topic Re: Why was I denied auto loan? What should I do next? in Auto Loans

Why was I denied auto loan? What should I do next?

Anonymous — Tue, 25 Mar 2014 20:59:59 GMT

Here's my story,

I'm 22 years old I opened my first secured credit card when I was 20. I currently have the following credit cards open. All have always been paid in full and never over 25% usage

Bank of America visa platinum plus cash rewards visa 1,500 limit (6 months)

Bank of America visa platinum plus 300 limit (1.5 yrs)

Discover it card with myfico score on statement 2000 limit (3 months)

Capital One journey card with 500 limit (5 months)

Capital One card with 200 limit (2 years)

Myfico score is 655

Experian score is 663

Equifax 663

As of 3/11.

My first auto loan was December 2012. Got a 8000 loan and put 4,000 down from a credit union in mass for a 12% apr for 5 years

Never a late payment but got in a car accident and insurance totaled car And paid off loan in full on sep 30th 2013. I got the remainder.

I have had my current job for 2 years exactly come April 5th I believe.

I made 56k last year gross, on pace to clear 60k this year.

I have next to no bills, I pay 400 a month rent, 45 for cell phone and 100 for insurance. Rest is food and gas and whatever stuff I do.

I have been planning a new car purchase for about 6 months now. Getting a 2015 Wrx.

The car is going to be 28.5 otd, already preordered and negotiated price. I have 13,500 to put down and want to finance 15,000.

I was recently denied auto loans from chase and capital one, both were online apps. Don't know reason yet as I just applied yesterday.

This is the tricky part, and why I feel I have been denied.

I got my job when I was in nh, my home state and where I am currently licensed and my car is registered. I was transferred to Washington, D.C. For work last April so been here about a year. I do travel home regularly and am keeping nh as my residency state, and wish to do so through loan process to avoid paying any sales tax and due to the fact that I'll be transferring back there soon. Which would be 2-3k for sales tax in virginia where I stay.

but, I had to change the address on my bofa accounts to northern virginia where I rent the room for 400 cause I wanted to get a few things in the mail I ordered offline and they wouldn't ship to me hereunkess I changed.

my cap one and discover card has my NH address.

Could the fact that my address' vary be the reason I was denied. I have good DTI, decent income, good job longevity etc etc. but one of the security questions on the chase app was have you recently resided in any of the following locations. Abcde or f and one of them was the town I stay in now so I selected it.

My car is scheduled to arrive end of April and I have a 1k deposit on it that is non refundable, so I'm trying to go in there with a blank check that's approved at a decent rate Opposed to being at the dealers will.

Would I have better luck going in to get a loan in person?

Should I change the address on my bofa account?

if I go to a credit union here in northern Virginia area can I apply for a loan with nh as my address?

Should I be worried or will I be able to get a decent rate at the dealer if nothing else?

Thanks for the responses before hand! Been lurking on here awhile and lots of useful info and people so thanks!

Re: Why was I denied auto loan? What should I do next?

Remember0 — Tue, 25 Mar 2014 21:56:26 GMT

Your address isn't worrying me at all. For what it's worth, I use a PO Box in a state I'm rarely in (parents' home state) as my address for everything. I've gotten unsecured loans in the tens of thousands and not one credit has asked me why I don't even have a street address, only a PO Box.

What is worrying me though are those scores. You say no baddies, but why then are the scores 600s? Do you have high util? What balances reported on your last statement for all those cards and do you PIF your cards?

Re: Why was I denied auto loan? What should I do next?

Anonymous — Tue, 25 Mar 2014 22:06:57 GMT

Had 1 account I collections from 3 years ago from an eye exam, like 150$. Paid it off the day I found out about like 2 years when I started learning and striving to improve my credit. I'm not sure if t parents credit being really bad has anything to do with it, my mom is trying to claim bankruptcy at the moment and my dad has pretty bad dti.

other than that all I have is credit checks that were done for my first auto loan and various credit cards.

always pay in full and utilization is 25% or lower.

I put the two cards with the lowest limits in a shoe box and haven't used them for a few months but figured I'd leave them open just to have more good standing accounts. Not sure if that's good or bad, but didn't think it would hurt

Re: Why was I denied auto loan? What should I do next?

Anonymous — Tue, 25 Mar 2014 22:22:58 GMT

I'm considering filling out an app with dcu, should I wait til I make the trip home to nh in 2 weeks or do it online?

also changed my address at work to my dad's house in nh where as my address on my license is my moms place.

i made the mistake of saying I was at current address for 3 years and put down my dad's address. Maybe if I put my moms on app I'd be accepted, or does it not really matter.

and if they want proof of residence what do I do, I have no utiltiy bill or rental agreement from my dad....

just my license for nh which is my moms address.

or is my time at current address not a big deal at all?

Re: Why was I denied auto loan? What should I do next?

Remember0 — Thu, 27 Mar 2014 19:08:26 GMT

1) Since its paid, that medical collections is easy to get off your report. mod cut~ Lexie

2) Do you have any cards at all that you are an authorized user on with your parents? You and your parents should have seperate reports. Look up your credit report (free once annually from annualcreditreport.com ). You don't need to buy a score, just the free report (do equifax if you can, since that's what dcu pulls). Are there cards or lines OTHER than your own credit cards, auto loan, and loans YOU took out personally? If so, do they say they are authorized user?

3) As far as DCU, if you can wait, yeah, I'd apply in person at a branch. Not only because it'll ease any address issues (which really isn't an issue), but because I'm hoping it buys you some time to sort out numbers 1 and 2. Proof of residence? I don't know, explain it to them if they ask...they'll think of something. DCU isn't state specific so worst case if they hang up on that detail, you can just give them another addy (especially easier in person).

