topic Re: Auto Loan Probability in Auto Loans

Auto Loan Probability

Kmak — Wed, 17 May 2023 05:40:54 GMT

Hello, I am seeking some advice here towards obtaining an auto loan via Navy Fed.

My current scores are as follows:

FICO: 727

Equifax: 752

Trans: 729

FICO Auto 8: 696

FICO Auto 2: 660

I currently have a one year credit history, no late payments, no derogatory statements, Credit Utilization below 10%, 8 new accounts in the last 12 months, salary 115k, DTI: 11%.

I have been with Navy Federal, for about 6 weeks, I would like to apply for a auto loan when I get to 90 days. Based on the information I provided, what are the chances of being qualified for 55k Auto loan?

Re: Auto Loan Probability

sccredit — Wed, 17 May 2023 15:45:17 GMT

The one year history is going to hurt. You'll need to be prepared to make a large down payment and expect a higher interest rate (10% or so). The price is going to be an issue given the lack of prior auto loans, a $55k purchase is high.

Re: Auto Loan Probability

Kmak — Wed, 17 May 2023 17:39:38 GMT

Yeah I figured the one year would have been an issue, that's I chose to ask here first.

@sccredit wrote:
The one year history is going to hurt. You'll need to be prepared to make a large down payment and expect a higher interest rate (10% or so). The price is going to be an issue given the lack of prior auto loans, a $55k purchase is high.

Chase Soft Pull Accuracy

Kmak — Thu, 18 May 2023 12:19:32 GMT

Hello, I did a pre-qualification with Chase Bank and I was approved for 69k (soft pull), I am trying to figure out how accurate is this. Does anyone has experience or have any opinions on this?

Credit history summary:

From last update

My current scores are as follows:

FICO: 737

Equifax: 752

Trans: 729

FICO Auto 8: 708

FICO Auto 2: 695

I currently have a one year credit history, no late payments, no derogatory statements, Credit Utilization below 10%, 8 new accounts in the last 12 months, salary 115k, DTI: 11%.

Re: Auto Loan Probability

MeredithLepore — Thu, 25 May 2023 17:24:33 GMT

Can I ask why $55k for a car? Would you want to consider a more affordable option? — you'll have a lower monthly payment, lower insurance fees, spend significantly less in interest over time, and more income to pay off other debts/save. In terms of the preapproval, the offer is generally good for 90 days.

Re: Auto Loan Probability

Kmak — Thu, 25 May 2023 17:27:46 GMT

Thanks for responding, but I am not interested in a used car at this moment, I appreciate the suggestion though.

Re: Auto Loan Probability

Eric958 — Thu, 25 May 2023 21:21:36 GMT

@MeredithLepore wrote:
Can I ask why $55k for a car? Would you want to consider a more affordable option? — you'll have a lower monthly payment, lower insurance fees, spend significantly less in interest over time, and more income to pay off other debts/save. In terms of the preapproval, the offer is generally good for 90 days.

NO...and NO... HIs LIfe... His Money...geez

Re: Auto Loan Probability

MeredithLepore — Fri, 26 May 2023 15:34:54 GMT

Fair enough, my bad! Sorry, didn't wanna project on you. Anyway, feels like you're all set, so all the best. Hope this works out!

Re: Auto Loan Probability

Eric958 — Fri, 26 May 2023 22:41:18 GMT

@MeredithLepore wrote:
Fair enough, my bad! Sorry, didn't wanna project on you. Anyway, feels like you're all set, so all the best. Hope this works out!

That's Class!!! Well Done! E!

Re: Auto Loan Probability

Thomas_Thumb — Sat, 10 Jun 2023 15:10:48 GMT

@Kmak wrote:
Hello, I am seeking some advice here towards obtaining an auto loan via Navy Fed.

My current scores are as follows:
FICO: 727
Equifax: 752
Trans: 729
FICO Auto 8: 696
FICO Auto 2: 660

I currently have a one year credit history, no late payments, no derogatory statements, Credit Utilization below 10%, 8 new accounts in the last 12 months, salary 115k, DTI: 11%.

I have been with Navy Federal, for about 6 weeks, I would like to apply for a auto loan when I get to 90 days. Based on the information I provided, what are the chances of being qualified for 55k Auto loan?

Depends on your downpayment. If you buy a $69k vehicle and put down 20% then approval odds are much higher. Substantially more risk to lender if $800 down on a $55k car.

Given your short credit history, downpayment will have increased importance in loan approval.