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New Member
Posts: 3
Registered: ‎05-08-2008
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Score qualifies but history does not

[ Edited ]

I am in the process of buying a new car and when the dealership pulled my scores they said I would qualify for their top teir rate at 3%.  I asked them to run the numbers and see what my note would be... they came back and said that because I had a couple of 30 day lates on my previous auto loan from 2009 that they could only offer me a rate of 13%!!!!!! They said my scores were EX 670 TU 695.  I asked the finance manager to reconsider but they won't budge.  Should I try another dealership or will this be the case anywhere?

Valued Contributor
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Registered: ‎09-14-2012
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Re: Score qualifies but history does not

Absolutely try another dealer

Never take credit personally

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Valued Contributor
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Re: Score qualifies but history does not


sccredit wrote:

Absolutely try another dealer


AND CREDIT UNIONS

Never take credit personally

Amex BCP $24,900; Chase Sapphire Preferred $24,200; Chase Marriott $20,000; Discover It $12,500; Chase Ink Cash $15,000; Chase Slate $13,500; Citi TYP $12,900; Capital One Venture $15,000; Amex SPG Biz $3,000; DCU Visa $10,000; Logix FCU $15,000; Citi Home Depot $8,800; Lowes $8,000; Care Credit $6,000; Penfed Platinum Sig $16,000; Barclay Arrival Plus WEMC $15,000; US Bank PLOC Overdraft $1,500; US Bank Perks+ Visa Signature $8,600; US Bank Edge Rewards Business $10,000; PenFed PLOC $5,000

Valued Member
Posts: 81
Registered: ‎09-01-2013
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Re: Score qualifies but history does not

To me it sounds like they are trying to rate hike you. Two 30 day lates from 3+ years ago will not push you over a 10% interest rate (yes, even considering your score(s)).

 

Are you willing to get pre-approved for an auto loan? Although it will cost you more inquiries, it greatly favors you in negotiating at the F&I office.

 

 


sccredit wrote:

AND CREDIT UNIONS


+ on Credit Unions

 

Some banks that could have some favorable rates: PNC, Bank of America, Capital One

"Neither a Borrower Nor a Lender Be"
Moderator Emeritus
Posts: 11,154
Registered: ‎12-30-2011
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Re: Score qualifies but history does not

[ Edited ]

Poki wrote:

To me it sounds like they are trying to rate hike you. Two 30 day lates from 3+ years ago will not push you over a 10% interest rate (yes, even considering your score(s)).

 

Are you willing to get pre-approved for an auto loan? Although it will cost you more inquiries, it greatly favors you in negotiating at the F&I office.

 

 


sccredit wrote:

AND CREDIT UNIONS


+ on Credit Unions

 

Some banks that could have some favorable rates: PNC, Bank of America, Capital One


Inquiries if they are clusted for auto loans count as one.  It's expected by every underwriter that there will be several inquiries shopping for an auto loan or for a mortgage.  Absolutely go check with a couple other lenders and get a good rate as I agree with the others, the one you got is pretty uncompetitive.

 

FWIW I always recommend finding out from a couple of lenders what they will offer before I walk into the dealership.  Not only does it tell you what you can expect, but also gives you some idea on the reliability of the dealership too.  When I bought my last car, it was priceless to see the salesperson tiptoe in with a 19.35% APR, but when the rest of the offers I'd gotten were in the 20-22% range, I simply smiled and signed because it was exactly what I was expecting.

 

That's not the case here OP, go talk to someone else as it doesn't sound like your credit report is bad at all, and this is one area where the FICO algorithm is designed with consumers being the priority: take advantage of that and rate shop.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Frequent Contributor
Posts: 436
Registered: ‎03-19-2010
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Re: Score qualifies but history does not

They were giving you the run around. I had 2 30 late day in '09 from a prior auto loan when i got my car earlier this year and i got 3.9% for 72 months. Go somewhere else.

New Member
Posts: 3
Registered: ‎05-08-2008
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Re: Score qualifies but history does not

Thank you all for the replies.  I will stop by the credit union this afternoon and see what they say.  I know my scores aren't amazing, but I don't think they are terrible.  Fingers crossed :smileyhappy:

KCK
New Member
Posts: 12
Registered: ‎07-24-2013
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Re: Score qualifies but history does not

Try the dealer and set your limit, if they can't reach it be willing to walk away

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