GM Financial Approval

[Anonymous]

Desperately needed a car and the credit unions wouldn't touch my wife's 625 TU auto score, so we went to the dealership and asked them to go through GM Financial or Capital One where we were "pre-qualified." Since TU was her best and we told the dealership we only wanted the single best shot to minimize inquiries (too many already and though they only count as one on score, future CC apps will count them individually), he took us through GM.

$28,000 after $3500 down

High rate (will refinance through DCU in 12 months)

TU Auto: 625

No installment loans open or paid

7 inquiries

Good income

[Anonymous]

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@Anonymous wrote:

Desperately needed a car and the credit unions wouldn't touch my wife's 625 TU auto score, so we went to the dealership and asked them to go through GM Financial or Capital One where we were "pre-qualified." Since TU was her best and we told the dealership we only wanted the single best shot to minimize inquiries (too many already and though they only count as one on score, future CC apps will count them individually), he took us through GM.

$28,000 after $3500 down

High rate (will refinance through DCU in 12 months)

TU Auto: 625

No installment loans open or paid

7 inquiries

Good income

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Don't wait a full 12 months to refnance, work your scores over the next 6 months and get them in the mid 600's or above, that with 6 good months of installment loan history will get you a decent rate.  I did that when I was in a similar position a few years ago and in 6 months I was able to refinance from 12.57% to 4.29% saving me thousands over the life of the loan.  If you wait a full year they will likley treat your car as a used car where if you do it within a few months your likley to get it treated the same as a new car loan so lower interest and higher allowable LTV ratio. 

[pipeguy]

You didn't mention the APR rate on the loan, I'll assume its high. If I were you I'd contact DCU right now and ask if they are interested in picking up the loan - if its no, they'll probably suggest you contact them again in 6 month - consider that as a "pre-approval" of sorts - write down the date and time and person you spoke to and then call back in 6 months saying "okay I'm ready".   

[Anonymous]

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@pipeguy wrote:

You didn't mention the APR rate on the loan, I'll assume its high. If I were you I'd contact DCU right now and ask if they are interested in picking up the loan - if its no, they'll probably suggest you contact them again in 6 month - consider that as a "pre-approval" of sorts - write down the date and time and person you spoke to and then call back in 6 months saying "okay I'm ready".   

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The rate is so high I'm too ashamed to even post it. (fine, 18%)

We went through DCU first. Was going to wait a year but you're right - they said six months if I go through CapOne or someone else first. My wife's birthday is 6 months from now. Sounds like a great present to cut payments and then finance her something nice with the money I'll save.

[Anonymous]

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@Anonymous wrote:

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@pipeguy wrote:

You didn't mention the APR rate on the loan, I'll assume its high. If I were you I'd contact DCU right now and ask if they are interested in picking up the loan - if its no, they'll probably suggest you contact them again in 6 month - consider that as a "pre-approval" of sorts - write down the date and time and person you spoke to and then call back in 6 months saying "okay I'm ready".   

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The rate is so high I'm too ashamed to even post it. (fine, 18%)

We went through DCU first. Was going to wait a year but you're right - they said six months if I go through CapOne or someone else first. My wife's birthday is 6 months from now. Sounds like a great present to cut payments and then finance her something nice with the money I'll save.

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Many of us have been where you are and were able to improve our situations through some help from folks here so don't be embarrassed.  Keep a close eye on the loan to value ratio and if needed or possible make some extra principle payments for those 6 months.  Also check out the rebuilding and fico score sections here to learn how to get those scores bumped.  I think just having an installment loan reporting on time will do a lot to help, if there are any collections or other negatives work on those also.   My full story is I had to take 12.57% with Santander (talking about embarrassment) then 6 months later I did a refi with Cap One at 8.5% and litterally a week later I joined NFCU at the advice of many here and was preapproved for a refinance of my auto loan at 4.29% so my car was refinanced twice in less than 10 days.  If you can get into NFCU I would highly suggest them, they are open to folks with thin credit profiles and lower scores.

[Appleman]

One of the best things about myFICO. You usually get solid advice without judgement, many of us have been there are trying to help out others.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@pipeguy wrote:

You didn't mention the APR rate on the loan, I'll assume its high. If I were you I'd contact DCU right now and ask if they are interested in picking up the loan - if its no, they'll probably suggest you contact them again in 6 month - consider that as a "pre-approval" of sorts - write down the date and time and person you spoke to and then call back in 6 months saying "okay I'm ready".   

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The rate is so high I'm too ashamed to even post it. (fine, 18%)

We went through DCU first. Was going to wait a year but you're right - they said six months if I go through CapOne or someone else first. My wife's birthday is 6 months from now. Sounds like a great present to cut payments and then finance her something nice with the money I'll save.

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Many of us have been where you are and were able to improve our situations through some help from folks here so don't be embarrassed.  Keep a close eye on the loan to value ratio and if needed or possible make some extra principle payments for those 6 months.  Also check out the rebuilding and fico score sections here to learn how to get those scores bumped.  I think just having an installment loan reporting on time will do a lot to help, if there are any collections or other negatives work on those also.   My full story is I had to take 12.57% with Santander (talking about embarrassment) then 6 months later I did a refi with Cap One at 8.5% and litterally a week later I joined NFCU at the advice of many here and was preapproved for a refinance of my auto loan at 4.29% so my car was refinanced twice in less than 10 days.  If you can get into NFCU I would highly suggest them, they are open to folks with thin credit profiles and lower scores.

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After apping at the dealership, I drove straight to my NFCU branch on Monday. I had my POI and POA plus NFCU App and Navy League email with me and had them fax it in. On the way back to the dealership yesterday to buy the car I called NFCU just in case I had a miracle 14-hour account approval. They didn't even have me in the system yet, so oh well. Needless to say, I intend to go down the same path you did except I'll skip Capital One.

[Anonymous]

Good plan