topic Re: Do I Have Any Chance at Getting A Loan? in Auto Loans

Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 15:26:26 GMT

Here's the situation: high credit card debt: $75K, 99% utilization.

Credit Scores: Equifax 699, Experian 709, TransU 708

$80K/Yr income verifiable w/paystubs, 25K from side business (verify w/ Tax return), 10K unverifiable

Never late on anything over 25 year credit history, including 3 auto loans.

Re: Do I Have Any Chance at Getting A Loan?

dvilc001 — Wed, 08 Aug 2012 16:46:48 GMT

Your credit scores are good, but your DTI is high...they may give u problems based on that....

Re: Do I Have Any Chance at Getting A Loan?

dvilc001 — Wed, 08 Aug 2012 16:47:38 GMT

Try bringing down the CC's, your scores will increase, and you can qualify for way better rates

Re: Do I Have Any Chance at Getting A Loan?

p- — Wed, 08 Aug 2012 16:49:46 GMT

@Anonymous wrote:
Here's the situation: high credit card debt: $75K, 99% utilization.
Credit Scores: Equifax 699, Experian 709, TransU 708
$80K/Yr income verifiable w/paystubs, 25K from side business (verify w/ Tax return), 10K unverifiable

Never late on anything over 25 year credit history, including 3 auto loans.

This advice may be unwelcome, but here it comes anyway:

Wait. Don't finance a car yet, get by however you need to and use the payment money to pay down your credit cards. Running everything so close to the line is just asking for disaster, not to mention what you must be paying in interest.

Re: Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 17:54:09 GMT

You are absolutely correct. Unfortunately, my current car goes off lease in 6 weeks and must be returned. No option to extend.

Re: Do I Have Any Chance at Getting A Loan?

Cellice — Wed, 08 Aug 2012 18:05:08 GMT

With 75K credit card debt you should not be buying a new car. You are putting yourself on track for financial disaster. Unless you have a huge amount of money in savings if something happened to your job (No job is secure in todays economy) You will be in a lot of trouble. Your minimum payments on that amount of debt alone is extreme.

Did you remodel your house on credit cards?

Re: Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 18:25:40 GMT

No. it was mostly business expenses. I have a client that owes me more than that amount and is working out a payment plan. In the meantime, I need a car.

Re: Do I Have Any Chance at Getting A Loan?

Cellice — Wed, 08 Aug 2012 18:19:55 GMT

You will get approved because your scores are just fine. You also have decent income and if your auto history is negative free you should have a decent auto enhanced score. You might actually be able to get another lease. Since the new monthly payment will just replace your existing payment it shouldn't be a stretch for a bank to approve you. Its not likely you are adding another payment without removing one first.

Re: Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 18:27:38 GMT

Thanks for the information. Is there are particular lender or bank that would be more likely to work with me?

Re: Do I Have Any Chance at Getting A Loan?

Cellice — Wed, 08 Aug 2012 18:30:57 GMT

Who is your current loan with?

Re: Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 18:35:06 GMT

BMW Financial Services

Re: Do I Have Any Chance at Getting A Loan?

Cellice — Wed, 08 Aug 2012 19:09:19 GMT

If you plan on leasing another BMW they should approve you again without much issue. They will base a lot of their decision on your past history with them. BMW considers anything above 680 Tier 1 so you'll qualify for the best rates and leases with them. For a limited time, current and returning BMW owners can receive $750 in lease/finance loyalty cash on any new 2012 or 2013 BMW. Additionally, existing BMW Financial Services customers can receive up to $700 off a new 2012 or 2013 BMW by downloading the BMW Ultimate Drive app and taking a test drive. Offer ends September 30th, 2012

Ally Bank is another good one. That means you can lease or buy a Cadillac, Chevy, or Buick.

Re: Do I Have Any Chance at Getting A Loan?

Anonymous — Wed, 08 Aug 2012 19:22:49 GMT

Thanks again for the info. I will give them a try.

Re: Do I Have Any Chance at Getting A Loan?

p- — Wed, 08 Aug 2012 20:02:24 GMT

@Anonymous wrote:
You are absolutely correct. Unfortunately, my current car goes off lease in 6 weeks and must be returned. No option to extend....

No. it was mostly business expenses. I have a client that owes me more than that amount and is working out a payment plan. In the meantime, I need a car.

Ah. That changes the picture a bit. Hope your client doen't default. From a purchasing standpoint, if I were in your shoes I might contact a credit union, or somewhere I had a chance to sit down with someone if denied. Also, as the other poster mentioned, your history with BMW might smooth things along if you finance with them again.

Really, your only problem is utilization. If you have liquid assets enough to pay the cards down temporarily, then run them back up after a statement posts you might see some score help. Or, you could ask your credit issuers to increase your limits.

Good luck...