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Obligatory Do I Quality Post

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MagnumLSU
Member

Obligatory Do I Quality Post

Hi,

 

Hoping to gleen some wisdom from everyone as to what to expect when applying.  Please see the details below.  Any input is appreciated:

 

Score:  CK FAKO - both at 738.  Discover IT is reporting 760.  Unknown Auto Enhanced Score.

 

AAoA: 6 years

 

# Positive:  3 

 

# Negative:  0

 

Income: Currently $85K, just promoted to $105K last Friday, so it will be a few weeks until that new income is documented.

 

Length of employment: 11yrs, with the last 6 months as a contractor in the same role (so it a new employer, technically)

 

Previous Loan Experience:  No auto loan experience ever.  Been perfectly paying student loans since 2006 -- 24K remaining.  Discover IT card with $8,400 CL, and a secured CU card with a $700 CL -- total CC utilization at %19.  

 

Monthly DTI: 3%  (I rent and keep debts as low as possible)

 

Car:  2017 -- F150, Jeep Unlimited, Nissan Pathfinder, Nissan Titan.  Everything I am looking at hovers around $40-$45K window sticker price. 

 

Miles: New, so...less than 100

 

Purchase!!

 

Loan Terms: Prefer a good credit union, 72 months, prob at 2-3% rate(?).  Would like note to be as close to low $400 as possible, but I understand I may have to go up to $550 for the cars I am interested in.

 

Down payment:. $4000

 

Other:   I have a 2008 dodge caliber in good condition, but high miles that I would consider trading in if I could get over $2,500 from the dealer.  If less than $2,500, I may just keep it as a back up vehicle or give it to my daughter...

 

 

Thank you for any guidance you could provide.

9 REPLIES 9
Discover2016
Valued Contributor

Re: Obligatory Do I Quality Post


@MagnumLSU wrote:

Hi,

 

Hoping to gleen some wisdom from everyone as to what to expect when applying.  Please see the details below.  Any input is appreciated:

 

Score:  CK FAKO - both at 738.  Discover IT is reporting 760.  Unknown Auto Enhanced Score.

 

AAoA: 6 years

 

# Positive:  3 

 

# Negative:  0

 

Income: Currently $85K, just promoted to $105K last Friday, so it will be a few weeks until that new income is documented.

 

Length of employment: 11yrs, with the last 6 months as a contractor in the same role (so it a new employer, technically)

 

Previous Loan Experience:  No auto loan experience ever.  Been perfectly paying student loans since 2006 -- 24K remaining.  Discover IT card with $8,400 CL, and a secured CU card with a $700 CL -- total CC utilization at %19.  

 

Monthly DTI: 3%  (I rent and keep debts as low as possible)

 

Car:  2017 -- F150, Jeep Unlimited, Nissan Pathfinder, Nissan Titan.  Everything I am looking at hovers around $40-$45K window sticker price. 

 

Miles: New, so...less than 100

 

Purchase!!

 

Loan Terms: Prefer a good credit union, 72 months, prob at 2-3% rate(?).  Would like note to be as close to low $400 as possible, but I understand I may have to go up to $550 for the cars I am interested in.

 

Down payment:. $4000

 

Other:   I have a 2008 dodge caliber in good condition, but high miles that I would consider trading in if I could get over $2,500 from the dealer.  If less than $2,500, I may just keep it as a back up vehicle or give it to my daughter...

 

 

Thank you for any guidance you could provide.


Yea I don't see any issue in you getting approved, even though you have no car loan experience. Since you have student loans, which are installment loans, they tend to raise your AUTO-FICOS.

Gardening until September 2025
Next app: Mortgage in September 2025
Message 2 of 10
Anonymous
Not applicable

Re: Obligatory Do I Quality Post

Definitely try a credit union.  I agree - you shouldnt have any problems getting approved.

Message 3 of 10
Anonymous
Not applicable

Re: Obligatory Do I Quality Post

Join Penfed and apply for pre-approval at the same time.  You will be fine.  I have found Penfed and NFCU to be better in terms of customer service than DCU but many here are happy with them also.  Any of those three will give you great rates.

Message 4 of 10
MagnumLSU
Member

Re: Obligatory Do I Quality Post

Update (what am I doing wrong?):

 

So I pulled my full 3B report Saturday evening, 2/4/17.  All of my scores, including auto enhanced scores, are great with the lowest score across the entire report being 754.  No lates, no derogs, no IQs.....a perfect report.  Oh, Utilization is at 19% as I want to grow my CL (which is working great with Discover IT CC BTW).

 

So I have a local CU (Western Federal CU, recently rebreanded to Unify CU)  that I have been with for over 9 years (checking, savings, and a small secured CC with a $700 limit).  I had a conversation with a teller in the branch who believed I could expect a rate between 2.2 and 2.5% with with around $50-$60K loan amount.  This is just what I want...a $60K approval at a rate around 2.5-ish.

