topic Re: Second auto loan needed in Auto Loans

Second auto loan needed

mauribar — Thu, 05 Apr 2012 20:14:38 GMT

So my husband bought a car through cap 1 in Dec 11'. Our 2000 minivan's transmission went out in Feb and we have been without a family car since then. We really need to get a second car as we only have one and the whole family can't even fit into it. So is it going to hurt his chances of getting financed again since he just took out a car loan 3 months ago?

Re: Second auto loan needed

nuggets321 — Fri, 06 Apr 2012 01:13:25 GMT

Have you checked your reports to see if that existing loan is reporting yet ? You MAY have an easier time if it is not reporting as yet. Also income and existing financial obligations have a HUGE role in the approval

Re: Second auto loan needed

Anonymous — Fri, 06 Apr 2012 02:16:32 GMT

@nuggets321 wrote:
Have you checked your reports to see if that existing loan is reporting yet ? You MAY have an easier time if it is not reporting as yet. Also income and existing financial obligations have a HUGE role in the approval

I would be pretty surprised if a 4 month old account, especially one from a big company like Cap One isn't reporting yet.

Most likely this would decrese his chances of approval or lower his interest rate. The new loan will have lowered his AAoA and added "new credit" and inquiries, all of which would probably have lowered his score. Also, he will have a higher DTI with the new loan. It is definitely possible to have more than one at a time though, so this doesn't mean he can't get it. Just that he won't be as qualified as the last time he applied.

Re: Second auto loan needed

nuggets321 — Fri, 06 Apr 2012 12:03:53 GMT

+ 1

Re: Second auto loan needed

mauribar — Fri, 06 Apr 2012 13:44:51 GMT

Yes the loan is already showing on his report. He has 3 inq. on there from the loan and his score has went up since getting it in Dec. As far as DTI we are good on that way below what we need to be. I don't know we may try to hold out a couple more months to save a bigger down payment.

Re: Second auto loan needed

Anonymous — Fri, 06 Apr 2012 15:04:42 GMT

Dti is the big one for approval most places won't go over 40%. Second is major latest of 90 days or more and no repo. also at least one positive current auto tradeline. Your fico will just determine the rate.

Re: Second auto loan needed

mauribar — Fri, 06 Apr 2012 15:38:17 GMT

DTI is 20% and no lates it's just the only auto loan is just 4 months old.

Re: Second auto loan needed

Anonymous — Fri, 06 Apr 2012 15:42:00 GMT

If the bank is worried about it just talk to them and explain don't see the issue