topic Re: Do I qualify for a new loan? in Auto Loans

Do I qualify for a new loan?

Anonymous — Tue, 14 Apr 2015 14:46:48 GMT

I'm looking to purchase a pre-owned car in the next few weeks. I've had some credit issues in the past but have been actively working on rebuilding the past year. Please provide any input on what rates I am looking at and also how much would I be able to finance. I would like a 2013 Camry, Acura Tl or even a Hyundai Sonata. I plan on applying with my primary bank USAA, NFCU and also Nasa FCU. Those are the bank I currently have a relationship with. I am trying to stear far away from dealer financing. I do understand due to my scores by initial interest interest rate will be much higher than normal and looking to refinance in 6-9 months.

Credit Score: current in siggy EQ-608 TU-619 EX-652

AAoA: 1 yr 8 month

# of positive trade lines: 7-8 ALL OBTAINED IN THE PAST YEAR

# of negative trade lines: 2-3 DEPEPENDING ON REPORT

Income: 50k

Lenght of Employment: 14 months (at current employer) but continuous emplyment for 9 yrs

Previous Loan Experience: yes

Debt-to-Income (DTI):

Year of Car: 2013

Miles: unsure

Purchase/Refinance: Purchase

Requested loan term (XX Months): 60 months or less

Down payment amount: $1500

Co-borrower/Co-Signer: no

Other: Current car loan from WFDS 6k left. Previously has 2 90day lates on it. But loan has been current and on time payment for the past 14 months

Inquiries 6 TU 14 EQ 3 EX

Any advice and best options for myself... Thanks in advance

Re: Do I qualify for a new loan?

Anonymous — Tue, 14 Apr 2015 19:17:49 GMT

Noone?

Re: Do I qualify for a new loan?

Anonymous — Wed, 15 Apr 2015 13:32:25 GMT

I would say try with a credit union. My scores are lower than yours, I have 4 positive trade lines and like 7 baddies some falling off this year other it will be a while. I was approved with my local CU for 22k no money down for 66 months at 10.7% apr. Others might have better advise just wanted to give you a view on someone with lower credit.

Re: Do I qualify for a new loan?

04Cobra — Wed, 15 Apr 2015 17:47:50 GMT

Banks will definately look at your overall profile to determine the best rates. I'm hoping the 2 lates won't affect you. Try Navy Fed like you said. Their approvals are good for 30 days to give you ample time to shop for a new car. Good Luck!

Re: Do I qualify for a new loan?

Anonymous — Wed, 15 Apr 2015 17:51:02 GMT

Thanks guys.

Re: Do I qualify for a new loan?

Anonymous — Wed, 15 Apr 2015 18:02:47 GMT

Everyone wants to pull equifax....yikes

Re: Do I qualify for a new loan?

04Cobra — Wed, 15 Apr 2015 18:14:01 GMT

@Anonymous wrote:
Everyone wants to pull equifax....yikes

Yes they do pull EQ. However, you can always refi like you said in a year or so.

Re: Do I qualify for a new loan?

Anonymous — Wed, 15 Apr 2015 19:32:22 GMT

Update-
NFCU-Denied
USAA-Denied
DCU-Denied , stated due to my Verizon collections acct ($160) , new acct and lates on current loan. Rep states my score was 585. my score isnt a 585 on any myfico veriosn (auto, mortgage,creditcard,, O4)
Capital One-Denied.

Should I attempt having the dealer find me financing?

Re: Do I qualify for a new loan?

04Cobra — Thu, 16 Apr 2015 06:13:47 GMT

@Anonymous wrote:
Update-
NFCU-Denied
USAA-Denied
DCU-Denied , stated due to my Verizon collections acct ($160) , new acct and lates on current loan. Rep states my score was 585. my score isnt a 585 on any myfico veriosn (auto, mortgage,creditcard,, O4)
Capital One-Denied.

Should I attempt having the dealer find me financing?

Sorry to hear. You can try financing at the dealer as they work with many lenders. How about a co-signer? That may help as well. Keep your head up

Re: Do I qualify for a new loan?

Anonymous — Thu, 16 Apr 2015 13:31:26 GMT

Try a local credit union within your city, thats what I did. The dealership couldnt finance me with anyone.

Re: Do I qualify for a new loan?

Anonymous — Thu, 16 Apr 2015 17:51:47 GMT

@04Cobra wrote:
@Anonymous wrote:
Update-
NFCU-Denied
USAA-Denied
DCU-Denied , stated due to my Verizon collections acct ($160) , new acct and lates on current loan. Rep states my score was 585. my score isnt a 585 on any myfico veriosn (auto, mortgage,creditcard,, O4)
Capital One-Denied.

Should I attempt having the dealer find me financing?
Sorry to hear. You can try financing at the dealer as they work with many lenders. How about a co-signer? That may help as well. Keep your head up

When I called DCU to check the status application the young lady left me on hold for about 5 min. She asked me about the verizzon collections and also the reason for the late payments on my current car loan. She then left me on hold for another 15 min and then came back with the denial. She said ultimately it was the late payment on the current loan was within the past 2 yrs. It was about 16 months ago. Never late since then. DCu didnt mention anythin about appeal. Should I call back. Both inquiries hit my report today. EQ score still reporting as 608.

