make the payment. Who should I look at for financing? I applied for the PenFed CC back in Feb, and was denied because my scores were too low, but I hear a lot about them loaning. Im also going to wait and see when Ford will be running 0 interest again. Does anyone know what scores are required to qualify for Ford 0% interest? Any other questions please ask me. TIA!

Anonymous · ‎12-31-2017

That is a huge loan for your first individual auto loan. You are still going to be financing at least $45k. What you have working for you is the equity if your truck does have at least $20K in it. Your cash is covering taxes. Are you currently on the loan now with mom? If you are you might be able to get funded on your own if it is a few years old. There are so many factors.

Anonymous · ‎01-03-2018

Thank you for the reply. No im not on the current loan as I was 17 when I got the truck, but I did buy myself a boat 3 years ago, and financed about 15k with a local CU, it reports as an auto loan, and ive never missed any payments or anything. I still have the boat but its for sale so I can trade up to something bigger now. Should i wait till it sells and then wait for the account to show closed before going for the truck? Just for laughs, I did the capital one auto navigator thing, and was approved for 40k (before i read that they only loan between $5k-$40k)

Kree · ‎01-03-2018

Perhaps counterintuitively, if you wait for the boat loan to be done, your scores will likely be lower. As having an open installment loan gives you points.

However for debt to income calculations, you would be better off without that payment on your account.

Tradeoffs to everything.

Anonymous · ‎01-05-2018

@Kree wrote:
Perhaps counterintuitively, if you wait for the boat loan to be done, your scores will likely be lower. As having an open installment loan gives you points.

However for debt to income calculations, you would be better off without that payment on your account.

Tradeoffs to everything.

@Kree wrote:
Perhaps counterintuitively, if you wait for the boat loan to be done, your scores will likely be lower. As having an open installment loan gives you points.

However for debt to income calculations, you would be better off without that payment on your account.

Tradeoffs to everything.
The open installment loan isnt a huge deal, as when I first joined here I was under the impression that an SSL was more than an installment loan, and jumped on one. So I still have my SSL to keep my installment loan there.

I went and did some lot creeping last night, and currently none of the 4 dealers in my area have anything that just screams buy me. So for now I think ill hold off, and maybe let some accounts mature in age. Maybe see if they start a 0% interest promotion in the next couple months, and jump then. Thanks!

Anonymous · ‎01-08-2018

@Kree wrote:
Perhaps counterintuitively, if you wait for the boat loan to be done, your scores will likely be lower. As having an open installment loan gives you points.

However for debt to income calculations, you would be better off without that payment on your account.

Tradeoffs to everything.

When I paid off my car loan I lost 30 points. When I paid off my mortgage I lost another 30 points. Every time my credit card reports a $0 balance I lose 10-20 points. FICO does not like paid off debt.

Anonymous · ‎01-17-2018

Just figured id just back in here and update the thread....the itch hit after I test drove what I wanted, and we all know the only way to scratch it is with the new truck.

Purchased a 2018 Ford F250. Talked with my local CU and got the loan completely in my name, no co-signer or anything. Also, since my CU is the best, no HP, so I keep my seedling in the garden LOL.

Out the door price for the truck was $77k and some change, after TTL, and discounts, and trade loan amount ended up being $59k and change. My truck payment actually went down from what I was paying, and I got all the new bells and whistles.

I know my credit scores will take a dive due to the new account and the amount, but it should also open some doors for me in the future. I have officially frozen all my reports, and will not be looking for anything until my truck note is at least 1 year old. So ill be creeping around until this time next year.

Anonymous · ‎01-17-2018

Congrats! That's a heckuva note to carry but if you feel comfortable with it, drive it proudly!

Is this work related? If so, you may want to sit down with a tax advisor and consider your next truck in the far future. If it's business related, working on incorporating a small business now and building business credit may mean future trucks are never in your name or credit.

If I was buying a truck for $75,000 I would be writing every penny off if it was work related!

jlitnns · ‎01-17-2018

I was driving 120-150 miles a day in a 15 year old car with 180k miles on it.

I bet it's a pretty truck...

Congratulations!

Anonymous · ‎01-17-2018

@Anonymous wrote:
Congrats! That's a heckuva note to carry but if you feel comfortable with it, drive it proudly!

Is this work related? If so, you may want to sit down with a tax advisor and consider your next truck in the far future. If it's business related, working on incorporating a small business now and building business credit may mean future trucks are never in your name or credit.

If I was buying a truck for $75,000 I would be writing every penny off if it was work related!

Thank you! Yes, my payments went down, and with my car allowance from the business, my portion of the payment is actually only ~$550. So not an unmanageable payment at all!

Yes, and no. Most of my mileage comes from commuting, but I will have 5-6 meetings a week which require me to drive 45+ miles each way. (Insurance agent in rural area)

As far as business credit, the business isnt mine yet, but has great credit. My parents opened up shop in 03, and have grown to 5 offices since. We have multiple company cars, cards, and loans. Soon my mom will be ready to retire, and itll get handed down the line. I practically grew up in this office. Our accountant takes care of all the taxes, and weve talked about which is the better write off, the mileage, or the depreciation. In the end mileage is the way to go, along with a large handful of other write-offs lol. Im trying to plan as far ahead as feasible, to make sure that I can retire somewhere on a beach at 50...lol