Auto Loans

[a9m7c4]

In my previous thread in the Rebuilding Your Credit Section ("Not too far from the 700s...now how can I get there?"), I briefly discussed my recent car loan application with my CU.  My husband initially applied and was denied.  We then decided to proceed with me applying as a co-signer.  About a day later, I had second thoughts, and my husband left a message with our CU contact to nix our app.  Later that day, my husband received his offical loan refusal letter - and so did I!  Even though I never actually applied.  Go figure (and thanks to them for running MY credit when *I* never applied...).  Then, I immediately got started on the whole "what the heck is wrong with my credit" research because, well, one of us needs to get a new car sooner than later. 

Much to my surprise, I received a phone message this afternoon from our CU contact (he obviously didn't get my husband's message!).  He said he had a question to ask me on behalf of the loan officer...and actually asked me the question.  So I've got a little time to think about my answer  They are seeking clarification on why one of my recent car lease payments was late.  It certainly wasn't intentional or for lack of funds.  Honestly, it was an innocent mistake - a combination of our old bank's payment processing lag times and change in my life (started a new job, which is crazy busy, back in September on top of continuing with my graduate studies).  In this particular case, I believe I had processed the payment close to the due date, only I must not have hit submit as I thought I did...so it was 30 days late.  I know it's no excuse, really I do.  I have no excuse for a late payment. 

I am thinking that the CU may be considering working something out for us (which would be GREAT, especially if the interest rate is good).  Why would they call with that question otherwise?  They're considering it, right?  That said, if anyone can provide some guidance on how I can answer that question, I'd really, really appreciate it.  I obviosly need to answer in such a way so as to hopefully get approved for a loan.

Your ideas will be most helpful!

Thanks in advance.

A

[guydiver]

Sounds like you already have your answer.  Just tell them what happened, and concentrate on measures you have/are taking so that it never happens again.  It's a CU, they are usually down to earth people that tend to deal with this sort of thing on a more personal basis than a big bank would.  Sounds like they want to give you the benefit of a doubt to me.  Go for it.

[pizzadude]

Yeah, I agree ~ it sounds like they actually want your business, so I would talk to them as suggested, explain, and I bet that it will work out for you.   Good luck !

[GrowingCredit]

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guydiver wrote:

Sounds like you already have your answer.  Just tell them what happened, and concentrate on measures you have/are taking so that it never happens again.  It's a CU, they are usually down to earth people that tend to deal with this sort of thing on a more personal basis than a big bank would.  Sounds like they want to give you the benefit of a doubt to me.  Go for it.

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+1

[a9m7c4]

Wanted to post an update:  The CU approved the loan for my husband with me as a co-signer.  Unfortunately, they did not approve us for enough money to get the car he wanted, but at least we had their offer on the table as a back-up plan to get my new car (which would be much cheaper).  We're most grateful for their offer, but I'm happy to say, we won't be using it, as we were able to obtain the financing we needed through dealer financing. 

Dealers WANT and NEED to sell cars.  In my husband's case, yes, his credit wasn't so great, but he has zero balances, our mortgage is paid on time and he's been at his job for quite a while.  The dealer's finance manager got him from bottom-rung to close to the top.  I was still asked to be a co-signer, which I am a little concerned about (my credit is better than his, but still not the best).  I need a car, too, and hopefully I can get one when my lease is up in July.  I'm working on cleaning things up with my own credit and will cross that bridge when I get to it.  I've got several months to make it happen.

I definitely experienced a little "buyer's remorse" after co-signing, but as I told my husband, I am not the best math person and not the most organized person.  Plus, we were at the dealer for HOURS, and I was so tired from work!  In the back of my head, I knew we could afford the payment, which is why I didn't back out.  I am always remorseful whenever I spend a lot of money at once and then I overcome that feeling...thankfully, I don't need to spend a lot of money at once on a regular basis.  Otherwise, I'd probably go insane.  I just need to improve my personal organization skills and start putting everything on paper (which I did last night) - it was CLEAR that we can and will afford the payment.  And once my expensive lease ends in July, you can bet your bottom dollar that I am aiming for a MUCH cheaper car payment, whether it's a lease or purchase.

Will keep you posted!

[GrowingCredit]

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a9m7c4 wrote:

Wanted to post an update:  The CU approved the loan for my husband with me as a co-signer.  Unfortunately, they did not approve us for enough money to get the car he wanted, but at least we had their offer on the table as a back-up plan to get my new car (which would be much cheaper).  We're most grateful for their offer, but I'm happy to say, we won't be using it, as we were able to obtain the financing we needed through dealer financing. 

Dealers WANT and NEED to sell cars.  In my husband's case, yes, his credit wasn't so great, but he has zero balances, our mortgage is paid on time and he's been at his job for quite a while.  The dealer's finance manager got him from bottom-rung to close to the top.  I was still asked to be a co-signer, which I am a little concerned about (my credit is better than his, but still not the best).  I need a car, too, and hopefully I can get one when my lease is up in July.  I'm working on cleaning things up with my own credit and will cross that bridge when I get to it.  I've got several months to make it happen.

I definitely experienced a little "buyer's remorse" after co-signing, but as I told my husband, I am not the best math person and not the most organized person.  Plus, we were at the dealer for HOURS, and I was so tired from work!  In the back of my head, I knew we could afford the payment, which is why I didn't back out.  I am always remorseful whenever I spend a lot of money at once and then I overcome that feeling...thankfully, I don't need to spend a lot of money at once on a regular basis.  Otherwise, I'd probably go insane.  I just need to improve my personal organization skills and start putting everything on paper (which I did last night) - it was CLEAR that we can and will afford the payment.  And once my expensive lease ends in July, you can bet your bottom dollar that I am aiming for a MUCH cheaper car payment, whether it's a lease or purchase.

Will keep you posted!

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Congrats.

And good luck with you new resolution.