Reply
Established Member
longwalkto800
Posts: 10
Registered: ‎06-04-2013
0

Got denied :( seeking best next steps

I went to a Jeep dealership last month and worked out a price for my first car (lived in the city for 10 years and finally moving to suburbs), a Jeep Grand Cherokee Overland (45k), and was quickly denied (as the jeep finance guy told me) by all the banks they went to (chrysler, ally, rbscitizens, santander, wells fargo, fifth third, jpmorgan, td auto).

 

Myfico score at the time: 640

# of credit cards: 0 (my old credit cards accounts are closed as I finally paid them all off)

 

Since then:

- Myfico: 661

- TU: 624

- TU (from credikarma): 688

- Vantage (from ck): 652

- Got approved for a Discover IT card with limit of $1200 (just got the card two days ago)

 

Other Information:

I make $155,000/yr and my DTI is 4/5 and I was looking to put $5k down on the car and am looking to try again at buying a car at the end August when I am finally going to move.

 

 

What are my best options (not sure how to go about the CU route) and do I apply for more credit cards because I have such little revolving credit before the end of the summer or will that hurt more because of the additional inquiries??

 

Thanks!

 


Starting Score: TU 624 EQ 640 May 2013
Current Score: TU 651 EQ 661 EX 628
Goal Score: 800


Take the myFICO Fitness Challenge
Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012
0

Re: Got denied :( seeking best next steps

What does 4/5 mean?  You mean 80%?  So iow, you have 124k in debt?  Is this a mortgage or student loans?  Moving?  If this 124k in debt is your mortgage, are you selling your home in 2 months and got a buyer that will make you some profit?

 

5k down payment is kind low for the amt of income you have.  But also keep in mind that this is your first car.  Have you thought about all the other expenses involved with a car:  insurance, title, registration, maintenance, gas.. all that adds up.

 

 

Maybe a better move would be to increase your down pmt and/or find a less expensive purchase for your first car.  Just a suggestion...but maybe your second car purchase is the one that cost 45k.

Valued Contributor
p-
Posts: 2,655
Registered: ‎06-05-2008
0

Re: Got denied :( seeking best next steps


longwalkto800 wrote:...was quickly denied... credit cards: 0...approved for a Discover IT card with limit of $1200...my best options?

Having open credit cards in your mix would be very helpful.  Were any of your old credit cards Amex?  If you are in good standing with them, you might consider adding one for the backdating.  

 

Aside from that, you didn't mention what negative accounts you have.  Are there collections or late payments?  What on your report is holding you down?

 

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Established Member
longwalkto800
Posts: 10
Registered: ‎06-04-2013
0

Re: Got denied :( seeking best next steps

Thanks for the response ccnewcc, the 4/5 DTI was a front end/back end ratio that I saw another poster use in one of the threads.  Easiest way to say it is that out of my monthly income, housing and other debt accounts for just 5% of my income.  I have only 10k in student loan debt left at this point

 

You're right that 5K is low for my income level but I just paid off all of my outstanding revolving debt in the past 9 months (about $20k) so I'm building up savings for this car currently (5k was just a number I threw out there but I suppose by the end of the summer I could be much closer to 10-15K that I could put down on the car).

 

I understand the other costs associated with a car, but considering that after my personal expenses every month (housing [500], cable [covered by housing], electric [covered by housing], phone [110], food (400), misc shopping and entertainment [500], student loans [200]) I still have over $7,000 a month in disposable income after taxes.  I will obviously be trying to save as much as possible but don't really feel like a $45,000 car is breaking the bank given my income.  Just trying to figure out if there's a certain % of down payment I need or if it's impossible to get an approval for that amount given my score and revolving credit.

 

Thanks again.


Starting Score: TU 624 EQ 640 May 2013
Current Score: TU 651 EQ 661 EX 628
Goal Score: 800


Take the myFICO Fitness Challenge
Established Member
longwalkto800
Posts: 10
Registered: ‎06-04-2013
0

Re: Got denied :( seeking best next steps

[ Edited ]

p- wrote:

longwalkto800 wrote:...was quickly denied... credit cards: 0...approved for a Discover IT card with limit of $1200...my best options?

Having open credit cards in your mix would be very helpful.  Were any of your old credit cards Amex?  If you are in good standing with them, you might consider adding one for the backdating.  

