Meh...Looking for some insight here.

[SamsungHDTV]

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@Anonymous wrote:

Update for those who were curious:

Got my denial letter yesterday.

Only reason listed was "Insufficient credit history", which was exactly what I figured. Not to mention the score that Cap One was showing on the letter matched NONE of my scores from any of my credit reports pulled from this site. Also not a surprise.

This whole process is rather infuriating...if 5 years worth of good credit isn't enough then I'm not sure when it will ever be.

If I am expected to take a high interest rate loan the first time around to "prove myself" then forget it.

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Insufficient credit history = no auto loan experience.

Price shop the car you want. Haggle like a madman. I suggest you do it online. See the sticky if you need an example. Shop for your loan separately.

Most big banks and maybe credit unions will approve you, but only for 20K or less. I'm assuming you're applying for more. Apply with the finance manager at the dealership. They have indirect channels and a captive lender that do not have this guideline. 

When you talk to the finance guy, say you're pre-approved for a good rate and will give him a chance to beat it. However, you don't want to tell him your rate, you just want the best he can offer. See what happens.

You need a car. What do you have to lose. Another inq?

[SamsungHDTV]

I'm curious, how much are you applying for?

[Anonymous]

That is the thing...I haven't even gotten that far into the process yet.

The online App for Cap-one denied me right away before even requesting a sepecific amount and the credit union place just ran my SS over the phone.

No specifics were discussed. That is sort of where I expected proof of income and all of that stuff to come into play.

The initial 8.4% rate they quoted me killed any possibility of me going any further with them.

The car I have my eye on is $21,535.

I'm sure I can get approved somewhere, it just looks like it is going to require me swallowing my pride and having a co-signer, as much as I would rather not. I have a family member who is willing, but only if they give me a much better rate...having a co-signer should help with that, correct?

[SamsungHDTV]

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@Anonymous wrote:

That is the thing...I haven't even gotten that far into the process yet.

The online App for Cap-one denied me right away before even requesting a sepecific amount and the credit union place just ran my SS over the phone.

No specifics were discussed. That is sort of where I expected proof of income and all of that stuff to come into play.

The initial 8.4% rate they quoted me killed any possibility of me going any further with them.

The car I have my eye on is $21,535.

I'm sure I can get approved somewhere, it just looks like it is going to require me swallowing my pride and having a co-signer, as much as I would rather not. I have a family member who is willing, but only if they give me a much better rate...having a co-signer should help with that, correct?

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Honestly, I don't think you need a co-signer. A co-signer will help, but i really think you can do it without one.

How much is your gross income? Do you know your DTI?

Did you apply for $21,535? Are you willing to put a down payment? If so, how much?

[Anonymous]

Gross income is 40,000

Wife is somewhere around 22,000'ish but she is being left off applying for the loan due to having zero credit at all.

DTI is 3%

I haven't applied for any exact amount yet. Just applied with Cap-one and in a general sense over the phone with one CU.

I'd like to skirt around a down payment if I could but it all depends at this point.

I'm planning on talking to another CU next week.

[SamsungHDTV]

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@Anonymous wrote:

Gross income is 40,000

Wife is somewhere around 22,000'ish but she is being left off applying for the loan due to having zero credit at all.

DTI is 3%

I haven't applied for any exact amount yet. Just applied with Cap-one and in a general sense over the phone with one CU.

I'd like to skirt around a down payment if I could but it all depends at this point.

I'm planning on talking to another CU next week.

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Here is the magic question you need to ask all lenders: What is the loan amount threshold for borrowers without auto loan experience. This question is best asked directly to an underwriter. You will likely get a personal banker or loan officer that will input your application. The banker might know, but the underwriter will know for sure. If they say the max loan amount for first time borrowers is $20K, then you need to make a down payment for the difference.

However, I think you stand a good chance applying through indirect financing and/or captive financing. You should really start building your wife's credit.

[Dj4Money]

 Why haven't you tried -

 Auto Credit Express, Credit Acceptance, Santander/Road Loans, Westlake Finacial or CPS?

 All do new car loans and usually people with problem credit. 

 Road Loans doesn't automatically mean high interest rates, just like applying to Capital One doesn't mean one either. 

 Are you a first time buyer? 

[Anonymous]

Just a brief update...after some consideration I decided to pull the trigger and apply to join DCU with a money market account.

After submitting the initial online app, it informed me that I was pre-approved for a 25,000 auto loan.

I am cautiosly optomistic but won't get my hopes up until I hear back with a definite answer.

Is this at least a step in the right direction?

Any instances of a false "pre-approval" with DCU?

[Anonymous]

DCU pre-approvals are solid - just a bit of back-and-forth with them on paperwork so be patient and thoroughly communicate with them (nothing intense, just that they don't seem to capture everything they need on the first pass).  If all else fails, pick up the phone and call them - they're personable enough.

[Anonymous]

Well, it is official.

I am a member of DCU and my loan was approved.

I am honestly shocked at how easy it was. I had braced myself for an annoying back and forth with DCU after reading things about their approval process and the documents they need to have faxed and such but I only had to send a copy of my Drivers license and everything was basically done overnight.

Now I just have to settle on a vehicle.

Thanks for all of the advice everyone!