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New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Denied??????

I'm in need of a car due to new job offer that is going to pay me about 20K more annually.  The company I'm leaving supplies me with a company car. (I've been there about a 1 1/2)

So.....I check my credit score online to find out an average of 630.  I only have a bit over 6K in credit card debt.  A few 30 day lates back in 2007.  Other than that pretty clean.

 

My minimum monthly payments are just under $200.  My other expenses are rent $950......and I make aprox 40K per year.

 

My credit union shot me down for a 10K auto loan.

 

I don't get it

Community Leader
Senior Contributor
StartingOver10
Posts: 3,922
Registered: ‎03-06-2010
0

Re: Denied??????

[ Edited ]

What are your actual FICO scores? An average won't help. Also, what were the specific reasons your CU turned you down? Was it because you are between jobs? That is how it looks from your post. Have you started the new job yet? One more thing, how is your utilization on your accounts? You mention $6000 owed, but $6000 owed out of a credit line of say $7500 is different than $6000 owed out of a credit line of $50,000. It's the percentage of debt that is a big factor in the scoring formula.

New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Re: Denied??????

No....I'm still employed.  In order to take the new job....I'm going to need a car. 

 

I don't have a FICO score.....I used another online credit report that shows the following

 

TransUnion - 648

 

Equifax - 628

 

Experian - 617

 

I have two credit cards

 

Capital one -$ 1500

Householdbank - $ 5000

 

Both are pretty much maxed out.  But, I thought it was the debt to income that mattered?  I make about 40K.....soon to be 60k with new job

 

Total monthly debt is $ 1200 per month which is under 40% debt/income

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Denied??????


biffhamilton wrote:

No....I'm still employed.  In order to take the new job....I'm going to need a car. 

 

I don't have a FICO score.....I used another online credit report that shows the following

 

TransUnion - 648

 

Equifax - 628

 

Experian - 617

 

I have two credit cards

 

Capital one -$ 1500

Householdbank - $ 5000

 

Both are pretty much maxed out.  But, I thought it was the debt to income that mattered?  I make about 40K.....soon to be 60k with new job

 

Total monthly debt is $ 1200 per month which is under 40% debt/income


Those scores are not FICO scores.  The lender is going to look at FICO scores.  Do you have anything from your CU listing your reasons for denial?  Can you ask your CU if they will give you your scores? 

Debt to income matters to the lender, so it is considered in your overall approval, but it is not a part of your FICO score.  Utlization percentage on revolving accounts is a large part of your FICO score (30% IIRC).  So having only two credit cards that are both near maxed out is really hurting your score.  If you were able to pay those cards down, you'd see a considerable score jump. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Re: Denied??????

[ Edited ]

The guy on the phone said my score was a C rate. (fair)

 

The thing that sucks the most is I can even get by with a $ 5,000 dollar car and payoff everything with in a years time based on the extra 20g's I'll be making per year.

 

I just need a car right away....and don't have any free cash lying around.

 

I also don't want to go all over town applying for loans messing up the decent credit that I have.

 

I thought Credit Unions gave me my best chance......and if that's the case I'm screwed

 

Thanks for the help BTW

New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Re: Denied??????

I just registered on FICO....

 

670 is my score

Established Member
JKeeler1121
Posts: 36
Registered: ‎10-10-2012
0

Re: Denied??????

I think you will be approved by a lender not credit union they are much harder approval. You can go apply to like americredit, fleet financial, roadloans. Good Luck 


biffhamilton wrote:

I just registered on FICO....

 

670 is my score


 

New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Re: Denied??????

Would you just go to a local dealer? (I haven't even picked out a car yet)

 

or

 

Would you apply online with one of the listings you provided

 

Thanks again

Established Member
JKeeler1121
Posts: 36
Registered: ‎10-10-2012
0

Re: Denied??????

I would apply on fleet financial what is your limit on amount??


biffhamilton wrote:

Would you just go to a local dealer? (I haven't even picked out a car yet)

 

or

 

Would you apply online with one of the listings you provided

 

Thanks again



my brother in law brought a 2008 Mercedes ML350 with Americredit 33,250.00 2500 down fico 548 and income was 98,000.00

New Member
biffhamilton
Posts: 12
Registered: ‎10-10-2012
0

Re: Denied??????

That's a nice ride. I won't rule out a Benz once I have all my debt gone.

 

My plan is to purchase an 5-8K car (Honda civic like) I'm guessing $ 300 per month range for 2 years...and pay it off early....as well as my two cards

 

By that time I should be able to get something nice


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