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UPDATE: DCU. What should I do?

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SwiftTone
Valued Contributor

UPDATE: DCU. What should I do?

Hello everyone. First time poster on the Auto Loans forum. Honestly, I didn't think I would be here so soon.

 

I recently came across a car that I want; 2008 VW GTI. Book on it is $11,500+ and the guy is asking $10,400. The only reason I'm even considering it is because it's a good deal!

 

Anyways, I have about $8500 in CC debt with a total line of $45k. I plan on paying it all off by the end of the month. My due dates are the 15th for the CCs with $5k balance and the 1st of the month for the rest of $3500.  My TU FICO is 715 from Discover and EQ FICO is 716 from myFICO. I had some issues back in 2007-2008 with a car loan where I has about 8 30/60 day lates. I think I've recovered from that fiasco for the most part.

 

The issue is that I would like to get financing for this car ASAP but I'm not sure if the banks will give me good terms based on my current profile, even though I'll be debt free (other than $7k in student loans) in 20 days. If I do get bad terms would I be able to refinance right away after my credit file gets updated with all the $0 balances? I've heard that hard inquiries within 30 days are considered as 1 inquiries, so should I just apply with a bunch of loans and hope for the best?

 

Thanks in advance!

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 1 of 10
9 REPLIES 9
Remember0
Valued Contributor

Re: What should I do?

You have a 719 EQ and you're worried you won't get good terms on an auto loan?

 

Haven't you heard? Auto loan underwriting is pretty much like the good old pre-2007 days for mortgages.

 

Anyways, what's your monthly pre-tax gross income and rent/mortgage? Also the aggregate minimum monthly payments on all the debt you have? Also is this a private party sale?

 

I don't think you have anything to worry about. I wouldn't apply to a bunch of places. I don't normally recommend this due to recent developments, BUT if your DTI makes sense and this is private party, I'd apply to DCU since you don't need a big loan anyways. I think you'd qualify for their 1.74% for 65 months deal.

Message 2 of 10
SwiftTone
Valued Contributor

Re: What should I do?


@Remember0 wrote:

You have a 719 EQ and you're worried you won't get good terms on an auto loan?

 

Haven't you heard? Auto loan underwriting is pretty much like the good old pre-2007 days for mortgages.

 

Anyways, what's your monthly pre-tax gross income and rent/mortgage? Also the aggregate minimum monthly payments on all the debt you have? Also is this a private party sale?

 

I don't think you have anything to worry about. I wouldn't apply to a bunch of places. I don't normally recommend this due to recent developments, BUT if your DTI makes sense and this is private party, I'd apply to DCU since you don't need a big loan anyways. I think you'd qualify for their 1.74% for 65 months deal.

I should of said best terms instead of good terms.

 

Well, I've read that the EQ FICO DCU uses can be significantly lower than what is provided here at myFICO. From what I gather, it can be arund 50 pts lower. Unfortunately if that were to be applied to me I think I would fall into a lower tier for interest rate. 

 

My W2 showed $31k last year but my base pay $29k or $2400 gross a mont. My rent is $550 and my minimum payments on my debt is around $100-$150 currently but will be $0 by the end of the month. 

 

What if I apply now with DCU and if I don't get the best terms reapply at the beginning of next month when my balances are updated?

 

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 3 of 10
Remember0
Valued Contributor

Re: What should I do?

I'd personally use 31k/12=2580 as the figure for gross pay. But even if you use 2400 it won't matter.

 

Yes, it can be lower. I mean I think they pull 04 while here the version they use is 08. That said, they only need a 675+, so you'd have to be a good 44 lower. I think 30+ off is pretty rare. To be safe you can just wait. BUT if you really have a good deal, it probably won't last that long tbh. THe car market tends to be pretty hot. Last used car I sold at a "good" price I got off of my hands in 5 days flat and I don't live in a very populated area.

 

Honestly, if I were you and it really is a good deal, I'd risk it now. But I do not know how DCU works with reapplications. You'd have to ask them to be honest.

 

For what its worth, DCU charges a fee to refi a DCU loan. So you may have to refi it away from DCU, and back to DCU, if you wanted to avoid the fee and get 1.25% if not approved now. By the way, for what it's worth, the next tier at DCU is like 3.74% I think. On a ~10k loan, the 2% difference won't be THAT large.

Message 4 of 10
SwiftTone
Valued Contributor

Re: What should I do?

Well, my score just dropped to EQ 709 via SW. I will hold off on applying until after I see the car and have it checked out. Once I apply with DCU how long does it usually take to push all the papers through assuming I have all the papers prepped beforehand. I think I read they will want my DL, SSN card, pay stubs(how long) and W2? Would things go faster if I apply in the branch?

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 5 of 10
09Lexie
Moderator Emerita

Re: What should I do?


@SwiftTone wrote:

Well, my score just dropped to EQ 709 via SW. I will hold off on applying until after I see the car and have it checked out. Once I apply with DCU how long does it usually take to push all the papers through assuming I have all the papers prepped beforehand. I think I read they will want my DL, SSN card, pay stubs(how long) and W2? Would things go faster if I apply in the branch?


Those who applied in branch stated 1 hp for membership and loan products.  Also, it would cut down any delay in requesting docs.  

Message 6 of 10
SwiftTone
Valued Contributor

Re: UPDATE! What should I do?

I just got back from a DCU branch.

