This going to be my first auto loan and i'm pretty new to credit, been using cash for yearsss. The following is my case :
- Credit Score : NONE
- BOA secured card approved and on its way, 4000 limit
- US bank secured card approved and on its way - 4000 limit
- 4 Inquiries : Beside the 2 above, one denial from Cap one and one denial from Amazon store credit. All 4 of them are in Dec 2012. Already sent in the letter to dispute the 2 inquiries.
- 0 BAD
I plan to buy a car around 35K and I will put 5K-10K as downpayment.
My questions are :
1. Should I apply for auto loan now so I can use this auto loan as a part for my credit building.
2. Which lender should i go to if I apply now? I'm non-military.
3. My bank offered me 2k secured personal installment loan, should I take this? Is this going to help with my auto loan? I worry if the auto lender see I have open debt to pay, the chance of decline is higher.
4. If I have to wait for 6 months, should I join credit union now and establish relationship with them for my future auto loan? This is each CU will HP me twice. Or, I should join the CU after 6 months and apply for auto loan right away? this way I can save some HP.
5. The CU I have in mind and eligible are Alliant, DCU and Penfed. Can I join all of them or just choose one to join to save HP. Which of them is easy on auto loan?
If you can wait the six months (i.e. you don't need a car right now) I think you'll be in a better position.
I honestly have no idea on no file approvals. I'm sure you can find someone to finance you but I suspect the interest rate may not be pretty. Also I think you likely need to look in the 7-10K downpayment range.
As for the rest, personally I recommend doing the secured installment loan; this will help your classic FICO, and may even help your Auto-Enhanced FICO even more depending how personal loans are weighted which is pretty unknown.
DCU and Penfed are both pushing car loans; I don't know about Alliant. I think Penfed has more long term upside (by a large margin) over the other two CU's in question, and if you can get the auto loan there I would do that from a relationship perspective. I used DCU for my own refinanced auto loan and have no complaints, but they're sort of a one-trick-pony for me in that regard unless their mortgage product is any use for me. I don't have any idea on Penfed's approvals on auto loans but it's unquestionably the easiest path "in" to Penfed.
Thanks, any more inputs?
Why do not dispute inquiries? it will bring negative impacts to me?
You gave permissible purpose when you applied for the credit cards. They are valid inquiries. Despite the fact that it is illegal and unethical to dispute accurate information, you have not provided any police report for identity theft or other fraudulent use claim to the credit bureaus. The credit bureaus can see the reason for the inquiry. They are simply going to deny your dispute and direct you to the original creditor. Two inquiries that ended in a denial are not huge negative impacts anyway. You'd be better off spending your time on other efforts.