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Regular Contributor
Tay09
Posts: 116
Registered: ‎09-02-2012
0

Denied!

So I went out on a limb to see if I would get approved for an auto loan for 15K through my credit union, I only planned on using 10K. The rep told me they usually look for a score of 600 for approvaI. I figured since my TU is 631 and EQ is 623 I would give it a try. Well, my score came in at 610 I'm not sure which reporting agency but she said they can't approve me because I have way too much student loans which are not even in repayment at the moment. WHAT!!  Guess it serves me right for getting an MPA. 

 

 

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: Denied!

They should have asked you about your DTI before hand, at least you could have saved yourself the hard pull.  That's pretty disappointing to hit their qualifier and get declined for something else.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
Tay09
Posts: 116
Registered: ‎09-02-2012
0

Re: Denied!

The reason doesn't make any sense to me. If that's the case no one would be able to get an auto loan if they had student loans or a mortgage. 

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: Denied!

[ Edited ]

It's related to Income to Debt ratio.

 

What's your income, what's your total student debt?  Do you know what your payments will be once your repayment starts?  It was probably the combination of the 610 with a questionable DTI.  The 15k isn't exactly a HUGE amount to request either

 

Edit: Random smiley, boards are weird this morning

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
Tay09
Posts: 116
Registered: ‎09-02-2012
0

Re: Denied!

Income is $50K and my loan debt is almost $90K. Repayment will prob be close to $600 a month. 

 

My CU said i should be fine with a cosigner but i didnt want to do that. Should I try a bank like Cap One?

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: Denied!

Depends on what APR you may be fine with.  Did the CU indicate at what point they might accept you?  Like if you hit 650 would they be ok?  There's a big difference between financing Cap1 and a CU.  My local CU said at 650TU I'd be able to get 7.99% on a used car, whereas mid teens looks commonplace for Cap1 at our scores.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
Tay09
Posts: 116
Registered: ‎09-02-2012
0

Re: Denied!

No my CU didn't give me a score where I might be accepted, they just suggested I get a cosigner. How many days do I have before the hard pulls affect me. I might as well just see what I get from Cap One since my CU already pulled.

Regular Contributor
Tay09
Posts: 116
Registered: ‎09-02-2012
0

Re: Denied!

Update...well Capital One approved me for a loan up to $21,600.

Valued Contributor
Epcot
Posts: 2,784
Registered: ‎10-10-2012
0

Re: Denied!

Congrats on the Capital One approval!

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 809 EX 774 TU 805
App free since 4/11/13
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: Denied!

What was the APR

 

And congrats!!

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL

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