Chances with DCU

[TheDjinn]

Hello FICO world! My sibling is looking into purchasing his first new car within the next couple months. After doing some research on my own, I see that DCU would be a good place to start as they offer low rates, decent service, and use Equifax. So here are his credentials:

1) He has one credit card which I added him as an AU 3 months ago. The limit is 10K and utilization is about 5-10% with a 7 yr history of perfect payment. I just added him as an AU to one of my Amex card with a 0 balance, 9.5K limit, and 3 years old which it should show on his report next month with perfect payments

2) One collection account that is 6.5 years old which is listed on his Experian, possibly TU, and clear from his Equifax report. 

3) He has one inquiry from a cell phone provider on his EQ report. 

4) He has a 766 score through WF's free credit reports, but I know this is not indicative of his true FICO or Auto EQ scores. But it at least gives a general ball park figure. 

5) Income is 30K

6) 10K down payment

7) Interested in Honda Accord, approx retail value $28K. 

What I would like to know is his chances of getting the 1.9% rate, what they will require him to submit, and how easy the process would be. Thanks for any input!!

[boomhower]

766 should be more than enough for the lowest rate.  I had a 762 when I apped for the CC and they offered 2.49 which is equal to 1.99.  You have to have direct deposit to get the extra .5% down to 1.99.  DCU doesn't use auto enhanced scoring, just plain FICO.

[TheDjinn]

Thanks for the info. I actually called and spoke to one of the loan officers and they say the magic number is 675 on Equifax report to get that low rate. As a first time buyer they will only approve 50% of the total annual income with a 20% down payment. Once approved, they will require a "Purchase fo Sale" contract from the dealership and DCU will then mail out the check. 

[Revelate]

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@boomhower wrote:

766 should be more than enough for the lowest rate.  I had a 762 when I apped for the CC and they offered 2.49 which is equal to 1.99.  You have to have direct deposit to get the extra .5% down to 1.99.  DCU doesn't use auto enhanced scoring, just plain FICO.

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I must've missed that memo in my abscense from this particular board as of late (mea culpa), where/how was that demonstrated?

[Revelate]

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@TheDjinn wrote:

Thanks for the info. I actually called and spoke to one of the loan officers and they say the magic number is 675 on Equifax report to get that low rate. As a first time buyer they will only approve 50% of the total annual income with a 20% down payment. Once approved, they will require a "Purchase fo Sale" contract from the dealership and DCU will then mail out the check. 

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With that purchase price, I assume you're purchasing from a dealer?  Dealer financing would probably do fairly well for him, and if not, have him refi after the  sixth payment with DCU.

Do get him started on his own credit cards as well after the car is squared away.

[boomhower]

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@Revelate wrote:

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@boomhower wrote:

766 should be more than enough for the lowest rate.  I had a 762 when I apped for the CC and they offered 2.49 which is equal to 1.99.  You have to have direct deposit to get the extra .5% down to 1.99.  DCU doesn't use auto enhanced scoring, just plain FICO.

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I must've missed that memo in my abscense from this particular board as of late (mea culpa), where/how was that demonstrated?

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I'll assume your talking about the score.  I've yet to see a single instance of them using an auto FICO with many many users reporting the score they used to being the exact same as their standard FICO.  I suppose I don't have DCU documentation stating they don't use an auto enhanced FICO, just many user reports from various boards.

[sccredit]

When I applied at DCU for an auto loan the score they used was my exact FICO score they provided to me.