topic Re: Chances at Auto Loan Approval in Auto Loans

Chances at Auto Loan Approval

jakehardy95 — Tue, 18 Apr 2023 21:09:36 GMT

Hey everyone, looking to see what your thoughts are on me getting approved for an auto loan.

Current Scores:

FICO 8:

EQ: 663

TU: 655

EX: 637

FICO Auto8:

EQ: 643

TU: 623

EX: 581

Currently have 2 maxed out CCs at $15k and $5k and no auto loans. Had one 60 day late on one auto loan back in 2018 and then a few 30 day lates in 2019. Currently make $100k and looking to apply for a loan for $35k. DTI is ~10% currently. No other baddies. My two auto loans in the past were for $12k and $25k. Also if anyone has any advice for bringing score up before i apply or anything i should do before applying, let me know!

Re: Chances at Auto Loan Approval

Harvey26 — Tue, 18 Apr 2023 22:52:33 GMT

@jakehardy95 are you able to pay off at 5k cc at least i would think that would push you at least to 680 which would get you better terms. Try cap one auto navigator or penfed both are SP for rates.

jakehardy95 — Tue, 18 Apr 2023 23:03:26 GMT

Re: Chances at Auto Loan Approval

jakehardy95 — Tue, 18 Apr 2023 23:03:37 GMT

unfortunately probably not. my goal right now is to get a loan and refinance later on down the road when my credit score is better. i plan on going with pen fed or navy fed. pen fed gave me a really good rate last year with a mid 600s credit score so im hoping for around the same this year.

Re: Chances at Auto Loan Approval

CreditCuriosity — Tue, 18 Apr 2023 23:51:43 GMT

@jakehardy95 wrote:
unfortunately probably not. my goal right now is to get a loan and refinance later on down the road when my credit score is better. i plan on going with pen fed or navy fed. pen fed gave me a really good rate last year with a mid 600s credit score so im hoping for around the same this year.

Rates have gone up consideribly since last year. Lowest rates with PenFed is not great compared to what they were 3-4 years ago. You will likely get approved somewhere, but not with a great rate. Only way to get scores up is pay down maxed out CC's

Re: Chances at Auto Loan Approval

jakehardy95 — Wed, 19 Apr 2023 01:59:33 GMT

so i actually just got approved, 72 months at 8.82% (unfortunately high because of my score but not terrible in todays stupid high interest rates) plan on refinancing after i pay down/off some credit cards.

Re: Chances at Auto Loan Approval

fury1995 — Wed, 19 Apr 2023 02:11:14 GMT

@jakehardy95 wrote:
Hey everyone, looking to see what your thoughts are on me getting approved for an auto loan.
Current Scores:
FICO 8:
EQ: 663
TU: 655
EX: 637
FICO Auto8:
EQ: 643
TU: 623
EX: 581

Currently have 2 maxed out CCs at $15k and $5k and no auto loans. Had one 60 day late on one auto loan back in 2018 and then a few 30 day lates in 2019. Currently make $100k and looking to apply for a loan for $35k. DTI is ~10% currently. No other baddies. My two auto loans in the past were for $12k and $25k. Also if anyone has any advice for bringing score up before i apply or anything i should do before applying, let me know!

If your DTI is 10%, what's holding you back from paying down your current credit card balances? Your late payments have aged enough and shouldn't interfere with your ability to get an approval however your 100% utility will keep you from a prime rate which will be more impactful on your total interest charges over the term.

The best advice to get your scores up is to get some room pn those two credit cards. Otherwise, you'll probably need to put a significant down payment towards your application. Banks have become a little more tight and their looking at advances (LTV) and applicant debts.

Re: Chances at Auto Loan Approval

CreditCuriosity — Wed, 19 Apr 2023 10:51:15 GMT

@jakehardy95 wrote:
so i actually just got approved, 72 months at 8.82% (unfortunately high because of my score but not terrible in todays stupid high interest rates) plan on refinancing after i pay down/off some credit cards.

Congrats on your approval and lower rate than I expected (by several points) quite honestly. Do you mind if I ask who that approval is with?