NFCU or Pen Fed auto loan—should I even try?

JustBeachy — Tue, 29 May 2018 08:35:56 GMT

I’ve been pre-approved (and reconfirmed) for an auto loan through Capital One Auto Navigator for nearly double what I’d like to spend. I have two credit cards that defaulted in late 2016 and are showing as in collections status, totaling approximately $27K. I also defaulted on a student loan which is undergoing consolidation now and is in forbearance status. My department at work had sudden layoff and I tried to stay afloat as long as I could, but going from $50K per year to $32K per year is rough. I’m currently at $42K annual income.

Using auto loan loan calculators has really been an eye-opener. I knew loan payments were interest rate sensitive, but wow... big difference in the monthly payment and total finance charges paid over the life of the loan when comparing low vs not-so-low APRs.

Depending on which bureau is reporting it, current FICO 8 is between 635 to 650. (These are the free scores, BTW).

My curent vehicle is 15 years old, has almost 200,000 miles, and repairs would cost more than the value of the car. Given my credit history, should I even try the credit unions? Or should I apply for dealer financing pre-visit (Toyota, Honda, or Kia) and hope the Interest Rate is lower than Cap One Auto Navigator? Thanks in advance!

Re: NFCU or Pen Fed auto loan—should I even try?

marty56 — Tue, 29 May 2018 09:41:47 GMT

The best time to test the waters with a local CU is now since any INQs after the first one for an auto loan won't doc you FICO points so I would try since you nevewr know. Also you can take a copy of your CR to a local CU and see what they say, they may ask you to apply but you might get an answer without applying. Worst case you can refi down the road if your credit scores will support that.

topic Re: NFCU or Pen Fed auto loan—should I even try? in Auto Loans

NFCU or Pen Fed auto loan—should I even try?

Re: NFCU or Pen Fed auto loan—should I even try?