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Qualifications for Auto-Loan

Contributor

Qualifications for Auto-Loan

Hello,

I opened an account with the credit union in my city today. They have some pretty good incentives such as a credit card that is serviced by them with no AF and decent rates, and also great rates on auto and mortgage loans. Today I signed up with the branch manager. They pulled my equifax score for their information (sucks because it's my worst score). She told me that it's 627 which is right around what this site told me. A little lower but it was also a few months ago. I asked about the loan for a car at around 10-12k and she said my interest rate at this present day would be 7.99 if i were approved. My question is, what would determine whether or not I was approved? I'm not looking to purchase a car right now but I will be in the next year or so. I've had my job for about 1.5 years. Any info. is appreciated. Smiley Happy

Thanks,
5 REPLIES
Valued Contributor

Re: Qualifications for Auto-Loan

The CU probably has a rate sheet. Assuming you don't have a lot of recent baddies on your report then you'd qualify based on where your score falls on their rate sheet.

I'm guessing the 7.99% is a rate for a used car with a long repayment term.....
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Frequent Contributor

Re: Qualifications for Auto-Loan

just  keep your scores up and you will get a better deal when you are ready for the purchase.
Regular Contributor

Re: Qualifications for Auto-Loan

The lady at my CU (North West Federal) said that it doesn't matter what your score is as long as I have good credit. Everybody gets the same interest rate if they have good credit. Doesn't really make sense to me......
Contributor

Re: Qualifications for Auto-Loan

Vesper, my credit union said the same thing.  Everyone gets the same rate as long as you are approved.  My cu said they don't even really look at the credit score just that you are paying your current bills on time and don't have lots of derogs.
Regular Contributor

Re: Qualifications for Auto-Loan

Yeah, mine too! I forgot that they said that. It was kindof a relief!