Will I get approved?

[ITgearhead1]

No auto loan history (same car for 7 years from high school), 47% credit utilization at the moment (down from much higher), perfect payment history (no past issues), AAoA maybe 3-4 years with the oldest card back from early 08, no house, 45-50K in student loans that just entered repayment. I really need to get into another car and submitted a preapproval application through US Bank who I've been with for almost 7 years but am really nervous that they're gonna reject me. I know I didn't get an automatic preapproval cause of my DTI. What do you guys think? I spent a good amount of time browsing the approval thread and noticed some even more mediocre scores than whatever mine probably is as well as bad credit history. According to my Discover FICO (pre $2500 CLI, total available now at 17.9k) I'm at 670.

Anyone been in similar circumstances? What do you guys think? I'm hoping to get 'just' 20k to get me going with a somewhat decent rate. Is this possible?

[Remember0]

What's your income, rent, and aggregate minimum payments across all the cards?

I don't know much about US Bank, but I know at a place like DCU (assuming your EQ FICO is close to your TU FICO), you'd qualify for ~4-5% for 65 months. I think you'll be approved to be honest. If not US Bank, a place like DCU WILL finance you.

Also what car are you buying?

[ITgearhead1]

---

@Remember0 wrote:

What's your income, rent, and aggregate minimum payments across all the cards?

I don't know much about US Bank, but I know at a place like DCU (assuming your EQ FICO is close to your TU FICO), you'd qualify for ~4-5% for 65 months. I think you'll be approved to be honest. If not US Bank, a place like DCU WILL finance you.

Also what car are you buying?

---

Hey, my income is about 40k and I do not pay rent currently moved back home after college and they're just happy to have me back.  

I've been doing some shifting around cause of a BT from my US Bank card to my Discover cause of a 0% offer so it's kind of hard for me to say what it will be. At most maybe $250?  I don't know what my loan payments will be yet either because there were just so many and I'm waiting for a consolidation to complete. 

Are you referring to Digital Federal CU?  I would be satisfied with 4-5% to start. I've been aggressively tackling my credit cards since the beginning of the year to much success and I feel like I could do the same on a car payment - I would be paying it off hopefully within two years.

I'm a pretty big car enthusiast and I told myself I would buy myself a car after I graduated. Now that I'm at that point, I'd really like to buy a BMW M3.  Currently looking at several '06's. I read something about loans only being allowed for a certain age of car - is this true?

[ITgearhead1]

So I just took your advice and went and applied a DCU. I wasn't sure on the amount, and put undecided for the vehicle. I got an instant response and qualified for $24k at 1.74%! 

[Remember0]

Awesome news, congrats! What score did they pull? Has to be above 675... They'll send you a letter sometime soon.

To answer your question, yes banks have different limits as to age of cars. DCU's is like the loan has to be paid off before your car is 12? years old. But they don't uniformly enforce it if they view you as strong enough/your car as close enough. I don't think you'll have any issues with a '06 with DCU. They may make you take a 4.5 yr loan or 5 yrs instead of 65 months, but don't mention anything to them unless they tell you it's a problem. This won't be an issue for you so don't worry/bother asking about it.

Just one caution: be careful on older M cars. Off hand, I know they can have higher repair expenses, something you need to make sure you are prepared for. Also be sure to negotiate the price well (see my thread on Financing, Leasing or refi a car...the buying stuff is in the first post). Harder on used cars, but I think you'll will still get better results if you play off 2 internet salesmen of 2 similar cars. Heck more than 2 is better...the more you make compete the better the price.

If you want to know what the dealership paid for the car, if you have a friend who's a dealer get him to look up Manheim MMR for you. Otherwise, it's typically around KBB Very Good condition trade-in value. Make sure there's room for the dealer to profit, but you generally shouldn't pay KBB Retail prices imo. PM me if you want more help on the car you're looking at.

[ITgearhead1]

---

@Remember0 wrote:

Awesome news, congrats! What score did they pull? Has to be above 675... They'll send you a letter sometime soon.

To answer your question, yes banks have different limits as to age of cars. DCU's is like the loan has to be paid off before your car is 12? years old. But they don't uniformly enforce it if they view you as strong enough/your car as close enough. I don't think you'll have any issues with a '06 with DCU. They may make you take a 4.5 yr loan or 5 yrs instead of 65 months, but don't mention anything to them unless they tell you it's a problem. This won't be an issue for you so don't worry/bother asking about it.

Just one caution: be careful on older M cars. Off hand, I know they can have higher repair expenses, something you need to make sure you are prepared for. Also be sure to negotiate the price well (see my thread on Financing, Leasing or refi a car...the buying stuff is in the first post). Harder on used cars, but I think you'll will still get better results if you play off 2 internet salesmen of 2 similar cars. Heck more than 2 is better...the more you make compete the better the price.

If you want to know what the dealership paid for the car, if you have a friend who's a dealer get him to look up Manheim MMR for you. Otherwise, it's typically around KBB Very Good condition trade-in value. Make sure there's room for the dealer to profit, but you generally shouldn't pay KBB Retail prices imo. PM me if you want more help on the car you're looking at.

---

I just called and spoke to them to get more details and the score they pulled was a 687 from Equifax.

You could say I'm pretty invovled in the car world and so higher repair expense was one thing I've kept in mind but my dad is also a mechanic and so I've always been able to get anything fixed at our shop. Parts still have that nice BMW premium though!  I'm looking around now to make sure that I don't want to get something newer. The ones I was looking were all on car forums just because you get a little better idea of what kind of life the car lived, i.e. whether it's been on a track, or whatever.

Having said that, we also have access to Manheim so that's what I use to find prices. My dad isn't actively at the auction though but I do have another friend who is for his own little dealership so I'm working with him now to look at other options. Possibly a newer 335.

I'll look over your threads though! I'm still new to this section. I will definitely PM you though if I need more help, thanks a ton!