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Denied... FICO's are all over 680 No negatives

New Contributor

Denied... FICO's are all over 680 No negatives

 I was denied at the CU and dealership yesterday for a 30k car loan. reason for denial: limited credit history. They suggest I get  cosigner with a 700 or better credit score. debt to income ratio under 20%. Credit utilization under 2% at time of denial. Income around ~30k. Even though i have generally have low credit limits, wouldn't I seem like a much more prime borrower since I have extra income available that can sustain a car note? I feel its unfair that my 4 year credit history overshadows the fact that I have a PERFECT payment history, not one blemish on my credit reports other than a few inquires on TU. 

 

FICO's as of 9/1 are

   TU            EQ                                                                                                   EX

~686           717 (Due to EQ not updating yet to show 2% util )        737(Lender pulled)

 

My next next ace in my sleeve was to use an online lender such as Blue Monkey, UP2DRIVE, and myautoloan. But with a denial because limited credit lingering over my head, I feel my chances of being approved slim to none. What infuriates me about all this is the fact that I have been doing the right thing since my first opened account, took the time to learn the importance of having a good credit score/report,(thanks to this site BTW) and how to maintain and keep my score/report in great condition. That alone should make me that much more of a prime borrower since I know what could possibly happen to my borrowing future if I start slipping up now. But I guess I don't get any credit for  that.


StartingScore:b>TU 587 EQ 627 5/14/10
Current Score: TU 686 EQ 733
Goal Score: TU 720 EQ 720 EX 720 1/1/11
Take the FICO Fitness Challenge
Message 1 of 42
41 REPLIES
Regular Contributor

Re: Denied... FICO's are all over 680 No negatives

Go through Capital One

Message 2 of 42
Frequent Contributor

Re: Denied... FICO's are all over 680 No negatives

Capital one had been sending me pre-approved letters every since I got my credit card with them. Yesterday I finally decided to go to the dealership they had listed on the letter. I  got approved but at an astounding 20.7% rate.

 

As bad as I wanted that Chevrolet Silverado I said no thanks and got the heck up out of there!


3/13/2017 | Equifax: 663| Experian: 697| TransUnion: 740|
Goal Score: 750 - Across The Board --- Overall UTI: 9% - Debt: $26,089 - Credit: $230,100
NFCU goRewards: $18K | Navcheck: $15K | NFCU CashRewards: $25K | Wal-Mart: $6K | Sam's: $8K | Care Credit: $15.6K | Lowe's: $17K | Cap1 Venture1: $8.5K | Amazon Prime: $6K | USAA AMEX CashR $1K | AMEX HHonors: $2K | BOA MC: $18K | BOA BASS PS MC $14K | Blispay Visa: $5K | Home Depot: $7.5K | Marvel MC: $25K | Discover IT: $2K | Penfed Amex: $14K | Penfed Visa: $6K
Message 3 of 42
Frequent Contributor

Re: Denied... FICO's are all over 680 No negatives

Cass, while you do show perfect payment history, the dealership might be concerned about the fact that have no evidence of handling a high limit revolving card or installment loan. This is particularly true if the ONLY reason they cited on your denial was limited credit history.

 

With 4 years of perfect payment history and 2% utilization, I'm curious why your scores aren't higher. I would expect to see scores higher than 740. Have you opened any accounts in the last year? Inquiries in the last year? Too many accounts with balances?

 

I recently checked my FICOs from TU and EQ. I'm also at a 4 year history and was at TU 741 and EQ 737. I had seven accounts reporting with a balance so I'm sure I lost some points there. I also had credit pulled from a car dealership, which pegged me at an auto-FICO of TU 744 and EX 782. That was enough to qualify me for 0% financing.

 

How much of a down-payment are you looking to put down? Perhaps that would help ease the car dealership's concerns a bit.


Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


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Message 4 of 42
New Contributor

Re: Denied... FICO's are all over 680 No negatives

 MSRP for my car is $38475

 After negotiation, my price came down to $34378 with an out the door price of $36500 inc tax, title, etc.  with a 10% down payment  I was looking at an $33000 balance. 

 

1 cc opened this year with a limit of 1k

 

5 inqs on TU

1 inqs on EQ

2 inqs on EX

 

Tu and EQ have not updated yet to show the 2% util yet.

 

 


StartingScore:b>TU 587 EQ 627 5/14/10
Current Score: TU 686 EQ 733
Goal Score: TU 720 EQ 720 EX 720 1/1/11
Take the FICO Fitness Challenge
Message 5 of 42
Epic Contributor

Re: Denied... FICO's are all over 680 No negatives

What kind of car?

Message 6 of 42
Frequent Contributor

Re: Denied... FICO's are all over 680 No negatives

Cass, any chance you might be able to qualify through a college grad program?

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
Goal Score: 800


Take the FICO Fitness Challenge
Message 7 of 42
New Contributor

Re: Denied... FICO's are all over 680 No negatives

 


Creditaddict wrote:

What kind of car?


Mustang GT

 


StartingScore:b>TU 587 EQ 627 5/14/10
Current Score: TU 686 EQ 733
Goal Score: TU 720 EQ 720 EX 720 1/1/11
Take the FICO Fitness Challenge
Message 8 of 42
New Contributor

Re: Denied... FICO's are all over 680 No negatives

 


andyaycw wrote:
Cass, any chance you might be able to qualify through a college grad program?

 

 No, I do not qualify.

The dealer told me if I come with a cosigner with auto loan history, I will get approved. My father comes to mind, but he has a few recent lates and collections keeping him from the  700's. Even if I was able to get all of his negatives removed, I don't see myself being able to have them removed within the next couple of  weeks.


StartingScore:b>TU 587 EQ 627 5/14/10
Current Score: TU 686 EQ 733
Goal Score: TU 720 EQ 720 EX 720 1/1/11
Take the FICO Fitness Challenge
Message 9 of 42
Established Member

Re: Denied... FICO's are all over 680 No negatives

Your income is holding you back some id imagine, no lender wants to loan you more then you make in a year. A 33000 car loan is easily a 600+ payment, plus insurance and gas will put you over 1k a month, if you make 30k a yr(2500 a month) I can see why they would be reluctant to lend the money, esp if you have auto credit...
starting score in feb 2008
Eq:630
Tu:630

current score as of aug 3 2010
eq:692
tu: 697

Message 10 of 42