topic Re: Bad credit, charge offs, but pre qualified for Cap. One in Auto Loans

Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Fri, 07 Feb 2020 18:45:01 GMT

So as stated, I have terrible credit, mid 500's across the board, and 5 charge offs. My credit history is about 4 years old. My car is close to death, and I've got a great paying job now. I'm paying as much as I can into my open accounts, and within the next week will have my debt to income ratio down below the recommended 30%. I had a cap one card, and although it is now closed, at least has decent payment history, and not another charge off. I learned of the cap one navigator on this site, and gave it a shot. I've been pre approved for 33k, and sent in the pay stubs they've asked for. I'm still worried that when I go to the dealership I'll be denied.

Has anyone every been pre approved, and denied? Any other in site would be greatly appreciated.

I have raised my score 50 points give or take in the past few weeks. I am just now figuring out how this credit stuff works.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Sat, 08 Feb 2020 13:05:34 GMT

Update, I talked to someone at capital one to verify my employment. She said the offer was definitely real, as long as everything matches with my application. I guess I was sceptical given my credit history. I guess we will see when I go to the dealership.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Sat, 08 Feb 2020 19:32:51 GMT

Make sure to look at your interest rate. And make sure you could afford the monthly payments based on that interest rate.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Mon, 10 Feb 2020 11:40:40 GMT

Thank you

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Tue, 11 Feb 2020 23:07:14 GMT

Such a roller coaster. So cap one took back the pre approval,and denied me. I sent in my pay stubs as requested. I needed to make 1800 monthly. I sent in 3 stubs, I get paid bi weekly. The my gross was 1400, 1200, and 1100. I make over the 1800 monthly, because my pay rate includes tips, and commission, they only accept my hourly rate. I make more in tips and commission than I do hourly.

Ive never bought a new car, I've only paid out right for pieces of junk.

Can anyone tell me if all finance company's do this? Anyone who work on tips and commission successfully used that as part of your monthly income?

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Wed, 12 Feb 2020 08:37:36 GMT

I'm sorry this happened to you. I would be upset, too.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Jnbmom — Wed, 12 Feb 2020 08:45:32 GMT

Unfortunately I am guessing lenders most of the time look at your hourly rate and base off that. Tips and commission can vary I suppose.

You mentioned your scores are low correct? If they are in the 500's, even if you do qualify you are going to get an awful rate. I would try to get your scores up a little bit first and try to find a lender who will include your tips/commissions.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Wed, 12 Feb 2020 11:25:38 GMT

Do you go to auto auctions?

I used to do that. You can get decent cars that way. One car lasted like 7 years.

I do understand you want to get better cars.

You seem like a nice person. If I knew you, I would want better for you.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Wed, 12 Feb 2020 11:27:53 GMT

If you get a medical billing certificate----or something like LPN or X-ray technician, you can certainly make more than $1,800 a month.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Wed, 12 Feb 2020 15:28:22 GMT

I love my job, and I definitely don't belong behind a computer. I break them lol. I'm a cosmetologist, and love the interaction with my guest. I make decent money, when everything is factored in. I was added recently as a authorized user, but that hasn't reported yet. I cut up the cards so no chance of using them, and will add a longer credit history, and about 12,000 of revolving credit to my reports. I am hoping my current vehicle will make it until the end of March beginning of April, and by then hoping my score will be in at least the low to mid 600's. In the past month I've raised it just shy of 50 points. I will be getting a tax return so I plan on putting that on my credit card, which has a 1900 balance. Up until 35 I always used cash, and got my first card at that age. A few more lower credit card offers came in, and I got those too. The lower ones charged off, I couldnt believe how much they wanted, and not knowing better, just let them go. About a month ago, I really started looking into my credit, when I realized my car was dying, and credit was a major factor in getting a new one. You all are absolutely amazing, and I've learned so much on my fico in the past month. I'm nearly 38, and I haven't lost hope, better figuiring it out now, than never. When I was originally quoted from cap one, my interest was roughly between 10-13%. Now because of of the issue with only accepting my hourly they took it back. I realize that is still fairly high, but something I can work with. I just don't want it to be 15-20% or more.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Wed, 12 Feb 2020 15:55:08 GMT

I do understand you love your job. I'm not "high on the totem pole" myself. I'm a data-entry clerk. I am more fortunate for my health benefits than I am for my salary.