NFCU stated I can appeal the decision once I ge the letter in the mail. Whats the process on that?

USAA denial reason was unable to verify income. -but they are myprimary bank with my primary direct deposit.

Re: Do I qualify for a new loan?

TRC_WA — Thu, 16 Apr 2015 17:32:52 GMT

@Anonymous wrote:
@04Cobra wrote:
@Anonymous wrote:
Update-
NFCU-Denied
USAA-Denied
DCU-Denied , stated due to my Verizon collections acct ($160) , new acct and lates on current loan. Rep states my score was 585. my score isnt a 585 on any myfico veriosn (auto, mortgage,creditcard,, O4)
Capital One-Denied.

Should I attempt having the dealer find me financing?
Sorry to hear. You can try financing at the dealer as they work with many lenders. How about a co-signer? That may help as well. Keep your head up
When I called DCU to check the status application the young lady left me on hold for about 5 min. She asked me about the verizzon collections and also the reason for the late payments on my current car loan. She then left me on hold for another 15 min and then came back with the denial. She said ultimately it was the late payment on the current loan was within the past 2 yrs. It was about 16 months ago. Never late since then. DCu didnt mention anythin about denial. Shoul dI call back. Both inquiries hit my report today. EQ score still reporting as 608.

The recent late/collection and the score associated with it is going to get you a horrible interest rate or no financing at all.

Good luck.

Re: Do I qualify for a new loan?

Anonymous — Thu, 16 Apr 2015 17:41:29 GMT

Do you know if USAA/NFCU/DCU all being credit Unions basically used ENHANCED AUTO SCORES on you? its something that most forums would find very useful.

Did they all used EQUIFAX exclusively.

Capital One is a financial institution that only approves absolutely best on auto loans. they send you information as pre-approved but when you apply they deny you based on your current score. I had just one medical collection account come on board with TU/EQ about a month ago and 70% utilization and they denied $25k loan for 2015 Honda CRV.

At this time your best best is to go with the Dealership and do it quickly because you have one too many inquiries already and if you can stay within the 14 days timeframe for bundling all your inquiries it may be that you will be approved by your dealership.

You can always re-finance once you know your credit has improved.

Re: Do I qualify for a new loan?

Anonymous — Thu, 16 Apr 2015 17:55:18 GMT

@Anonymous wrote:
Do you know if USAA/NFCU/DCU all being credit Unions basically used ENHANCED AUTO SCORES on you? its something that most forums would find very useful.
Did they all used EQUIFAX exclusively.
Capital One is a financial institution that only approves absolutely best on auto loans. they send you information as pre-approved but when you apply they deny you based on your current score. I had just one medical collection account come on board with TU/EQ about a month ago and 70% utilization and they denied $25k loan for 2015 Honda CRV.

At this time your best best is to go with the Dealership and do it quickly because you have one too many inquiries already and if you can stay within the 14 days timeframe for bundling all your inquiries it may be that you will be approved by your dealership.
You can always re-finance once you know your credit has improved.

I dont know for sure if they used Auto enhanced score but even comparing the score DCU provided to omy auto enhaced score myfico provides it doesn't match. yes they all pulled EQ for me.

I may go to the Nissan dealership on Saturday. I definietly don't want to do anymore damage with inquiries and such. trying ot take the next BEST step.

Re: Do I qualify for a new loan?

EddieK — Thu, 16 Apr 2015 18:22:28 GMT

@Anonymous wrote:
Do you know if USAA/NFCU/DCU all being credit Unions basically used ENHANCED AUTO SCORES on you? its something that most forums would find very useful.
Did they all used EQUIFAX exclusively.
Capital One is a financial institution that only approves absolutely best on auto loans. they send you information as pre-approved but when you apply they deny you based on your current score. I had just one medical collection account come on board with TU/EQ about a month ago and 70% utilization and they denied $25k loan for 2015 Honda CRV.

At this time your best best is to go with the Dealership and do it quickly because you have one too many inquiries already and if you can stay within the 14 days timeframe for bundling all your inquiries it may be that you will be approved by your dealership.
You can always re-finance once you know your credit has improved.

DCU uses the EQ04 score or if you get your report from here, it's the Fico Score 5. And one issue with the above, Cap1 does not only approve the best on auto loans. They are known to approve very spotty credit histories too, just don't expect great interest rates.

Re: Do I qualify for a new loan?

Anonymous — Mon, 20 Apr 2015 14:17:22 GMT

Another Update.

Went to the Nissan Dealership on Saturday- Had to get an oil change. Test drove a 2015 Altima. liked it and spoke with the managers. told her upfront about the past late payments current report and asked to only submit to Nissana nd maybe one other lender. Nissan decline and Cap One who previously decline when i applied on my own.....APPROVED the interest is high as expected but I def will be re-fi in Jan 2016.