With good util (good idea putting the other cards in a shoebox), you shouldn't be 600s tbh. Try to pay the card you do use to unbder 10% of it's limit BEFORE the statement cuts so the statement balance is less than 10% of it's limit, but this isn't hurting you that much. There's something else going on here...pull your report.

Re: Why was I denied auto loan? What should I do next?

Anonymous — Tue, 25 Mar 2014 23:33:11 GMT

just did number one on the website.

As for number two, I'm sure nobody else has authorization for any of my accounts or in any way is attached to them. I've never used a cosigner on anything.

would check again but already used my free report for this year. Unless it renewed on January 1st, but I thought it was 1 year from last free report.

number three I will definitely wait until I go home and go in person, just hope the loan officer is there on a Friday.

Thank you remember!

edit: I just filed a complaint on the website provided.

Re: Why was I denied auto loan? What should I do next?

Remember0 — Fri, 28 Mar 2014 09:35:20 GMT

1) Sign up for quizzle. That way you'll get another Equifax report for free! Just this is important: When answering Quizzle's security questions, have your old credit report in front of you. Keep in mind any new changes that have happened. The correct answers for your questions come directly from your new report (aka old report + whatever new data has happened).

I don't mean you cosigned for anyone. I meant if your parents ever added you to their credit card accounts so you can get your own card under their account and spend under their account (but with a card with your name on it)...look up authorized user credit card if I'm not clear. If in the past they added you and they now have high util/lates before BK, it could affect your credit, but if it is authorized user accounts, it's easy to get them off your report.

[mod cut]"

Where exactly did you send your complaint to on the website? Like what website? At this point, if submitted to credit bureaus online, don't resubmit by mail. Wait till they say something online. But if that collection is on all three bureaus, you need to send a seperate letter to each one, so if you only did one bureau online, go ahead and send the first step letter to the other TWO BY MAIL CM ONLY?

3) Re: not using credit cards. It's a careful balance. Those extra lines are helping your credit even though in a shoebox, do NOT close them. If you make no charges for like 90 days, I think a lot of issuers close the account for inactivity. Instead swpie something on it. A week later BUT BEFORE YOUR MONTHLY STATEMENT COMES, pay off what you swiped (may have to make a phone payment since your statement hasn't come yet). Notice how here we accomplish the same thing: your statement and the report to the bureau will report 0, but it was used so the issuer won't cancel.

You could in theory swipe whatever till one week aand a half before your statement closes (call to ask when). Wait three to four days for all pending charges to settle. Then pay the entire balance in full effective at least two days before the statement closes. This way the payment posts before statement cuts. Statement reflects 0 balance because as of the cut date, your charges were the same amount as payments/credits that month!

mod cut-we are unable to discuss hipaa in this forum. Please refrain from openly offering, advising or discussing this procedure.

~Lexie, myFICO Moderator

Re: Why was I denied auto loan? What should I do next?

Anonymous — Thu, 27 Mar 2014 19:09:36 GMT

Apparently I filed a complaint not a dispute

mod cut

I will have to go through everything more thoroughly today after work.

I don't have a statement or anything from the collection agency because I payed online, will that be a problem?

As for number 2, I have never been on my dad or moms credit account. Got my first card as a secured one by myself.

Re: Why was I denied auto loan? What should I do next?

Anonymous — Wed, 26 Mar 2014 21:14:31 GMT

Ok, It says paid in full on my credit report but I'd have to search through my statements online to find it. Not sure how long back they save your statements tho.

Worse case scenario tho, if I don't get thus off my report by April 4th (next trip home) what do you think my chances are at dcu?

Re: Why was I denied auto loan? What should I do next?

Remember0 — Wed, 26 Mar 2014 21:16:12 GMT

Pretty sure DCU will approve no worries even if not off. But with a 663, you're looking at 4-5% for 65 months with DCU instead of 1.24%. No need to look for statements if it says PIF on credit reports. Just take a screenshot/print out reports, that's proof enough.

Re: Why was I denied auto loan? What should I do next?

Anonymous — Wed, 26 Mar 2014 21:22:38 GMT

Cool, just looked at my quizzle score and it says vantage score is 721. That's equifax correct? Is that what dcu will pull so maybe I'll qualify for 1.24%

Re: Why was I denied auto loan? What should I do next?

Remember0 — Wed, 26 Mar 2014 21:24:09 GMT

Vantagescore is a FAKO and doesn't count. Quizzle is EQ though. I've heard reports that DCU pulls essentially the same score as this website.

Re: Why was I denied auto loan? What should I do next?

Anonymous — Wed, 26 Mar 2014 21:25:41 GMT

Quizzle also confirmed the account in collections was medical, I was about 95% sure it was but that confirms it. 48$ balance when sent to collection. How stupid...

Re: Why was I denied auto loan? What should I do next?

Anonymous — Wed, 26 Mar 2014 21:26:42 GMT

Well that's good news. What's fako stand for?

Re: Why was I denied auto loan? What should I do next?

Anonymous — Wed, 26 Mar 2014 22:19:55 GMT

Just looked over the entire process of getting the account removed from my credit report and it seems overwhelming, but one step at a time I suppose. I'm gonna print the dispute form tomorow and handwrite it exactly as they say and mail it Friday.

Re: Why was I denied auto loan? What should I do next?

Remember0 — Wed, 26 Mar 2014 22:21:41 GMT

FAKO doesn't stand for anything. Just it's a fake FICO score, so sort of worthless and doesn't have any predictive value.