topic Re: Auto Financing Question in Auto Loans

Auto Financing Question

daveg38 — Sun, 13 May 2012 13:11:11 GMT

I have my sights set on several vehicles within the $10000-$11000 range. My question is this: Once the deal is struck and we talk about payment options, what would my chances be in paying about 80% on my credit card and get the other 20% financing without hassle? Currently my scores are EQ 639 (tanked a little with utilization), TU 678 and EX is 602.

I could put the entire cost across 3 credit cards yet wish to avoid if possible.

Re: Auto Financing Question

Revelate — Sun, 13 May 2012 14:34:04 GMT

I really don't know, but I'd say between slim and none as a guess.

Two reasons:

- nobody is going to finance a $2000 auto loan.

- you're effectively putting 0% down from an underwriting perspective on what's assuredly a used vehicle at those prices.

My thoughts anyway, could be mistaken.

Further thoughts, you could probably just buy it all on a credit card, but why would you want to?

- An auto tradeline is a non-trivial one from a FICO perspective

- The interest will almost certainly be higher on a credit card than on an auto loan.

Doesn't make sense for lenders, doesn't make sense for you either. Just play it straight up, come up with 1K or whatever and take a straight auto loan and you'll be much better off.

Re: Auto Financing Question

daveg38 — Sun, 13 May 2012 14:45:09 GMT

Not sure my scores as given would be enough to get the auto loan...

Re: Auto Financing Question

Revelate — Sun, 13 May 2012 15:03:04 GMT

@daveg38 wrote:
Not sure my scores as given would be enough to get the auto loan...

Oh please . I have an auto loan and my credit situation is much worse than yours (and was even further below when I got it). Auto loans are absolutely the easiest loan type to qualify for. If you can show any sort of a downpayment for a used vehicle, scores just matter for the rate you get. In your case, since your scores are damped by a temporary utilization penalty, just take whatever you get offered for financing, fix the utilization, and go refi if you don't like the terms you got before.

You'll be fine.

Re: Auto Financing Question

daveg38 — Sun, 13 May 2012 15:19:31 GMT

Not to bother you, but you think with:

1) No baddies

2) No lates

3) Scores as stated

4) 2 past auto loans paid off with no lates from BHPH lots

5) 20-30% down

That I will be ok?

Re: Auto Financing Question

Revelate — Sun, 13 May 2012 15:31:05 GMT

@daveg38 wrote:
Not to bother you, but you think with:

1) No baddies
2) No lates
3) Scores as stated
4) 2 past auto loans paid off with no lates from BHPH lots
5) 20-30% down

That I will be ok?

Dude, that's a guarunteed approval . I know this forum is dominated by credit card and mortgage chasing, which colors the typical experience here: auto loan approvals are not in either category in terms of difficulty, not even close and it may be by more than an order of magnitude.

Like I said, you may want to refinance the loan later when you get your utilization down, but that's a temporary thing and if you need a car now, you need a car now. You may not even need to, NFCU offers *fantastic* auto loan rates to their members, and I see you have one of their cards in your sig line. In seeing that, I think you'll be more than fine... I'm a big fan of shopping with multiple lenders, but from the anecdotal evidence on this forum, if you're able to get one of their auto loans, you probably don't need to look anywhere else.

Re: Auto Financing Question

Anonymous — Mon, 14 May 2012 17:42:34 GMT

@Revelate wrote:
@daveg38 wrote:
Not to bother you, but you think with:

1) No baddies
2) No lates
3) Scores as stated
4) 2 past auto loans paid off with no lates from BHPH lots
5) 20-30% down

That I will be ok?
Dude, that's a guarunteed approval . I know this forum is dominated by credit card and mortgage chasing, which colors the typical experience here: auto loan approvals are not in either category in terms of difficulty, not even close and it may be by more than an order of magnitude.

Like I said, you may want to refinance the loan later when you get your utilization down, but that's a temporary thing and if you need a car now, you need a car now. You may not even need to, NFCU offers *fantastic* auto loan rates to their members, and I see you have one of their cards in your sig line. In seeing that, I think you'll be more than fine... I'm a big fan of shopping with multiple lenders, but from the anecdotal evidence on this forum, if you're able to get one of their auto loans, you probably don't need to look anywhere else.

+1.

25% and above DP increases auto loan approval chances. So see if you can achieve that.

Re: Auto Financing Question

Anonymous — Tue, 15 May 2012 18:23:34 GMT

YEAH YOU WOULD NEED TO PUT DOWN 2,000 OR 3,000 ON THE CREDIT CARD AND FINANCE THE REST

GOOD LUCK