Would I qualify for a new car loan?

[cartwrna]

This is a little off subject, but as far as your student loans I wouldn't just settle. They offer rehabilitation programs for them where after you pay 9-10 on time monthly payments they are then rehabilitated. All negative info is removed, they are assigned to a new creditor, they are backdated to when they were taken out to show nothing but positive. If I remember correctly they also took all of the accrued interest off of mine. This would look way better for your credit file then a "settled" account.

[Anonymous]

I've considered it before, but what scares me is the guy couldn't tell me exactly how much of the 2,300 they've already offset from me would be applied to it after rehabilitation. If none of it gets applied then that's a very expensive credit repair

[Dj4Money]

 Congrats as well. I am in the middle of a car purchase as well, far from over. I don't want to derail your thread so I'll just leave it at that.

[Knight302]

Okay so I pulled my 3 Fico scores: 

Equifax: 652

TU : 689

EX: 667

     I am trying to get a rather large loan approval (up to $45,000 will be the max I am willing to spend tax,tag,title, etc. but will most likely be out the door around $39 or $40). My scores are being held back for three reasons. The first is a $94 collection for an anesthesia bill that I forgot about but eventually paid in full to the local collection agency. The next is my DTI may be a little high. Finally, the reports say I only have 12 years of history. I am 44 years old and have had credit cards, department store cards and a mortgage since 1993. 

   My questions:

• Why is my credit report (all 3 of them) showing only 12 years of history?
• Is there anything I can do to have that $94 collection removed? This seems trivial to me but it is there.
• I can lower my DTI in 2 months time by simply paying down my credit cards. It may only raise my scores 10-20 points though.

   I have been turned down by CapOne, Wells Fargo, Up2Drive and a few others. Strange that I have a credit card with CapOne with a nice limit that I carry a small balance on but can't get approved for a new car loan. I have been approved by Drivetime (not even open for discussion), Chrysler Financial (but oly for up to $29,000), Car Finance up to $30,000, Roadloans for $26,000 but at 14.49%. Today I found out that I was turned down by Penfed because of the collection that is 3 years old. I was approved in May for a new Ford Escape titanium at 1.9% with Ford credit (for my wife). I currently have a 2014 Dodge Challenger R/T financed through US bank at 6.8% that will be traded in if approved for the loan I want. I tried to apply through US Bank but they said they do not service loans in my area. Not sure how I have the approval through them for my current vehicle if they don't serve this area.

    I have applied at DCU, but no response yet although they did ask for some documents today.

   Anyone have any ideas on where/how I can get the loan I need at below 6%?

   I have been reading the forums and appreciate the knowledge many of you share.

[EddieK]

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@Knight302 wrote:

Okay so I pulled my 3 Fico scores: 

Equifax: 652

TU : 689

EX: 667

     I am trying to get a rather large loan approval (up to $45,000 will be the max I am willing to spend tax,tag,title, etc. but will most likely be out the door around $39 or $40). My scores are being held back for three reasons. The first is a $94 collection for an anesthesia bill that I forgot about but eventually paid in full to the local collection agency. The next is my DTI may be a little high. Finally, the reports say I only have 12 years of history. I am 44 years old and have had credit cards, department store cards and a mortgage since 1993. 

   My questions:

• Why is my credit report (all 3 of them) showing only 12 years of history?  Could be that you closed those accounts and they reported up to 10 years afterwards and it is now past that timeframe.
• Is there anything I can do to have that $94 collection removed? This seems trivial to me but it is there.  I'd start sending the collection agency good will letters.  If you're not familiar with those, check out the rebuilding forum.
• I can lower my DTI in 2 months time by simply paying down my credit cards. It may only raise my scores 10-20 points though.  Definitely do this...it will only help.

   I have been turned down by CapOne, Wells Fargo, Up2Drive and a few others. Strange that I have a credit card with CapOne with a nice limit that I carry a small balance on but can't get approved for a new car loan. I have been approved by Drivetime (not even open for discussion), Chrysler Financial (but oly for up to $29,000), Car Finance up to $30,000, Roadloans for $26,000 but at 14.49%. Today I found out that I was turned down by Penfed because of the collection that is 3 years old. I was approved in May for a new Ford Escape titanium at 1.9% with Ford credit (for my wife). I currently have a 2014 Dodge Challenger R/T financed through US bank at 6.8% that will be traded in if approved for the loan I want. I tried to apply through US Bank but they said they do not service loans in my area. Not sure how I have the approval through them for my current vehicle if they don't serve this area.

    I have applied at DCU, but no response yet although they did ask for some documents today.

   Anyone have any ideas on where/how I can get the loan I need at below 6%?  I'd say you have a good shot of getting sub 6% rates with DCU.  Most likely around 4.5% with your EQ score.  

   I have been reading the forums and appreciate the knowledge many of you share.

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[Knight302]

Thanks EddieK.  I will review the goodwill letter information and see if it will help me. It is worth a shot.

   as for my loan with DCU, it is in "review" status. I don't know what that means but I am crossing my fingers. Hoping that it comes through but not getting my hopes up because of the denial by others.

[Knight302]

  Well, the rep on the phone told me today that I had an approval at 7.49%. She put me on hold for a moment, came back and said that unfortunately the loan request was denied because of too many recently opened accounts.  I gues this would be correct because I did get a belk, macy's and two other department store cards for my wife in 2014. They do not have large balances on them, but I guess it is what it is.

   It was worth a shot. Guess I will just have to wait.

[Anonymous]

Seeing as most of your score are better than mine but you have a few cars already, I'd be willing to bet its your DTI thats killing you.

[Knight302]

    Jeff,

       I agree with you but my DTI is really not that bad, in my opinion. I think it is around 37% last I checked. My past seems to haunt me some though I am working on rebuilding my credit. I see now how opening new accounts can hurt. I just wish there was a company that would look at the history on a case by case basis, ask questions, and then make a more educated decision on a loan request. I have seen many cases where a number does not give a true picture and some that have blemished credit should not be penalized by high rates if they can see improvements in their history.

[Anonymous]

Jeff--collection fees alone are between 18-25%. If you complete rehab those are removed from your loan balance. Any offset will be applied regardless of rehab. Fed. govt RARELY settles, they don't have to. They are the only ones that can even garnish soc sec income.