Met with my CU today and asked all my questions

[Cloudlb]

I didn't want to actually apply today, because the car I want (Nissan Juke) is just now trickling in to dealers, and I'm not sure exactly when there will be a decent selection and reasonable deal.  But I was anxious, and wanted a face-to-face meeting to ask all my questions.  So:

I introduced myself and explained that I did not want to apply or for them to pull my credit today; that this was just a fact finding session to assess my chances.   I brought my myFICO TU and EQ reports, as well as my Experian credit report, and my pay stubs.  I'm glad I did that, because the loan officer was very interested in seeing them.  My scores are good:  TU 766; EQ 745. Based on the scores, and the fact that I'm planning a $10,000 cash down payment, she said I'd qualify for a 48 or 60 month loan at 2.99%   Woo!

My major problem is that my credit is thin-I only have one newish cc  and one older auto loan successfully paid.  She said the age of my previous auto loan would hinder me, but my loan to value ratio (with large cash down payment) was a plus.  No negatives, but she suggested I consider a small secured loan.  I don't know that I need to do this--pay 3% to borrow money from myself.  Do you think this is a good idea?  I asked her, "if I applied today, do you think I'd be turned down?"  She said no. 

Other answers:  They pull Equifax and use the FICO enhanced score; which I can find out at the time of application.  I can adjust the due date after my first payment.  There are no application fees.   The best way to prepay is to pay biweekly (which I won't be able to do). There are no penalties for prepaying, but if you pay an extra amount, you have to tell them specifically to apply it to the principal. 

I know this isn't a sure thing, but I'm majorly relieved.  There is nothing worse than the feeling of being rejected--you feel so worthless.  I've worked hard for this. 

Now all I need is my car!

[haulingthescoreup]

Well, having another open installment loan (since your other auto loan is paid off) might give you a few points, but I'm with you, I don't know if it's worth it. However, even if there isn't much score effect, it might cheer up the lender, which is a different story.

If you decided to do the loan, find out if if would be simple interest. If so, you could promptly turn around and pay back 90% of it, dribbling out the remainder, thus minimizing interest expense.

If anything, your scores would probably benefit from having a second CC instead. Many people don't even see a score drop when they open their second card, depending on what happens with their AAoA, because the scoring formula "likes" to see several open and healthy revolving accounts. (Revolving credit is riskier than installment credit, thus it is rewarded --or punished --more in scoring.)

But again, getting credit just for the sake of getting credit and possibly pleasing the FICO scoring gods doesn't really make sense. If she liked the looks of your credit now, I think I'd be tempted to cross my fingers and hope it still holds at application time. OTOH, if you really thought that you might wind up with a worse deal, thus costing you more money, it would make sense to broaden your credit a bit.

How's your crystal ball skills?

Oh, btw, in case she didn't realize it, the FICO EQ score here is known as Beacon 5.0 to the lending industry. Of course, as she said, they'll pull an auto-enhanced version, but in case you talk to her again, you might mention that. It cheers them up.

[Cloudlb]

I'm all for cheering the lenders (and me!) up.  I think I'll just let the status be quo.  If I knew for certain that I would be buying, say, in December then I might try to get another credit line, but it's possible I could buy tomorrow (my dealer told me they are getting one (1!) in tomorrow).  I think I'll just concentrate on saving a bit more money for a downpayment, and getting my present car readty sell, to increase my loan to value ratio.  Or is that decrease . . .

[Anonymous]

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@Cloudlb wrote:

I'm all for cheering the lenders (and me!) up.  I think I'll just let the status be quo.  If I knew for certain that I would be buying, say, in December then I might try to get another credit line, but it's possible I could buy tomorrow (my dealer told me they are getting one (1!) in tomorrow).  I think I'll just concentrate on saving a bit more money for a downpayment, and getting my present car readty sell, to increase my loan to value ratio.  Or is that decrease . . .

---

That is so funny - me and my gf actually just drove the juke like 3 days ago... she is thinking about trading in her car for that (not anymore) - its kinda small - passenger seats in the back and also cargo space is immensely small - it wont be a good family car.

Anyway, to the financing - I dont know which CU you are applying to but I am with Hauling on this one. Here is the thing though, I work for a CU and usually with your scores and almost half the downpayment - is normally golden - I would say you would be okay and probably get their best rates but then again I am just speculating. How long have you been with them?

The juke is a new car - most dealers have only like a couple for showing and test driving so that means there is probably not going to be there any specials on those for a while - I would recommend waiting if you could - even atleast until dealers have them in plenty - but to be honest - thanksgiving is just around the corner and normally black friday is the best time to buy cars - talk about promos and dealers willing to negotiate!!!!

[Cloudlb]

Oh, you lucky you got to drive one!  I'm going to see one tomorrow--our dealer has ONE coming in. I'll probably wait for a month or two until there's a bit more availabilty, but may jump on it if I see the exact color/trim around. I've been car shopping since April and need to move on to another obsession.   I'm a solo (kids all flown) so I think it's a perfect car for me.

I think I should be fine with the CU--I've been with them uh . . . over 5 years I'm sure, but don't remember exactly. 

[Anonymous]

Please let me know what you thought about it. Also, while test driving, make sure you put the car under the sport mode - this will kick the turbo in and it comes all peppy and fast. I am a huge car lover. Well, if you dont have kids then yeah its a good car but still that cargo space is small - if you decide to drive it long dist to like a vacation or something then there may not be enough space... anyway - yeah jukes should be available in plenty a month or two down...

hmmm 5 years - thats good time to establish your r/ship with them - as long as you have been utilizing their accounts (savings, direct deposit etc etc) then I think with your scores and downpayment you should be golden.

Good luck...

[Cloudlb]

thanks; I'll let you know what happens

[Cloudlb]

Love the car--it's a perfect car for me, and I've been researching and shopping for months.  Not a family car, no, but fun to drive, zippy, enough room, decent fuel economy, loaded with options at a nice price, and a big change from the anonymous silver box I've been driving for the past 9 years.  A very forward-looking car with all the new safety and tech features.  A bit of a risk, since it's a new model, but I'm willing to take it. 

[Anonymous]

i had to google it as i've never heard of it !!!

http://www.nissanusa.com/juke/

looks like a micra on steroids

did you buy one yet ??

[Cloudlb]

  Lots of people think it's ugly--that's fine with me.  (More for me!)  Have not bought one yet;   they're in kinda short supply, so I'm waiting in order to have a better selection and better deal--probably in December.. Makes timing and grouping the credit inquiries tricky.