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What Do They Look At?

Contributor

What Do They Look At?

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~


Starting Score:575 TU, 577 EQ, 610 EX
Current Score:740 TU, 739 EQ, 750 EX
Goal Score:700+

~Anything Worth While, Takes Time~
I'm done taking shortcuts. I choose the long route. I'll still get there~
Take the FICO Fitness Challenge
Message 1 of 11
10 REPLIES
Valued Contributor

Re: What Do They Look At?

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!

  • Current: EQ FICO 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
  • Inquiries (12 Months): EQ 2 TU 1 EX 1 | Most Recent: 1/21/2014
Chase Freedom $9500
DCU Visa $10000
Capital One QS $2000
AMEX BCE $3000
Lowe's CC $8500
WalMart CC $3100
BOA Platinum $600
AMEX Gold NPSL
Message 2 of 11
Contributor

Re: What Do They Look At?

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%.


Starting Score:575 TU, 577 EQ, 610 EX
Current Score:740 TU, 739 EQ, 750 EX
Goal Score:700+

~Anything Worth While, Takes Time~
I'm done taking shortcuts. I choose the long route. I'll still get there~
Take the FICO Fitness Challenge
Message 3 of 11
Established Contributor

Re: What Do They Look At?

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

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Message 4 of 11
Established Contributor

Re: What Do They Look At?

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.


Starting Score: 500's
Current Score: 773 EQ(DCU), 757 TU(Barclay), 788 EX(Credit.com)
Goal Score:760 X 3


Take the myFICO Fitness Challenge

Message 5 of 11
Frequent Contributor

Re: What Do They Look At?

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. :-)
EQ FICO - 718 - 01/10/2012 EX FICO - 732 - 04/28/2012 (AMEX)

Cap1 Platinum (1000) Macy’s (2000) Chase Freedom (3000) Kohls (600) Best Buy (2700) Amex BCE (8200) Chase Sapphire (5000) CarCare1 (1600) Discover IT (4000)
Message 6 of 11
Frequent Contributor

Re: What Do They Look At?

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.
EQ FICO - 718 - 01/10/2012 EX FICO - 732 - 04/28/2012 (AMEX)

Cap1 Platinum (1000) Macy’s (2000) Chase Freedom (3000) Kohls (600) Best Buy (2700) Amex BCE (8200) Chase Sapphire (5000) CarCare1 (1600) Discover IT (4000)
Message 7 of 11
Contributor

Re: What Do They Look At?


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.


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! Smiley Wink


Starting Score:575 TU, 577 EQ, 610 EX
Current Score:740 TU, 739 EQ, 750 EX
Goal Score:700+

~Anything Worth While, Takes Time~
I'm done taking shortcuts. I choose the long route. I'll still get there~
Take the FICO Fitness Challenge
Message 8 of 11
Contributor

Re: What Do They Look At?


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. :-)

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. Smiley Happy


Starting Score:575 TU, 577 EQ, 610 EX
Current Score:740 TU, 739 EQ, 750 EX
Goal Score:700+

~Anything Worth While, Takes Time~
I'm done taking shortcuts. I choose the long route. I'll still get there~
Take the FICO Fitness Challenge
Message 9 of 11
Highlighted
Frequent Contributor

Re: What Do They Look At?


luvandlife wrote:

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. :-)

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. Smiley Happy


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! Smiley Wink

EQ FICO - 718 - 01/10/2012 EX FICO - 732 - 04/28/2012 (AMEX)

Cap1 Platinum (1000) Macy’s (2000) Chase Freedom (3000) Kohls (600) Best Buy (2700) Amex BCE (8200) Chase Sapphire (5000) CarCare1 (1600) Discover IT (4000)
Message 10 of 11