Here in NYC, one cannot live on $1,800 a month, whatsoever. I guess I was speaking more from the viewpoint of a New Yorker.

I'm really sorry Cap 1 welched on their offer.

I feel like you're more "on the ball" than I am, actually. You're doing very well, you are very diligent about getting your credit better, and it will reap benefits soon.

Have you been to an auto auction? I once got a car in one of these places for $1,400 (though this was back in the late 90s). That car lasted about seven years, including hitting a deer up in Canada.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Thu, 13 Feb 2020 12:28:46 GMT

No I haven't, I'm in Orlando. We have very large auto auctions here. I drive by them daily. I'm not sure how that even works though, I always thought you had to have a dealer's license to go into it the actions.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Thu, 13 Feb 2020 13:38:36 GMT

They are open to the general public. I've gotten three cars from them.

Make sure to bring someone with you who is very knowledgeable about cars. Very few cars have more than 60-day warranties.

Most of the time, cars are sold before the auction.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Thu, 13 Feb 2020 13:39:54 GMT

Especially police auctions. You might get a great car that was recently repoed.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Thu, 13 Feb 2020 17:32:41 GMT

Thanks!!! I'll look into that. My fiance is great with cars fortunitly, thats why my van is still puttin along. I'm happy to announce I gained another 6 points on my experien report as well. Who would have known making payments does that, lol, just joking. Man of man, if I only knew then what I know now. I knew not paying was bad, but just didn't realize the magnitude of the consequence. What really stinks are my charge offs are from December, and January. Always a day late, and dollar short. Lol

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Thu, 13 Feb 2020 17:45:05 GMT

Most people don't know much about credit----until they really research it.

I certainly didn't know anything about credit until I went for my own mortgage.

I hope everything goes well at the auto auction.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Thu, 13 Feb 2020 17:49:17 GMT

I feel like if you can get to 620, you will have a few more opportunities to get credit products. That's also the minimum FICO for a conventional mortgage loan.

Then, I would shoot for 680. Then, 700.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Fri, 14 Feb 2020 01:39:52 GMT

One thing with capital one and not sure if this pertains to you, but if your fiance is on your bank account, regardless who deposits the money, Cap1 will automatically split it between 2 people on the deposits.

My wife is on mine and when I fianced my truck through them, even though all of the deposits were in my name, they still split my income into 2 because 2 people were on the account. I had to move all of my money to another account without her on it, get my truck, then split the money and put some back into the other account that she only uses "when needed" because I travel for work.

Good luck finding an auto loan, but if you have to, find a buy here pay here, there are some that do report to the credit buearu's or try to seek out cheaper starter cars, like used focus, kia rio, etc. generally them being so cheap, they aren't hard to get financed, even if the loan is considered unfavorable. You bite it now and better yourself in a few years.

Re: Bad credit, charge offs, but pre qualified for Cap. One

donkort — Fri, 14 Feb 2020 02:03:40 GMT

My personal opinion is that paying $3-4000 for a decent car in cash is better than financing from a "buy here, pay here" sort of place. The interest rates at these sorts of places are very high----and they really get aggressive if you don't pay. It's not quite the Mafia----but it can seem that way.

And while you have that car, and while you have your husband who is a decent mechanic, you could continue to build up your credit.

Re: Bad credit, charge offs, but pre qualified for Cap. One

Anonymous — Fri, 14 Feb 2020 02:08:50 GMT

That is the other side of the sword, one I agree with also. I was thinking purely from trying to start, although bad, to get the credit building back up... But they could pay cash, then put what would go towards interest on the high interest loan, towards paying their charge offs and getting them deleted.