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Curious2011
Posts: 2
Registered: ‎08-25-2011
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Getting an auto loan while on consumer credit counseling

If someone could please explain this to me...  Okay so my husband has a score of 692 and we have been on consumer credit counseling for about 1.5 years on credit cards only and we are not behind on any other payments such as car payments, mortgage, etc.  So we need to trade in my vehicle and for some reason we are now in the waiting game to get a loan and I guess I am confused because we do not have anything else negative on our report and it is almost like we have the worst credit ever because we are doing credit counseling...  Any tips or suggestions??

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llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Getting an auto loan while on consumer credit counseling

Did they throw out the denial reasons? If not yet, you should get them soon. I'd focus on those. I'd also pull your credit reports (free annually from annualcreditreport.com). Even if you pay 100% on time, those CCs can still mark you as late because you are paying less than the original agreed to payment. Your lender could be seeing that and getting spooked.

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Curious2011
Posts: 2
Registered: ‎08-25-2011
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Re: Getting an auto loan while on consumer credit counseling

One lender flat out denied us due to having consumer credit on our report.  We have pulled our report and no late payments and only a few accounts state consumer credit counseling.  All accounts state up to date and on time paying so this is really throwing us for a loop.

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llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Getting an auto loan while on consumer credit counseling

You are fortunate to not have any lates. Good deal. Maybe that's the lender's criteria...you can't be with groups like CCCS. I'd find another lender. I'd sit down with a local bank or CU and sit face to face and demonstrate how you can afford the car and show how you are paying off that CC debt. Some lenders get spooked because they think you'd short-change them by trying to settle on debts or negotiate a lower payment which causes them to lose money.

Established Contributor
demi
Posts: 858
Registered: ‎09-18-2007
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Re: Getting an auto loan while on consumer credit counseling

Have you talked to your counseling agency.   When I went thru my debt management plan, I could not apply for any CC, but they had told me IF I needed to get an auto loan or house loan, to work with them...they may have some insights or know who is good to work with.  I didn't get a car loan during the time I was in my DMP, but I did buy a house, no problem, but it was about 10 months before I was done.

 

 


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Established Contributor
Chris123nTx
Posts: 500
Registered: ‎05-11-2007
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Re: Getting an auto loan while on consumer credit counseling

My understanding is that while in a consumer conseling plan, that it is often looked at in a similar way as being in chp 13. I could be wrong, have been before, but I think that may be why some lenders are looking at you the way you said they are.
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marty56
Posts: 5,679
Registered: ‎10-06-2007
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Re: Getting an auto loan while on consumer credit counseling

Being in a CCCS has no effect on your FICO score and the only indication you are enrolled in one may be a comment that the CCC adds to the TL.  From my own experience, lnders don't seem to be interested in the TL comments about CCCS.  If a particular lender doesn't like the CCCS comment, they will be others that don't care.  I would be very careful about applying for any credit while in a CCCS since some companies (BofA) could remove you from the program if they see any new credit.  That happened to me and it led to my only derog which will remain on my CR for the full 7 years.  Don't expect any mercy from BofA.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Established Contributor
demi
Posts: 858
Registered: ‎09-18-2007
0

Re: Getting an auto loan while on consumer credit counseling

Second that (BOFA)...they are now the only baddie left on my report...and it was while I was setting up the debt management plan...seven years ago, will fall off in a few months.  Tried goodwill, etc.  I was late (it wasn even bofa then) with that card, and they recommended the dmp...but to no avail could I get it removed...it wasn't the cccs's fault, I was late on the card going into it.


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