topic Re: Denied! in Auto Loans

Denied!

Tay09 — Thu, 08 Nov 2012 15:48:36 GMT

So I went out on a limb to see if I would get approved for an auto loan for 15K through my credit union, I only planned on using 10K. The rep told me they usually look for a score of 600 for approvaI. I figured since my TU is 631 and EQ is 623 I would give it a try. Well, my score came in at 610 I'm not sure which reporting agency but she said they can't approve me because I have way too much student loans which are not even in repayment at the moment. WHAT!! Guess it serves me right for getting an MPA.

Re: Denied!

Jutz — Thu, 08 Nov 2012 16:07:44 GMT

They should have asked you about your DTI before hand, at least you could have saved yourself the hard pull. That's pretty disappointing to hit their qualifier and get declined for something else.

Re: Denied!

Tay09 — Thu, 08 Nov 2012 16:11:13 GMT

The reason doesn't make any sense to me. If that's the case no one would be able to get an auto loan if they had student loans or a mortgage.

Re: Denied!

Jutz — Thu, 08 Nov 2012 16:38:22 GMT

It's related to Income to Debt ratio.

What's your income, what's your total student debt? Do you know what your payments will be once your repayment starts? It was probably the combination of the 610 with a questionable DTI. The 15k isn't exactly a HUGE amount to request either

Edit: Random smiley, boards are weird this morning

Re: Denied!

Tay09 — Thu, 08 Nov 2012 16:43:35 GMT

Income is $50K and my loan debt is almost $90K. Repayment will prob be close to $600 a month.

My CU said i should be fine with a cosigner but i didnt want to do that. Should I try a bank like Cap One?

Re: Denied!

Jutz — Thu, 08 Nov 2012 16:46:28 GMT

Depends on what APR you may be fine with. Did the CU indicate at what point they might accept you? Like if you hit 650 would they be ok? There's a big difference between financing Cap1 and a CU. My local CU said at 650TU I'd be able to get 7.99% on a used car, whereas mid teens looks commonplace for Cap1 at our scores.

Re: Denied!

Tay09 — Thu, 08 Nov 2012 16:58:52 GMT

No my CU didn't give me a score where I might be accepted, they just suggested I get a cosigner. How many days do I have before the hard pulls affect me. I might as well just see what I get from Cap One since my CU already pulled.

Re: Denied!

Tay09 — Fri, 09 Nov 2012 17:36:32 GMT

Update...well Capital One approved me for a loan up to $21,600.

Re: Denied!

Epcot — Fri, 09 Nov 2012 17:50:13 GMT

Congrats on the Capital One approval!

Re: Denied!

Jutz — Fri, 09 Nov 2012 20:05:51 GMT

What was the APR

And congrats!!

Re: Denied!

Jutz — Fri, 09 Nov 2012 20:12:08 GMT

Just saw in the approval thread, congrats!

Re: Denied!

guydiver — Fri, 09 Nov 2012 22:38:50 GMT

Glad you got the car loan. Just remember, those student loans will be hanging over your head for a very long time. They affect your DTI for a very long time. And they can ruin your credit if you get behind. Life happens, and it's easy to just put those in the back of your mind, almost like they don't exist. Took me almost 19 years to pay mine off. Not preaching here, just a little hard learned experience talking. Good luck.