Kind of approved for auto loan at CU, Recon?

[nada9188]

I applied for an auto loan yesterday. The car is 25K, I told them I would be putting 5K down-I asked for 20K with payments around $350/mo

My credit profile:

Income 26K

0 debt on all cards and loans 

No housing/rent payment

EX FICO 747

AAoA: 1.4

Oldest account: 3 years

9K total credit limits

I had one other car loan for 16,900 that was 12 months old, and is paid in full. 

They approved me for 18K, and will not go to 20K, however it is at 2.74%APR, which is very good. 

Given all of the factors, and that the payments for my last car were higher, why won't they give me more, other than my income? I understand the income is very low yet I can clearly afford more than $323/mo on a car payment. 

I can easily come up with 2K more to satisfy the difference, however it is principle. One other reason I want the loan to be 20K is to show higher amounts lended to me and paid back as agreed due to my credit file being a little thin. 

Any feedback is appreciated. 

[pizzadude]

So you are saying that you have no debt at all ?  No loans, no credit cards, no rent/mortgage or utilities ?   Perhaps the lender is using some minimum debt amout in their DTI calculations.

Have you asked them if they would extend the term of the loan, keeping the payments the same but increasing the amount borrowed ?

[nada9188]

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@pizzadude wrote:

So you are saying that you have no debt at all ?  No loans, no credit cards, no rent/mortgage or utilities ?   Perhaps the lender is using some minimum debt amout in their DTI calculations.

Have you asked them if they would extend the term of the loan, keeping the payments the same but increasing the amount borrowed ?

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As stated in my post the cards are paid to $0. You even suggested that in a different post of mine. I stated that there is 9K worth of CL. I had a car loan, the account is closed and paid to 0. 

I suppose I could ask them for more while extending the term. I just got the impression from them that this is the offer take it or leave it. Just doesn't make sense when in essense a car loan is secured, and the vehicle is worth much more than 20K.. 

Thank you for the response. 

[pizzadude]

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@nada9188 wrote:

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As stated in my post the cards are paid to $0. You even suggested that in a different post of mine. I stated that there is 9K worth of CL. I had a car loan, the account is closed and paid to 0. 

I suppose I could ask them for more while extending the term. I just got the impression from them that this is the offer take it or leave it. Just doesn't make sense when in essense a car loan is secured, and the vehicle is worth much more than 20K.. 

Thank you for the response. 

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Yeah, extended the term of the loan might be the solution ~ the bank/CU would get more interest and you could borrow more money.    Obviously you can always pay off the loan early like you did with your previous loan.

Good luck !  Let us know how it works out !

[Anonymous]

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@nada9188 wrote:

I applied for an auto loan yesterday. The car is 25K, I told them I would be putting 5K down-I asked for 20K with payments around $350/mo

My credit profile:

Income 26K

0 debt on all cards and loans 

No housing/rent payment

EX FICO 747

AAoA: 1.4

Oldest account: 3 years

9K total credit limits

I had one other car loan for 16,900 that was 12 months old, and is paid in full. 

They approved me for 18K, and will not go to 20K, however it is at 2.74%APR, which is very good. 

Given all of the factors, and that the payments for my last car were higher, why won't they give me more, other than my income? I understand the income is very low yet I can clearly afford more than $323/mo on a car payment. 

I can easily come up with 2K more to satisfy the difference, however it is principle. One other reason I want the loan to be 20K is to show higher amounts lended to me and paid back as agreed due to my credit file being a little thin. 

Any feedback is appreciated. 

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Good thinking. I wonder if someone can elaborate/explain the effect the loan amount has on credit file.

[pizzadude]

Installment loan amounts won't affect your FICO score, but they are looked at by lenders when approving you for a new loan.   Basically how much have you previiously borrowed and did you pay it as agreed.