topic Re: Denied USAA Auto Loan!? Should I recon? in Auto Loans

Denied USAA Auto Loan!? Should I recon?

Anonymous — Tue, 22 Feb 2011 08:10:38 GMT

My FICO is 740. Applied for an auto loan with USAA and was declined because too many new accounts and past delinquencies. The only other new account I have is one recent credit card (with USAA) and another recent car loan which is a joint with my souse. The only delinquency I've ever had was about 5 years ago which were 2 30 day late payments on a car I already paid off.

I applied for $60k and currently have about 8 paid in full vehicles showing on my report that range from $30k - $80k! My income is over $200,000. Debt ratio is very low (mortgage paid off)

I'm baffled. Should I send a recon letter or find another lender? Anyone have luck with them? Not sure who I should send the letter too...or if its even worth it...

Re: Denied USAA Auto Loan!? Should I recon?

cdtotten — Tue, 22 Feb 2011 12:59:41 GMT

I would call them for a recon; making sure they understand (and offer to send them support) of your income, your past auto purchases and bestow anything else you can think of. I think the problem is not in your score, it is the amount you are requesting. If you asked for $25-30k, I bet they would have approved you.

Re: Denied USAA Auto Loan!? Should I recon?

Anonymous — Tue, 22 Feb 2011 18:36:42 GMT

http://ficoforums.myfico.com/t5/Auto-Loans/Will-I-get-approved-for-a-32K-used-auto-loan/td-p/838252

Read the above thread. USAA is horribly conservative when it comes to auto loans. If you qualify for USAA membership then you will qualify for NFCU.

I got a 5.74% rate for 30K approved in 10 mins with a 693EQ and 0 utilization and 50K annual income. My only debt is my rent which is $856 a month.

*Correction* they gave me a 4.74% APR. I just picked the check up today and It was 1% lower APR than I was preapproved for. With a 740 you should get 3.74% APR.

@Anonymous wrote:
My FICO is 740. Applied for an auto loan with USAA and was declined because too many new accounts and past delinquencies. The only other new account I have is one recent credit card (with USAA) and another recent car loan which is a joint with my souse. The only delinquency I've ever had was about 5 years ago which were 2 30 day late payments on a car I already paid off.

I applied for $60k and currently have about 8 paid in full vehicles showing on my report that range from $30k - $80k! My income is over $200,000. Debt ratio is very low (mortgage paid off)

I'm baffled. Should I send a recon letter or find another lender? Anyone have luck with them? Not sure who I should send the letter too...or if its even worth it...

Re: Denied USAA Auto Loan!? Should I recon?

Anonymous — Tue, 22 Feb 2011 17:39:39 GMT

@Anonymous wrote:
http://ficoforums.myfico.com/t5/Auto-Loans/Will-I-get-approved-for-a-32K-used-auto-loan/td-p/838252

Read the above thread. USAA is horribly conservative when it comes to auto loans. If you qualify for USAA membership then you will qualify for NFCU.

I got a 5.74% rate for 30K approved in 10 mins with a 693EQ and 0 utilization and 50K annual income. My only debt is my rent which is $856 a month.

I'm just chiming in to say that, unfortunately, it's not necessarily true that if you qualify for USAA that you will qualify for membership at NFCU. The membership requirements for NFCU is more restrictive than USAA. Actually, anyone can open accounts at USAA, but may have restricted vs. full membership.

Re: Denied USAA Auto Loan!? Should I recon?

Anonymous — Tue, 22 Feb 2011 19:44:28 GMT

Well it's worth a shot. If not a 740 fico score and 200K annual income with low DTI ratio will get approved some were else. Also USAA's rates are only slighly below market average APR's. So he will be able to find a compairable interest rate for the amount he is asking.

OP what exactly is your DTI? Assuming your house is Paid in full, you don't have high utilization on your CC's (below 20K balance/below 50% utilization) and the other car loan is not for a Lambo then your in really good shape. USAA's loan department is better suited for used Kia buyers who put 50% of their income into IRA's. I know that last statement sounded a little too "live in the now" but when your 65 you just can't fully enjoy things as you could have in your 30s-40s. And this guy obviouly has been responsible with his income being as his house is paid off!!!

Re: Denied USAA Auto Loan!? Should I recon?

Anonymous — Wed, 23 Feb 2011 19:06:27 GMT

What a stupid bank...I was counter offered with $25,000!

By comparison, my 22 year old son with a low score, low income, new credit and multiple delinquences was also approved for $25,000 with USAA!

Anyway, was approved for up to $100k w/ Penfed and full amount with Navy Federal.. Thanks for the help guys.