 

I applied for a car loan first. They approved me for up to $20k for 1.24%/1.74%. Additionally offered me their VISA cards for $7500 credit line. I didn't finalize anything as I haven't even seen the car yet but will see the car tonight. They did say that the auto loan and the CC will be the same HP but the membership will be a seperate one.I didn't go ahead on the membership as I want to finalize on the car first, and I don't have any banking issues so there wouldn't be an issue there for membership. They check ChexSystems for membership by the way.

 

My SW alerted me  of EQ 709 on Wednesday. When they pulled my credit I was 709 as well.

 

EDIT: Forgot to add, DCU valued the car at  $13550 and will be able to approve a loan to 120% of the value or selling price whichever is lower.

 

EDIT 2: They only wanted my drivers license and most recent paystub.

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 7 of 10
09Lexie
Moderator Emerita

Re: UPDATE! What should I do?


@SwiftTone wrote:

I just got back from a DCU branch.

 

I applied for a car loan first. They approved me for up to $20k for 1.24%/1.74%. Additionally offered me their VISA cards for $7500 credit line. I didn't finalize anything as I haven't even seen the car yet but will see the car tonight. They did say that the auto loan and the CC will be the same HP but the membership will be a seperate one.I didn't go ahead on the membership as I want to finalize on the car first, and I don't have any banking issues so there wouldn't be an issue there for membership. They check ChexSystems for membership by the way.

 

My SW alerted me  of EQ 709 on Wednesday. When they pulled my credit I was 709 as well.

 

EDIT: Forgot to add, DCU valued the car at  $13550 and will be able to approve a loan to 120% of the value or selling price whichever is lower.

 

EDIT 2: They only wanted my drivers license and most recent paystub.


Ok.  So are you saying you might not get any car or you aren't sure if you are going to use DCU?

I'm asking because I don't understand why you didn't get the membership handled while you were at the branch.  Those that had issues with joining mentioned security questions too as a hiccup. 

Message 8 of 10
SwiftTone
Valued Contributor

Re: UPDATE! What should I do?


@09Lexie wrote:

@SwiftTone wrote:

I just got back from a DCU branch.

 

I applied for a car loan first. They approved me for up to $20k for 1.24%/1.74%. Additionally offered me their VISA cards for $7500 credit line. I didn't finalize anything as I haven't even seen the car yet but will see the car tonight. They did say that the auto loan and the CC will be the same HP but the membership will be a seperate one.I didn't go ahead on the membership as I want to finalize on the car first, and I don't have any banking issues so there wouldn't be an issue there for membership. They check ChexSystems for membership by the way.

 

My SW alerted me  of EQ 709 on Wednesday. When they pulled my credit I was 709 as well.

 

EDIT: Forgot to add, DCU valued the car at  $13550 and will be able to approve a loan to 120% of the value or selling price whichever is lower.

 

EDIT 2: They only wanted my drivers license and most recent paystub.


Ok.  So are you saying you might not get any car or you aren't sure if you are going to use DCU?

I'm asking because I don't understand why you didn't get the membership handled while you were at the branch.  Those that had issues with joining mentioned security questions too as a hiccup. 


I might not get any car if the one I'm looking at tonight falls through. I will def go through DCU if I do get a car.

 

I didn't get a membership because it'll be another HP for membership and since I'm not 100% on the car yet why take another HP for possibly nothing. I guess I should pray that there won't be any security issues. It shouldn't be hard to iron out issues if I'm at a branch.

 

What security issues were people having?

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 9 of 10
09Lexie
Moderator Emerita

Re: UPDATE! What should I do?


@SwiftTone wrote:

@09Lexie wrote:

@SwiftTone wrote:

I just got back from a DCU branch.

 

I applied for a car loan first. They approved me for up to $20k for 1.24%/1.74%. Additionally offered me their VISA cards for $7500 credit line. I didn't finalize anything as I haven't even seen the car yet but will see the car tonight. They did say that the auto loan and the CC will be the same HP but the membership will be a seperate one.I didn't go ahead on the membership as I want to finalize on the car first, and I don't have any banking issues so there wouldn't be an issue there for membership. They check ChexSystems for membership by the way.

 

My SW alerted me  of EQ 709 on Wednesday. When they pulled my credit I was 709 as well.

 

EDIT: Forgot to add, DCU valued the car at  $13550 and will be able to approve a loan to 120% of the value or selling price whichever is lower.

 

EDIT 2: They only wanted my drivers license and most recent paystub.


Ok.  So are you saying you might not get any car or you aren't sure if you are going to use DCU?

I'm asking because I don't understand why you didn't get the membership handled while you were at the branch.  Those that had issues with joining mentioned security questions too as a hiccup. 


I might not get any car if the one I'm looking at tonight falls through. I will def go through DCU if I do get a car.

 

I didn't get a membership because it'll be another HP for membership and since I'm not 100% on the car yet why take another HP for possibly nothing. I guess I should pray that there won't be any security issues. It shouldn't be hard to iron out issues if I'm at a branch.

What security issues were people having?


 

Gotcha!  

 

It it wasn't security issues, it was when applying for membership they have an id verification system that for some reason a few myFICO'ers had issues. It seemed those that did not 'pass' were online apps. It hasn't been a lot but enough to read about it on the forum.  

 

OTOH, there have been plenty that had no issues. 

Message 10 of 10
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