If not Santander than who?

Anonymous · ‎01-14-2016

I'm looking at getting a car loan. I've been denied by NFCU and Capital One.
My ratings are in my signature, I do not have access to a true fico score.
I am currently making between 36000 and 42000 a year. I drive DoorDash/Lyft/Uber while I am a full time college student (26 years old).

I'm looking for a loan around 10-14,000 and am willing to accept a slightly higher interest rate (8-14). I do not want to generate lots of inquiries on my credit history. I'd like to walk to a dealer with a pre-approval in hand. I was intending on refinancing the car after Year 1 anyway (after I go through some credit repair and pay off some old accounts)

I was considering MyAutoLoan and AutoCreditExpress but am unsure about the quality of the loans, the reputation of the lenders, and the terms under which they grant the loans.
I'm located in the Bay Area and some of the only CU's around are Meriwest, SFFCU, and StarOne.
I would appreciate it if someone could provide some information that would help me out.

Appreciate the help guys

sccredit · ‎01-14-2016

With your scores you will likely have only the dealer as an option if CapOne said no. I would think your interest rate would likely be higher than 10%

azguy13 · ‎01-14-2016

@sccredit wrote:
With your scores you will likely have only the dealer as an option if CapOne said no. I would think your interest rate would likely be higher than 10%

+1

With your scores in the high 500s from Cap1, the dealer is definitely the best option. If I had to guess, and that is what this is, I would say you will fall into the 14% area. Car dealerships, while a pain in the rear, have worked deals with worse scores. But, the APR is going to be high. On a good note, a friend of mine is an auto loan underwriter and he approves people in the high 500s over people in the 680s, depending on the report.

Anonymous · ‎01-15-2016

So the dealership (a Honda dealership) pulled my report and I have a 597 with Experian Auto V8. The problem is that I am employed by Uber/Lyft/DoorDash. And while this car won't be used for either of those things, the guy said that the lenders they work with don't like to lend to people who work Uber because of a lot of uncertainties and they are required by law to disclose to the lenders the type of employment. He recommended I get a pre approval personally from a lending institution and that it would work better.

Anyone have any insight on private lenders and either of those two that I mentioned? I don't mind the higher interest rate because I plan on refinancing or paying it off within a year.

Anonymous · ‎01-19-2016

Hmm well I just went on an app spree a week or so ago to get a pre-approval for the 2013 Dodge Dart I bought. So I think I could help you out with this a little!

In my case I applied to banks like Chase, BOA, Wells Fargo, Ford Credit, Penfed, NASA, Cap 1 etc and they all denied me for various reasons. I felt really discouraged and ashamed because my CS on all of the apps was above 720. The only thing that kept me back was my $19,200/yr income since I am a full time college student. I than applied to DCU and a local bank which both said it was being reviewed by an underwriter. After a few more hours I got calls from both of these banks with pre approvals! DCU approved me for 2.72% with direct deposit, but only for half my income or $9600. The car I wanted was $10,800 out the door with a CPO warranty and 35k miles! They wouldn't budge one bit on that as it was their policy...That's where they lost me as a customer because I wanted that car as it was a steal! I than proceeded to call the other bank and got approved for the full amount as it was well under the LTV guidelines. The only downside to my local bank was that the lowest apr they could do was 4.05% and they said that I was even in their highest credit tier(TU 748). So my advice to you would be to apply for DCU and any other local credit union/bank in your area. Also it doesn't necessarily matter how many auto inquries you rack up as they should be coded to respresent one inquiry if they are within two weeks for the older FICO models and 30 days for the newer fico scoring models.

Anonymous · ‎01-20-2016

Have you tried RoadLoans? they seem fit for your situation.

Anonymous · ‎01-20-2016

Roadloans would approve him. But I would use that as a last resort as they have astronomical interest rates of 22% or more. They also generally require money down.

Anonymous · ‎01-20-2016

Could you pay cash? I think the high interest rate is going to really eat away at your money. I don't know how many years you want the loan for but threw in $10k loan at 10% APR over 5 years and got $2748 in interest, more than one quarter of the car cost. You'd need at 5% APR or lower, otherwise I feel like it wastes too much of your income.

sccredit · ‎01-21-2016

@Anonymous wrote:
He recommended I get a pre approval personally from a lending institution and that it would work better.

If a dealer F&I person is telling you to get outside financing he is nicely telling you that you cannot be approved. I'd try another dealer.

Can you prove your income through bank statements? What are your FICO scores (non Auto Enhanced)? Maybe a credi tunion like DCU is an option if they are high enough.