Denied by Capital One

Anonymous · ‎02-03-2010

I have been thinking about getting a car for the past few weeks, but was holding off due to job situation uncertainty. Well, yesterday I got an alert from myfico.com stating that my Equifax score just jumped to 709, then later in the day I find out that my job is safe, and then a few hours later I get spam from Capital One encouraging me to apply for an auto loan. All the stars seem to be aligning, so I decide to pull the trigger and apply for a loan so that I can buy a 2008 Mustang GT V8 with only 5000 miles on it. The car is offered at $23,000, which is about 30% of my annual salary. I go to Capital One's site, fill out the information, then half a second later get an email telling me I have been denied.My debt to income ratio is less than 10%, and have had no late payments in over 3 years. I am disappointed in not getting the loan, and now I am wondering if this hard pull will drive down my score. This seems like a catch 22 to me. What gives? Should I apply at other lenders or hold off for a bit? Any advice?

Anonymous · ‎02-03-2010

Guess it depends on if you really need a car or not and if you really need "this" car. I would go to my bank or CU and speak

to a LO that way they should be at least able to tell you what qualify for. That way you are not totally in the dark.

Uborrow-Upay · ‎02-04-2010

@Anonymous wrote:
Guess it depends on if you really need a car or not and if you really need "this" car. I would go to my bank or CU and speak
to a LO that way they should be at least able to tell you what qualify for. That way you are not totally in the dark.

+1

Multiple inquiries for an auto loan or a mortgage loan (if they all occur within a brief period of time...someone else will chime in with exactly what that is) all together count as just one inquiry for scoring purposes. So if you do decide you want this car, shopping for a loan won't hurt you...you already have the inquiry from Cap One. But you've got to finish your loan shopping within a certain time window. (I'm guessing two weeks, but it's a guess!!)

Hoping for others to confirm this here...

Anonymous · ‎02-05-2010

With the credentials you listed there is no way you should have been denied especially through Capitol One. There has to be some other factor.

Jazzzy · ‎02-06-2010

@Anonymous wrote:
I have been thinking about getting a car for the past few weeks, but was holding off due to job situation uncertainty. Well, yesterday I got an alert from myfico.com stating that my Equifax score just jumped to 709, then later in the day I find out that my job is safe, and then a few hours later I get spam from Capital One encouraging me to apply for an auto loan. All the stars seem to be aligning, so I decide to pull the trigger and apply for a loan so that I can buy a 2008 Mustang GT V8 with only 5000 miles on it. The car is offered at $23,000, which is about 30% of my annual salary. I go to Capital One's site, fill out the information, then half a second later get an email telling me I have been denied.My debt to income ratio is less than 10%, and have had no late payments in over 3 years. I am disappointed in not getting the loan, and now I am wondering if this hard pull will drive down my score. This seems like a catch 22 to me. What gives? Should I apply at other lenders or hold off for a bit? Any advice?

Did they give you a reason for the denial? Was the denial based on info from one of the credit bureaus? If so, call and get the free copy of your report to make sure there are no mistakes on it. Any recent late payments?

You may get a bit of a ding for the inquiry, but it shouldn't be bad. Talk with your credit union about financing. Talk to the dealership about financing (but don't let them shop you around...tell them you simply have questions as to what might be available. Do not let them start pulling credit.)

Anonymous · ‎02-06-2010

OK I went to a dealer and ended up buying a 2007 New Beetle. Approved by Boeing Employees Credit Union for $15,000 at 6%. Thanks for the information everyone

Jazzzy · ‎02-06-2010

Congratulations!

MarineVietVet · ‎02-06-2010

@Anonymous wrote:
OK I went to a dealer and ended up buying a 2007 New Beetle. Approved by Boeing Employees Credit Union for $15,000 at 6%. Thanks for the information everyone

Not a bad rate at all!!!

Uborrow-Upay · ‎02-07-2010

@Anonymous wrote:
OK I went to a dealer and ended up buying a 2007 New Beetle. Approved by Boeing Employees Credit Union for $15,000 at 6%. Thanks for the information everyone

Congrats, tiffany98122! Good job!

Anonymous · ‎02-08-2010

@Anonymous wrote:
OK I went to a dealer and ended up buying a 2007 New Beetle. Approved by Boeing Employees Credit Union for $15,000 at 6%. Thanks for the information everyone

Congrats... Ohhhh and ahhhh you didn't miss anything by being denied by Capital One...you saved yourself a potential headache.