 

I went online and applied for an auto loan with them and recieved a counter offer of $30K at a whopping 4.5% !!!  I provided further income verification and the representative (who was just as shocked as I was about the loan terms) tried to get the underwritter to re-evaluate it.  No go.  The underwritter insist on treating me as an "introductory loan" since I had no auto loan history on my report.

 

So I tried PenFed.....same net result.  $45K at 4.1%

 

Currently awaiting a second review by another local CU here in socal.  Their initial counteroffer was for $30K.

 

What am I doing wrong?  I don't use credit that I don't need, I don't ask for credit that I don't need.  I have great scores.  Income north of $85K/year -- about to be $105K in a few weeks.  I am willing to put $4K and can do up to $5,500 down if needed.

 

Are my expectations just not realistic?

Message 5 of 10
JGGM
Frequent Contributor

Re: Obligatory Do I Quality Post

I have seen this happen plenty of times. Typically it has to do with the fact that you've never borrowed money for a vehicle, so you're going from never financing a vehicle to wanting $60k(and probably around $1,000/month) Money talks, put more money down to help your chances. Rather than go thru all these small credit unions and stuff, I'd say pick the vehicle you want out and let the dealer get the loan bought. You can't write off business relationships dealers have with banks and credit unions. If they can't get the terms you want, you don't have to buy it. 

Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred

Message 6 of 10
EddieK
Established Contributor

Re: Obligatory Do I Quality Post


@Anonymous wrote:


Hey there! I can see that you have a good record. But, I cannot tell more about it because I was not the agent or the dealer. I suggest, you will see car dealers and ask some quotations for your desired car. I have found here the lease details for 2016 Nissan Pathfinder S, https://dsrleasing.com/car-listings/2016-nissan-pathfinder-s-lease-410-mo/. This might help you, if not you can browse other car listings. Also, they offer trade in service and you can inquire about it.


You've spammed this same website every time you post.  

Starting Scores:
1/19/14:

1/28/14:
2/12/14:
Current Scores:
7/10/19:
12/17/16:
9/05/17:
Message 7 of 10
Anonymous
Not applicable

Re: Obligatory Do I Quality Post


@MagnumLSU wrote:

Update (what am I doing wrong?):

 

So I pulled my full 3B report Saturday evening, 2/4/17.  All of my scores, including auto enhanced scores, are great with the lowest score across the entire report being 754.  No lates, no derogs, no IQs.....a perfect report.  Oh, Utilization is at 19% as I want to grow my CL (which is working great with Discover IT CC BTW).

 

So I have a local CU (Western Federal CU, recently rebreanded to Unify CU)  that I have been with for over 9 years (checking, savings, and a small secured CC with a $700 limit).  I had a conversation with a teller in the branch who believed I could expect a rate between 2.2 and 2.5% with with around $50-$60K loan amount.  This is just what I want...a $60K approval at a rate around 2.5-ish.

 

I went online and applied for an auto loan with them and recieved a counter offer of $30K at a whopping 4.5% !!!  I provided further income verification and the representative (who was just as shocked as I was about the loan terms) tried to get the underwritter to re-evaluate it.  No go.  The underwritter insist on treating me as an "introductory loan" since I had no auto loan history on my report.

 

So I tried PenFed.....same net result.  $45K at 4.1%

 

Currently awaiting a second review by another local CU here in socal.  Their initial counteroffer was for $30K.

 

What am I doing wrong?  I don't use credit that I don't need, I don't ask for credit that I don't need.  I have great scores.  Income north of $85K/year -- about to be $105K in a few weeks.  I am willing to put $4K and can do up to $5,500 down if needed.

 

Are my expectations just not realistic?


The issue is lack of recent installment loan experience - solve that by taking the PenFed offer, since they will at least give you the amount you need to finance, then look to refinance at 6 months with either NFCU or DCU

 

Good Luck!

Message 8 of 10
MagnumLSU
Member

Re: Obligatory Do I Quality Post

UPDATE:

 

Ok, done.  I just drove home in a 2017 Jeep Wrangler Unlimited.  After being persistent and negotiating back and forth with local small credit unions on lower total amounts, for only 60 months -- 2.54%, I was able to take that rate to the dealer, work directly with the finance manager (who at this dealership is also the inventory manager, and the business manager) to get a rate down to 3.29 on 72 months on a $37K loan.  Very happy how this all played out.  I like this better than rates in the 4-4.5% range for over 40K.

 

All told, I think I only ended up with 4 Hard Pulls on my report over the course of the whole week, and and still talking to my credit union, where they look to be able to give me an additional CC with a limit between 5-10K.  More to come on that next week.Smiley Wink

 

For now, I am enjoying having come from a messy divorce and scores as low as 535 about 4 years ago to scores in the upper 700s and a brand new Jeep.  Thanks again to everyone for their advice.

 

When I get time this week, I will pull together all the loan details and add it to the approval thread.

Message 9 of 10
Anonymous
Not applicable

Re: Obligatory Do I Quality Post

Nicely done!  *tips hat in respect*

Message 10 of 10
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