WTF Turned Down Why?!

[sekada]

Just applied at eloan (which also applies to roadloans) and capital one.

Scores (FICO, checked today) 647, 625, 616.  DTI between 17-20%.  Income $11,000 (eleven thousand) per month.  Homeowner for almost 6 years, no lates.  Good length credit history.  Have worked at same company for 13 years, in a (relatively) secure industry even now. 

In 1997, my car was repo'd and I declared Ch13.  That was discharged in 2004.  I have 4 lates showing on my recently paid-off car loan.  (It was actually only 2 lates, but I'm still wrangling with HSBC over that and don't want to wait any longer to buy a car).

I have a high credit-card ratio (about 80-90%). 

I figured I'd be in for 12% interest or so (which is what the current FICO guideline is for my credit scores), but why am I getting turned down altogether?

Will Ford Financing be a better option, given the current market conditions? 

[Anonymous]

Yes, Ford Credit might be a much better option. Given your credit file, you will easily qualify for their 6.9% Apr. I am only 20yo with 1/3 of your income and a much lower score and I got approved for 10.9%apr. Good luck to you.

[Anonymous]

Try a credit union see what they offer you. If you go with Ford, never be late....they are not forgiving!

[Anonymous]

Well, if you have had a repo and had lates on your car payments, your auto enhanced FICO will be a bitl ower than your regualr FICO.  It is probably in the upper 500's or so as they way auto loans higher than the standard FICO system. Although the old repo should be off by now I would think, the lates will drag down the AUTO FICO.

ALso, I am not sure if I understand, but if you are running 80-90% utilization in this current credit crunch/crisis you are throwing up a big red flag to them as well which may make them look at the lates even more.

That said, it is always better to walk into a dealer or CU/bank then to apply online.  The online standards are stricter as there is no room for play.  A good finance officer at a bank or dealer has some wiggel room to get an approval.

Also, how much were you looking to finance.  They are being alot stricter with down payments right now due to the credit problems.  That may be why as well if you were inputing putting zero down or something.

[cabarkeep]

That all depends on how much money you are putting down.... DVR your situation is probably much better than sekada's but i dont know as you didnt elaborate on your credit file your scores are pretty low looking at your sig...but scores arent everything...

with a prev bk in 04 along with a repo and with lates on the car loan ...no ford will not be in love with this deal ...especially if you have any derog after the bk ....they hate derog after bk and the banks in general do not like high credit card utilization .....

BUT on the good side you do have good income ...long term job ....pretty low dti ..so there is an upside I would say honestly it will depend on the deal structure you are trying to get financed ....probably something in the less than 15-18k range with a substantial down payment (the more down pmt the better your chances)...and also you should try to be financing somewhere less than 80-90% of the vehicles wholesale book

Sorry to bore you with shop talk but simply put .... less than stellar credit = down payment

I see it every day ...but banks are willing to give you a chance but it will require a little contribution on the buyers side ...hurry though its seeming like the banks are tightening up more and more every day in the car biz ..

Good luck!  Oh and yes I do work for a ford dealership so I am a little familiar with Ford Credit

PM me if you want with more specifics and i will try my best to help you out ....

[cabarkeep]

Bran you are both wrong and right ....

I would not try a credit union as I cant see any CU approving the loan...

You are right though about Ford they usually arent too lenient if you have been late with them or ever had anything repo'd but they do reward good payment history as well

[Anonymous]

I suggest not to go with eloan/roadloans anyway!  I just applied for a refinance only to find out that they are are owned by the same company that owns Drive Financial which is the company I'm trying to get away from now.  If I would have known that it was the same company, I would not have applied.  Now DH and I have added inquiries on our CR for nothing.

[sekada]

For some reason, I couldn't reply to this thread for several days -- so! 

First off, the bankruptcy repo was in 1997, not recently, and it's not showing up on my credit report.

Second, thanks for the advice, I financed it at the dealership and they got me a 7.9%, 63-month loan with BB&T, which is a great bank.  I put $2000 down on a $21k loan.  The repo/bankruptcy didn't come up, but the lates on my prior loan did push my auto-enhanced scores down a bit.  I'd say about 10 points. 

Thanks for the advice, everybody!

[ScoreBooster]

LTV is just as important as downpayment. After all, the car is the collateral..