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Question about PenFed - Auto Loan

Valued Member

Question about PenFed - Auto Loan

I am wondering what my chances of getting an auto loan from PenFed are.


My scores are as follows:


EX: 675

EQ: 665

TU: 655


I have 5 lates on a CC and a collections account from a year and eight months ago. Credit history of 24 years with average age of 5 years. My CC's are at 3% util and have about $600 per month in expenses with a $55,000 base (before bonus) salary.


I also have a willing co - signer with Fico sof mid to upper 700's.


My questions are: 


1. Can you apply with a co-signer from PenFed?


2. I see that PenFed offers a 4.75% rate for used auto loans. If answer to above question is yes, what do you see the rate I would be approved for? If answer to above question is no, what rate do you see me obtaining?


Anyone with credit similar to mine (or not) who has applied for an auto loan to PenFed or applied with a co-signer would be very much appreciated for responding.



Message 1 of 9

This is what I know about Penfed

I have no idea if Penfed allows a co-applicant, however, they are sticklers when it comes to approving you.  I was approved a little under a month ago and my Equifax is perfect and they made me sweat the yes.  I had to fax in proof of income as well and then they approved the loan.


I have 90 days to decide if I will go with the dealership or Penfed, but you never know until you actually apply. 


My advice would be to call them tomorrow and speak with a representative over the phone with your questions.  From what I understand they are so picky about approvals and that is why they can offer such low rates to customers.


Good luck and let us know how it turns out!!!



Use your credit wisely during these rough economic times!!!
Message 2 of 9

Re: Question about PenFed - Auto Loan

My used car auto loan was approved by PenFed with the following:


- EQ (which they pull) 672

- Credit util way above 3%

- Last collection item back in 2005

- More than 5 lates on CC, last of which occured 02/2004

- a bit more income (without needing a proof of income)


For the 4.75% rate you will need to apply online.  I was approved in less than 60 seconds.  I have been very impressed  PenFed from the start.  Picked up the loan check the very same day I picked up the car.  I even got another CC with them for rewards points and have transferred balances to the card (with 5.99% lifetime balance and no other restrictions)


I am a very happy owner of a 2007 Acura TL and would definitely recommend PenFed


Message 3 of 9
Valued Member

Re: Question about PenFed - Auto Loan

So I called and spoke to a representative from PenFed.


She said she couldn't really give me any details about what would be available without applying. She did (which we all already know) say they look at much more than just score.


She also informed me that they do accept auto loan applications with cosigners.


I will let you guys know more details when I go ahead and apply. I just want to make sure I can get my car sold before applying.

Message 4 of 9
Valued Member

Re: Question about PenFed - Auto Loan



A few questions:


  1. how long ago did you take this loan out (i.e. before things got really bad)?
  2. what credit limit did you get on the CC?
  3. where do you get the check? i'm not sure how that works.
  4. are positive they pull EQ? i confirmed this with her but it was kind in passing and it might have been an "uh huh, uh huh, uh huh" kind of thing to my questions. the reason i ask being that someone in another thread just said they pulled EX and just called to confirm that.


Message 5 of 9

Re: Question about PenFed - Auto Loan

1.  I applied online on 09/16/08, within a few minutes of becoming a member (I actually had to join an association that was affiliated with PenFed in order to become a member).  After I applied, I went to my account information screen and was told that loan was "Approved" pending VIN information to complete the loan process


2.  When I went to pick up the loan check, one of the representative asked me if I wanted to apply for the Cash Reward Card.  I was pretty hesitant because I was amazed that my auto loan was approved (considering I have had derog information in the past).  I said what the heck.  Was approved for a Platinum card with a $ 5,000 CL.


3.  I actually went to the PenFed location here in Springfield, VA.  I also spoke with a representative with PenFed and they said they could send some type of confirmation to the Dealer once they get all the necessary information off the "Buyer Sheet/Invoice" and process the loan application.


4.  I am positive they pulled EQ (I am looking at the inquiries that hit my report on 09/16).  One good thing about the loan app and applying for the credit card, was they did not have to pull another report because they already had the original report score.  The score they pulled was 672.


I hope that helps.  Good luck


Hope to hit the 700 club in the next 6 months. 



Message Edited by Rdennis on 12-11-2008 02:41 PM
Message 6 of 9
Valued Member

Re: Question about PenFed - Auto Loan

So I applied for a PenFed Auto Loan just now and received the "Your Loan is Under Review" message. I hope this does not mean that I will be denied. The CSR told me before I applied they will most likely ask for proof of income due to being a first time customer so hopefully this is what the under review message means.


Hopefully applying with a co-signer in the mid 700s and an annual salary of $180,000 helps my chances. I will let you guys know how it goes.

Message 7 of 9
Valued Member

Re: Question about PenFed - Auto Loan

I just received word that I was approved for the $17,000 I applied for. They did, in fact, pull Equifax.


Just for reference, I believe my score was about 692 when I applied. I stated earlier that it was 665 and assumed that was correct because I had not received a ScoreWatch alert in over a month. During that month I paid off all CC balances to zero with the exception of one to report a balance at 3%. I just figured I hadn't seen any points but I received a ScoreWatch alert when PenFed pulled my EQ and the updated score was 682 which leads me to believe I took a 10 pt hit from 692 after the inquiry surfaced. Who really knows though?


I, myself, have an income of $55,000 with only about $10,000 in school loans showing on my credit report. I also had a co-signer with a FICO of 742 and an income of $185,000. They only asked for my proof of income, though, but informed me I was approved with verification of income.


I just wanted to give a clear picture of this information for anyone to use as a reference in a situation similar to mine.


Thanks for all of your help, guys. I was in the low 600's when I started working on this earlier this year and am sure I wouldn't have gotten approved without all of you.


I'll be picking up my 2007 Audit A4 Quattro Monday of next week!

Message 8 of 9

Re: Question about PenFed - Auto Loan

Rengler that is awesome news.  Its a great feeling when everything goes through and you are just waiting for the keys to be given to you.


Congrats and happy driving.

Message 9 of 9