What Do They Look At?

[Anonymous]

Hello All,

I have been in the garden for about 9 months, waiting for things to drop off, card balances to reach zero, and scores to inprove... Finally I have arrived and I am ready to get a car loan.

My first app will be with my credit union, then I am considering Capital One Blank Check (depending on the outcome at the credit union)...

I have NO BADDIES, just 9 credit cards (8 with a zero balance and one with a small balance bringing my UTIL to 5%) No previous car loan history and unfortunately I have only been on my job for 3 months.

What do they look for when approving you for a car loan? Will me being on this new job for only 3 months ruin my chances of getting a loan with a low APR?

Is there any way around this?

Thanks For Your Replies~

[Jutz]

How old is your credit (AAoA)?

Debt to income is second to credit according to the CU I talked to today, so is the car you're shopping for in line with what you make?

With those scores, I think you'll do well at the CU as long as your DTI is fine.  Congrats on your credit building!

[Anonymous]

Thanks for the reply...

My AAoA is about 3 years 9 months. As per Credit Karma my DTI ratio is 8%.

I would like to purchase a 2010 Dodge Charger and my monthly income is only $2300 right now. But my rent is only $180 and I don't have any other obligations right now. All cards have zero balance except one with a $420 limit and $242 balance. That brings my utilization to 5%.

[TrishN]

with your AAOA and what you got. i think you have NP go to dealer and get approval

[guydiver]

I think you will have a decent chance with your CU.  Might have a problem with job history, just depends on their requirements.  They don't ususally have auto enhanced scores, so your lack of auto loan likely won't affect your score there.  You'll need check stubs.  I am a member of two credit unions.  Walked in, handed him my last six check stubs, my Fico EQ score(exact match for what he pulled).  Even took my on-line print out of  a paid off credit card statement that had not updated yet.  He looked at that and took the balance off for my DTI calculation.  Go with the CU first, then maybe Cap1 blank check if they have dealers you are interested in(not all will take it), but then you will have something to barter with because the dealer will want to get the financing and will have to beat the rate you walk in with.  Either way I think you have a good chance.  Good luck.

[mmduluth]

I Would Say you have a very good chance with your CU. I just got pre approved from Alliant Credit Union last night for up to 25k, 1.99% APR for up to 72 months with 10% down. My oldest account is 4 years old with an AAoA of 1.3 years. They pulled a 711 fico but I don't know what report they pulled. I'm looking at a loaded 2013 dodge dart limited. :-)

[mmduluth]

I should add I've been on my job for exactly 3 months, never had a loan except credit cards and I make $2400/month.

[Anonymous]

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@guydiver wrote:

I think you will have a decent chance with your CU.  Might have a problem with job history, just depends on their requirements.  They don't ususally have auto enhanced scores, so your lack of auto loan likely won't affect your score there.  You'll need check stubs.  I am a member of two credit unions.  Walked in, handed him my last six check stubs, my Fico EQ score(exact match for what he pulled).  Even took my on-line print out of  a paid off credit card statement that had not updated yet.  He looked at that and took the balance off for my DTI calculation.  Go with the CU first, then maybe Cap1 blank check if they have dealers you are interested in(not all will take it), but then you will have something to barter with because the dealer will want to get the financing and will have to beat the rate you walk in with.  Either way I think you have a good chance.  Good luck.

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Thank You for your input, you must've been reading my mind because I am concerned that 3 accounts that I have paid in full will not reflect by the time I go purchase and I didn't know what to do. Thanks for addressing that guydiver.

I feel like I have enough ammo and I am ready to wheel and deal!

[Anonymous]

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@mmduluth wrote:
I Would Say you have a very good chance with your CU. I just got pre approved from Alliant Credit Union last night for up to 25k, 1.99% APR for up to 72 months with 10% down. My oldest account is 4 years old with an AAoA of 1.3 years. They pulled a 711 fico but I don't know what report they pulled. I'm looking at a loaded 2013 dodge dart limited. :-)

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Thanks mmduluth, I appreciate your input. CONGRATS on your approval and good luck with that Dodge Dart. I am going to have to look it up on the internet, didn't know they redid them.

[mmduluth]

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@Anonymous wrote:

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@mmduluth wrote:
I Would Say you have a very good chance with your CU. I just got pre approved from Alliant Credit Union last night for up to 25k, 1.99% APR for up to 72 months with 10% down. My oldest account is 4 years old with an AAoA of 1.3 years. They pulled a 711 fico but I don't know what report they pulled. I'm looking at a loaded 2013 dodge dart limited. :-)

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Thanks mmduluth, I appreciate your input. CONGRATS on your approval and good luck with that Dodge Dart. I am going to have to look it up on the internet, didn't know they redid them.

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Yep. They look NOTHING like the old ones! They are affordable and have a lot of technology which I love. If my insurance wouldn't be so high, I would love to go for the Charger though!