 

Aside from that, you didn't mention what negative accounts you have.  Are there collections or late payments?  What on your report is holding you down?

 



One of my old cards was an Amex.  I'm completely paid off with them but not sure if they would take me back or not since I had lates that aren't yet 2 years old.

 

I have 0 collections on my report.  Just a slew of late payments that occurred before I got my current job 16 months ago and was able to get the payments back under control.  Almost all late payments will hit 2 years as of end of March 2014 and none within the past year.

 

Any ideas on what type of Amex I would feasibly be able to apply for?  I only had one late payment with Amex that shows up on my credit report.


Starting Score: TU 624 EQ 640 May 2013
Current Score: TU 651 EQ 661 EX 628
Goal Score: 800


Take the myFICO Fitness Challenge
Valued Contributor
p-
Posts: 2,655
Registered: ‎06-05-2008
0

Re: Got denied :( seeking best next steps


longwalkto800 wrote:  ...Any ideas on what type of Amex I would feasibly be able to apply for?

From what I've heard their charge cards with annual fees are the easiest to get.  As long as you closed it, not them, you probably have a chance.  You might check and see if you have any pre-approved offers with them.  That would be the best help for your revolver history, much better than a slew of new cards.

 

You might consider trying to goodwill the lates you have, I'm sure that's what hurt you with the auto lenders.  And joining a local credit union where you can sit down and talk to the underwriter in person might help you get the financing you want for a vehicle.  At least you'd be able to explain the lates, and how you caught up and paid off everything.

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Established Member
longwalkto800
Posts: 10
Registered: ‎06-04-2013
0

Re: Got denied :( seeking best next steps


p- wrote:

longwalkto800 wrote:  ...Any ideas on what type of Amex I would feasibly be able to apply for?

From what I've heard their charge cards with annual fees are the easiest to get.  As long as you closed it, not them, you probably have a chance.  You might check and see if you have any pre-approved offers with them.  That would be the best help for your revolver history, much better than a slew of new cards.

 

You might consider trying to goodwill the lates you have, I'm sure that's what hurt you with the auto lenders.  And joining a local credit union where you can sit down and talk to the underwriter in person might help you get the financing you want for a vehicle.  At least you'd be able to explain the lates, and how you caught up and paid off everything.


Not sure I understand how to "goodwill the lates" but I'll try to google.  Thanks for the input :smileyhappy:


Starting Score: TU 624 EQ 640 May 2013
Current Score: TU 651 EQ 661 EX 628
Goal Score: 800


Take the myFICO Fitness Challenge
Valued Contributor
p-
Posts: 2,655
Registered: ‎06-05-2008
0

Re: Got denied :( seeking best next steps


longwalkto800 wrote:  Not sure I understand how to "goodwill the lates" but I'll try to google.  Thanks for the input :smileyhappy:

Goodwill means you send them letters explaining what happened, and ask them to, as a goodwill gesture, remove the lates from the record.  It doesn't always work, and takes persistence, but when it does it can help a lot.  If you search this forum for "GW success"  and "Goodwill succeess" plus the name of the company, you'll see what others did.

 

Also, this thread will be helpful:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

 

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012
0

Re: Got denied :( seeking best next steps

[ Edited ]

Oh okay front end back end gotcha.  I thought you were trying to say 80% and then want to finance another 40k then wondering why you were declined.

 

 

Did they say why you were declined?  I mean ppl get approved for cars with scores like yours and worse.  And you have decent income so I wonder why they wouldn't approve you other than for your scores.

 

GWing lates and cleaning your CR will help for sure.  Bigger down payment will really help along with a local or good CU for financing.

Regular Contributor
Hoya08
Posts: 126
Registered: ‎06-05-2013
0

Re: Got denied :( seeking best next steps

Your situation is surprising considering the Mrs and I qualified for a $50,000 SUV with $0 down payment at 4.49% for 72 months back in 2010.

 

We applied jointly and our scores were probably each around 640s.  We also had over $30k in CC debt and our combined income was less than yours when we were approved!

 

However, our credit history was solid without any late payments on CCs and our two-previous auto loans (both had been paid off 4-years prior).

 

You mentioned a few late payments, but how long is your credit history?


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}