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Thoughts on approval for auto loan

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danev
New Member

Thoughts on approval for auto loan

I am planning on purchasing a used 2009 Honda Pilot touring witn navigation in a month or 2 (about $30,000) or so but I am concerned about potential lender(s) approval since my credit is not great. I have a  Transunion fico credit score of 677 and an Equifax Fico Credit score of 670. My experian score at Experian.com is 682 (I guess this is not Fico). I just finished paying for a 60-month car loan last month (Dec 2011) and need a 2nd car for my family.  I make about $85000 per year and I have a credit card balances of $16500 (utilizing 88% of my credit limit but just multiplied my effort in paying down the credit cards which will take at least 2 years to zero out). I also did a short sale my home about 2 years ago with seven120 days past due payments reported (Bank could only take a short sale seriously with some late payments even though I would paid late anyway since I was out of a job at the time). I have never had any late payments, collections or bankrupcies on all my other 13 accounts on my credit profile and have a 7 year credit history.  I would really appreciate suggestions from experienced borrowers on my chances of approval with little ($1000 or $2000) or no downpayment on a $30,000 used auto loan.

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Thoughts on approval for auto loan

IMO tough chance but somone might have an experience like this and may be they can help you to do the needful in these couple of months.

Message 2 of 8
pizzadude
Credit Mentor

Re: Thoughts on approval for auto loan

 

You said that you have a completely paid Auto loan, that should help boost your Auto enhanced FICO score, which is what most car dealers will use.   ( Assuming that there are no late payments )

 

What does your DTI look like right now ?  This will be a factor in your approval as well.

 

Who financed your previous vehicle loan, and can you get pre~approved through them ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 3 of 8
danev
New Member

Re: Thoughts on approval for auto loan

I never had any late payments on my previous auto loan and any other of my accounts (credit cards, line of credit, personal installment loan and utility bills) on my credit profile for that matter except my shortsale mortgage lates from 2 years ago. My Debt-to-Income ratio based on my minimum monthly obligations on my credit profile and current income is less than 15% ( of course this is actually higher if I include my other monthly obligations that don't show up on my credit). My previous loan was financed by my credit union in Maryland but I moved to the Midwest since 3 years ago so cannot physically go to my credit union in MD to discuss with them except via telephone. I was thinking of applying for the capital one blank check 1st prior to the credit union (Denied me via telephone in April 2011 when my equifax score as 619 as against the current 670) or dealership option(s) since I have come across some positive reviews in this forum. I am also hoping that my credit scores might increase by some small but helpful amount in about a month or 2 when I am ready to apply since I intend to drop my revolving debt utilization rate to less than 80% from the current 88%

Message 4 of 8
pizzadude
Credit Mentor

Re: Thoughts on approval for auto loan

 

Your FICO score should continue to improve as your %util decreases, assuming that no other negatives pop up, so that is good news.

 

I would recommend getting pre~approved before going to the dealer so that you can get the best deal on financing.   Maybe you can establish a relationship with a local CU over the next month and work with them on your auto financing ?

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 8
danev
New Member

Re: Thoughts on approval for auto loan

Thanks a lot pizzadude. I appreciate your responses.

Message 6 of 8
pizzadude
Credit Mentor

Re: Thoughts on approval for auto loan

 

Good luck and keep us posted on your success !!

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 7 of 8
teenastie
Established Contributor

Re: Thoughts on approval for auto loan

Your credit scores seems to net you a auto loan qualification. Although you have never been late etc. The short sale on your credit report should show as a debt settled for less than the original amount. That is a serious negative factor. I suggest contacting the CU again before letting a dealer shop you. You may have to put down 20% of the auto (roughly 6K) but I think it could be done assuming your DTI is not through the roof!



Message 8 of 8
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