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Need auto loan, would I qualify for anything?

Valued Member

Need auto loan, would I qualify for anything?

Credit Score: 649 Equifax, 659 transunion
AAoA: 1yr
# of positive trade lines: 1
# of negative trade lines: 1
Income: 1550-1600/mo
Lenght of Employment: 2mo
Previous Loan Experience: none
Debt-to-Income (DTI): 800-900
Year of Car: prefer a 2010 Honda accord
Miles: 101000
Purchase/Refinance: purchase?
Requested loan term (XX Months): 48 or 60
Down payment amount: 1500
Co-borrower/Co-Signer: none
Other: I don't have any car models i love, i just want a regular 4dr sedan or midsize. No freaking cubes, bugs, trucks, suvs, or minivans. I also had to close my only credit card cause my wallet was stolen. I was denied a 5k loan with 1k down by my credit union recently and have nothing on my report, at least according to the dealership. If I had a car the income would rise to around 2000mo.
7 REPLIES
Valued Contributor

Re: Need auto loan, would I qualify for anything?

Welcome Putty to myFICO.

DTI is Debt to Income (monthly) Take all of the bills that show up on your credit report + rent and that may approximate your Debt / Your Gross (pre-tax) income.

Lenders like to see people have numbers below 40% with the new loan. $1,600 X .4 = 640 a month to pay the bills such as car payment, rent etc.

 

Your scores are in the range to get an auto loan. The issue will be getting a loan on a car that is 7-8 years old for an extended period of time.

Sounds like you have already been to the dealership checking out options.

Message 2 of 8
Valued Member

Re: Need auto loan, would I qualify for anything?

The 800-900 is the amount I spend monthly currently, just clarifying that. So I'm left with and 650 a month to play with. This particular dealership goes of what you can afford and I'm trying to get a loan to cover the particular vehicle I want, also cause it's cheapest to insure. Not trying to get no ultra new car cause it'll just be pricey to insure and pay for.
Message 3 of 8
Valued Contributor

Re: Need auto loan, would I qualify for anything?

Your income, combined with a lack of auto loan history and an older car will make financing a bit tough.   With a small loan many lenders don't want to take a chance because frankly there isn't much upside for them.  I would join Penfed and DCU, both are easy to join and frankly everyone should have them as a resource when they need to finance a car.  GIve them a shot at a loan and see what happens.  A dealer will get you financed but the rates will be terrible so try to avoid that.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Message 4 of 8
Valued Member

Re: Need auto loan, would I qualify for anything?

I apparently can't join penfed. I looked at all their requirements to join and I don't fit a single one. I'll look at dcu though.
Message 5 of 8
Valued Contributor

Re: Need auto loan, would I qualify for anything?


Putty wrote:
I apparently can't join penfed. I looked at all their requirements to join and I don't fit a single one. I'll look at dcu though.

Anyone can, you simply "join" one of the charity organizations like a military family association for a 10-15 dollar donation and then your qualified.  You can simply call Penfed and they can help you.  That is the same way you can join DCU.  Many credit unions have these methods of joining because it gives them the ability to expand their membership beyond the geographic boundries that many have had to stick with for years.  The banks hate this because it allows the credit unions who have huge tax advantages (non-profts) to poach their customers.  This is why credit unions will almost always beat the banks on interest and other charges.

 

There are many great credit unions out there and you likely have a local also to consider but Penfed and DCU are consistantly preffered here.  If your a veteran or have a family member who is I highly suggest NFCU as the credit union to do business with.  

 

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Message 6 of 8
Valued Member

Re: Need auto loan, would I qualify for anything?

Oh I thought those were for people in the organizations! I'll look again then. My dad's a veteran too, which I'm literally just now remembering, so I'll talk to him about using him for this stuff. But I'll try penfed again, dcu, and ncfu when I get home.
Message 7 of 8
Valued Member

Re: Need auto loan, would I qualify for anything?

Home now, asked my dad, was given the green light so I'm looking at NCFU, since he's a veteran and it's been recommended. I'll see what I can do from here and hopefully find something.

Message 8 of 8