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Regular Contributor
Wesley23
Posts: 122
Registered: ‎06-02-2008

job history and auto loans

Hey. I have great credit and would otherwise be able to go through penfed to get an auto loan (I have a CC with them). However, I just started a new job. Does the amount of time at my current job impact my ability to get an auto loan? Thanks in advance for the feedback.

Contributor
Alexandria
Posts: 98
Registered: ‎01-14-2008

Re: job history and auto loans

[ Edited ]

job history is definitely something they look at but also DTI, credit score, amount of loan needed, highest previous auto loan/payments if any, etc. So if you could tell us that much then we should be able to give you an idea of if you would get approved or not.


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Current Score: 679
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Regular Contributor
Wesley23
Posts: 122
Registered: ‎06-02-2008

Re: job history and auto loans

 


Alexandria wrote:

job history is definitely something they look at but also DTI, credit score, amount of loan needed, highest previous auto loan/payments if any, etc. So if you could tell us that much then we should be able to give you an idea of if you would get approved or not.


starting a new job (math teacher), almost no debt (8k in federal student loans), only need about 6k in loans, credit score around 750 (haven't checked FICO score in months), no previous auto loan. my credit history is short, however. i have about 6 or 7 years of history.

 

Established Member
yesme
Posts: 45
Registered: ‎07-13-2010

Re: job history and auto loans

[ Edited ]

 


Wesley23 wrote:

 


Alexandria wrote:

job history is definitely something they look at but also DTI, credit score, amount of loan needed, highest previous auto loan/payments if any, etc. So if you could tell us that much then we should be able to give you an idea of if you would get approved or not.


starting a new job (math teacher), almost no debt (8k in federal student loans), only need about 6k in loans, credit score around 750 (haven't checked FICO score in months), no previous auto loan. my credit history is short, however. i have about 6 or 7 years of history.

 


 

Usually College is looked as work history as long as it is field related.

 

As Alexandria pointed out they look at everything as a whole, to include the legnth of your credit history, DTI. I have seen people with mis 700 FICO's with one year of credit, yes the FICO is high, but their 'file' is short. Making it hard to get approved.

 

Auto loans look more at DTI then any other type because there isn't a front end back end for auto's. It is combined ratios. Making your DTI a lot higher!

 

FICO scores are important for two reasons.

Need a certain score to qualify

Then you have Tiers for interest rates.

 

DTI, will kill the deal if you are on a high end say more then 45%(45% is pretty large) even if you have an 800 FICO. Yes your score may be great, but it could be artificial. Could you get a loan with a high DTI load, sure, but its hard and may fall for a higher rate.

 

Auto loans usually look for several trade lines, but isn't necessary, just helps if you are hurting in other areas.

 

You said your credit score is AROUND this is vague, as you should know the exact number because it is exact and not a range. You could have inaccurate info, or a balance reporting that you didn't know about deflating such a good credit score. You should find out the exact number because around 750 could be 730, and could make you pay more for your auto. Be sure to find out both your scores before going into the dealership. Make sure they are FICO scores!

 

Hope this helps!

Contributor
Alexandria
Posts: 98
Registered: ‎01-14-2008

Re: job history and auto loans

also are you looking at putting anything down? do you have a trade-in?


Starting Score: 626 (July '10)
Current Score: 679
Goal Score: 720


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Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: job history and auto loans

Certain lenders do have a minimum at the job requirement.


That being said for many people credit score can carry them past this requirement in dealer financing.

 

And for a lot of lenders as long as you have unbroken employment you are fine.

but again, it is individual lenders and their policies.

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