All new cards I obtained in my rebuilding would have aged plus my 2 remaining baddies will also have aged off and many inquires on my reports would have fallen off by then.

Thank for all your suggestions

Re: Do I qualify for a new loan?

Dj4Money — Tue, 21 Apr 2015 02:26:34 GMT

@Anonymous wrote:
Another Update.

Went to the Nissan Dealership on Saturday- Had to get an oil change. Test drove a 2015 Altima. liked it and spoke with the managers. told her upfront about the past late payments current report and asked to only submit to Nissan and maybe one other lender. Nissan decline and Cap One who previously decline when i applied on my own.....APPROVED the interest is high as expected but I def will be re-fi in Jan 2016.

All new cards I obtained in my rebuilding would have aged plus my 2 remaining baddies will also have aged off and many inquires on my reports would have fallen off by then.

Thank for all your suggestions

Congratulations.... Here's a few things for people that don't know but might read this thread.

I had one active collection ($407), no official job at the time and still got a car loan. If you can prove income, stable residence and been on the job at least six months you will get approved.

My score was 641 when I began my car search and was approved on 610.

Will it be the best rates? No! It will be between 10%-25% which is high given the near zero federal rate. With that being said, car sales is what is driving this slow recovery. So unless you are in extreme circumstance you will get approved. My loan is 18.25 % but one lender from CarMax was willing to give me 25%, no money down, drive off with only proof of insurance and a driver's license.

Obviously I didn't take that deal.

The truth is you will can and will get a loan MUCH EASIER ON A NEW CAR. Let me say that again, ON A NEW CAR. Yes you can get a used car, but most banks will not take you out to 6-7 years on a used car.

As long as you maintain perfect payment history for six months to a year, you can easily re-fi a new car as a new car with most credit unions.

With most people your EQ score will lag behind the others because not everybody reports to EQ, but Capital One uses TU firstly and EX secondly depending where you are located. Speaking of Capital One, that's hog wash they only approve on good credit. Even if got great credit you will not get much below 3.99% with Capital One, you are much better off taking your score to a good Credit Union or even a captive bank (Ford, Toyota, Nissan) to easily beat that rate. Capital One is a bad credit lender.... They will give you a loan with 14-18% interest for up to six year with a score around 600. That's what I was offered, pre-approved after I was approved for their secure card, only my approval was attached to a dealership.

If you have trouble getting a loan on your own as I did, your best bet is to go to the dealership. My car loan is through Gateway One and they do not deal directly with the public; that's just one of several examples. The finance manager knows who to go too who will most likely approve you. I was approved 1,600 miles away with no proof of income and Gateway is down in Southern California with me...

If your credit score is around 650-660 and you have no recent bad information, then getting your financing ahead of your purchase makes sense. But for those who are still in the process of rebuilding your best best is to go to the dealership first. I have 22 inquires now on my report that caused me to loose 20 points.

Good Luck

Re: Do I qualify for a new loan?

04Cobra — Tue, 21 Apr 2015 09:27:39 GMT

@Anonymous wrote:
Another Update.

Went to the Nissan Dealership on Saturday- Had to get an oil change. Test drove a 2015 Altima. liked it and spoke with the managers. told her upfront about the past late payments current report and asked to only submit to Nissana nd maybe one other lender. Nissan decline and Cap One who previously decline when i applied on my own.....APPROVED the interest is high as expected but I def will be re-fi in Jan 2016.

All new cards I obtained in my rebuilding would have aged plus my 2 remaining baddies will also have aged off and many inquires on my reports would have fallen off by then.

Thank for all your suggestions

Glad it worked out for you. Congrats and enjoy your new car!

Re: Do I qualify for a new loan?

Anonymous — Tue, 21 Apr 2015 14:28:26 GMT

@04Cobra wrote:
@Anonymous wrote:
Another Update.

Went to the Nissan Dealership on Saturday- Had to get an oil change. Test drove a 2015 Altima. liked it and spoke with the managers. told her upfront about the past late payments current report and asked to only submit to Nissana nd maybe one other lender. Nissan decline and Cap One who previously decline when i applied on my own.....APPROVED the interest is high as expected but I def will be re-fi in Jan 2016.

All new cards I obtained in my rebuilding would have aged plus my 2 remaining baddies will also have aged off and many inquires on my reports would have fallen off by then.

Thank for all your suggestions

Glad it worked out for you. Congrats and enjoy your new car!

Thank you. I def had a few second thoughts about it as the new payment is about $200 more than what I was currently paying on my 2006 Murano. The past two days I've been aksing myself did I make a smart decision to the point I think i'm over thinking it. But I just decided that with gardening and making a few adjustments to my current budget I can make the best out of it. I've decided I will be cancelling my cable/internet as that bill is about $130 a month for the next 6-8 months untilI can get the car re-financed and my budget back in place to give me extra cushioning.

Re: Do I qualify for a new loan?

dabrian — Tue, 21 Apr 2015 17:43:57 GMT

Be sure to pay extra every month if you plan on to refinance in six months.