NFCU FAN CLUB FAN#1
emily504 wrote:UpNComing
We are looking to buy new car soon. My score is in mid 700 with annual income 103k and my husband abour 82k. We bought our home about 2 years ago with the monthly mortgage payment about 3000. My current report show that that i have credit card DTI about 50%. However I recently just paid off my credit bill to DTI ratio 20% but the cc report has not reflect yet still show 50% util. what is our chances to get approve for arround 55k car loan with 50% down? Should I wait till my credit report update? I have credit history about 14 years now. Have 1 car loan applied back in 2001 and paid off on 2006. A few late on the auto loan back on 2004 and 1 late 30 days back on Jan 2006 on credit card.
First, with 50% down, just about everyone is guaranteed an approval from somebody. Also, with scores in the mid 700s, you are almost guaranteed an approval as long as your DTI is okay, which it seems to be. Also, keep in mind, that late payment from 2004 on your auto loan should no longer be on your report, so your auto-enhanced FICO will likely be even higher than your regular FICO.
Just a question though. Where did you get your mid 700 score? A lot of places offer what we call FAKO scores so it is important to know whether the score you have is a FICO or not.
If it is in fact a FICO, you should be fine. I would definitely recommend waiting for your new CC balances to report though. You should see a nice score boost once that happens, assuming it went somewhere just under 20% and not just over. If you wait, your FICO should go up, which should get you a lower interest rate. Bottom line though, I see your chance of approval at 100%, but your interest rate will most likely benefit from waiting until your new balances post to your CR.
Starting Score: FICO: 587 EX, 594 EQ, 632 TU, 2/15/12; USAA FAKO: 525 EX, 541 EQ, 525 TU, 2/15/12
emily504 wrote:Yes got my score through MyFico website. I am just concern with my high credit balance.
Before paying off have about total 11k balance out of 21k total credit balance. Now I left with 3700 balance with total of 21k credit. My feeling tell me to wait till credit report reflect which probably would be sometimes on mid May.
You will definitely be approved either way, and most likely with a good interest rate. However, after your lower balances report, you should get the best interest rates, or pretty close. Also, do you have a relationship with a CU? The best thing to do is go into the dealer with preapproved financing and ask them to beat it. Many CUs offer outstanding interest rates. If you don't, I would still secure an offer from your bank, or Capital One, or someone first. Then the dealer can't play any games with financing. They can beat your rate, or you can use your outside financing.
When applying for an auto loan, do they just take into account your score or do they look at your whole credit report. Say my credit score is low 600's, and I had a car loan that had quite a few 30 day lates, and 1 60-day late in 2007 but made every payment on time for the last year of that loan and paid off in 2008, how much does that factor into my chances? I also have a recent car loan with the same CU, have made every payment on time for over a year except they marked me for 1 30-day late in Dec 2011 for being 75 cents short on a late fee that I was unaware of.
Dani62384 wrote:When applying for an auto loan, do they just take into account your score or do they look at your whole credit report. Say my credit score is low 600's, and I had a car loan that had quite a few 30 day lates, and 1 60-day late in 2007 but made every payment on time for the last year of that loan and paid off in 2008, how much does that factor into my chances? I also have a recent car loan with the same CU, have made every payment on time for over a year except they marked me for 1 30-day late in Dec 2011 for being 75 cents short on a late fee that I was unaware of.
The short answer is: both.
The longer answer is that the score generally will play a bigger part in your interest rate while your report will play a big part in whether or not you are approved. They are also looking for specific things on your report, such as whether or not you have previous installment history (auto or mortgage) and how you paid that. Keep in mind most auto lenders also use an auto-enhanced FICO score. This score is similar to your regular FICO but puts more weight on past auto loans. Unfortunately this will really hurt you with a bunch of 30 day lates, one very recently, and a 60 day late.
I'm not in a position to say what your approval chances are and what your interest rates would be like, but those lates will really hurt you. You don't get bonus points for having made every payment over a year on time, that is expected, that is what you should do always. You do get huge negative points for missing payments, and you did so less than 6 months ago. That will hurt.
ETA: They also consider other factors such as your down payment, DTI, and value of the car you are buying (ie the equity you will have on it) when deciding on an approval and interest rate. A higher down payment will go a long way to make up for negatives on your report.
tyler511 wrote:Hi Jimbo,
Thanks for the advise!!
I got my loan increased to $23,000. Affinity FCU Rocks!!
That is great, congrats on your approval! Another suggestion is to let the dealer try to beat your financing when you pick the car you want. The ideal way to go is to have secured financing when you go in so they don't jerk you around, but let them try to beat it. Often they have relationships with banks that can get better rates. If they can't, you already have a good offer with a solid APR. Enjoy your new car and let us know what you end up with!
If you get financing FIRST to CU and then go to Dealer for him to beat it - are you not running a "hard" credit check twice? I have a 736 score one the 2nd credit check will bump me down. 
I wanted to do this BUT I have 3 inquiries and we need two cars - buying 2 weeks apart so that will make 4 inquiries ( 2 cars- 1st CU then Dealer.. OUCH).
Thoughts?>???
I was thinking just enforce to the dealer that you need the 1.99 that they offer and you wont tolerate commssion off your rate.
Ideas?
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