topic Re: PenFed Denial...Recon? in Auto Loans

PenFed Denial...Recon?

Anonymous — Sun, 23 Aug 2020 23:15:32 GMT

Hi Everyone,

Just applied for a PenFed Used Auto Loan and saw they denied it: "Limited Credit Experience." They pulled EQ when I opened a savings with them a few days prior and 1.7k in the account. Here were the stats:

AAoA: 2Y 11m

Oldest: 3Y 10m

Util: 1%

Inq: 3

0 baddies

FAKO 774

6 Cards, 1 Alliant Loan

CL: $66,350

Income: $75,000

Was asking for a maximum $20,000 loan. Should I recon? I read a previous thread where a loan officer said they want to see at least 5 years on your oldest account.

Re: PenFed Denial...Recon?

Harvey26 — Mon, 24 Aug 2020 01:17:14 GMT

@AnonymousI would try with alliant or chase looks like you have an existing relationship with both. You can also try the Cap One Auto Navigator. Is this your first auto loan ? Do you have any local credit unions in your area I would also look into them.

Re: PenFed Denial...Recon?

Anonymous — Mon, 24 Aug 2020 02:46:50 GMT

This would be my first auto loan. Will try calling PenFed tomorrow to discuss recon before moving on to Chase or Alliant with another HP.

I'm based in NYC, so I don't have a ton of other options for CUs near me.

Re: PenFed Denial...Recon?

Anonymous — Mon, 24 Aug 2020 15:23:18 GMT

Update, PenFed said they can't recon because the information was correct in my report and I did not want to re-apply with another applicant. So, I closed my account with them.

Applied with Alliant and was declined due to too many inquiries (2). I'll try Chase, but it looks like I will need to take whatever 15% APR a dealer will give me. Feeling defeated.

Re: PenFed Denial...Recon?

Credit4Growth — Mon, 24 Aug 2020 16:23:42 GMT

@Anonymous wrote:
Update, PenFed said they can't recon because the information was correct in my report and I did not want to re-apply with another applicant. So, I closed my account with them.

Applied with Alliant and was declined due to too many inquiries (2). I'll try Chase, but it looks like I will need to take whatever 15% APR a dealer will give me. Feeling defeated.

Wow, they denied you because of 2 inquiries... and DCU maybe because your oldest account ia not 5 years. Lendind is rwally starting to look pretty bleek.

Cap 1/Chase- I presume you have been with chase for close to 3 years?

Re: PenFed Denial...Recon?

Anonymous — Mon, 24 Aug 2020 20:50:41 GMT

@Credit4Growth, I don't want to use Chase because they don't work with any of the independent used car dealerships in my area to facilitate a loan. I am going to see what rates the dealer provides me, then I will check out DCU.

Re: PenFed Denial...Recon?

Harvey26 — Mon, 24 Aug 2020 22:16:13 GMT

@AnonymousI would not recommend doing that. They probably will shot gun your credit for no reason. Have you asked what lenders the dealer works with?

Re: PenFed Denial...Recon?

Credit4Growth — Mon, 24 Aug 2020 23:09:26 GMT

I would agree. Do not do that, many of them will pull your credit until it feels like they pull it anymore. You really do not need that kind of a hit to your younger profile.

Re: PenFed Denial...Recon?

Credit4Growth — Mon, 24 Aug 2020 23:21:02 GMT

@Harvey26 wrote:
@AnonymousI would not recommend doing that. They probably will shot gun your credit for no reason. Have you asked what lenders the dealer works with?

I would first find out this ^^^ and I would look into the few CU in and around NYC or near wherever you rest your head. There really are at least a hand full around you... Jersey, L.I. or jusr pick a borough. Just ask Siri or Google

Re: PenFed Denial...Recon?

Anonymous — Tue, 25 Aug 2020 07:17:49 GMT

Agreed with everything everyone has said and would suggest trying the Capital One auto navigator prequal so you can get an answer with only a soft pull. Plus they're a good first loan company.

Re: PenFed Denial...Recon?

ccquest — Tue, 25 Aug 2020 14:36:00 GMT

I say sign up for a free Experian account, pull your three FICO 8 scores and your mix of EX scores for free and see where you actually stand.

What sort of car is it? If it's new, you might be able to get in with the manufacturer financing arm at a low rate. If it's used but CPO, maybe same thing.

As long as the pulls are all within a 45 day time period, they are pooled together as a "single" inquiry for scoring purposes. As long as they are within 30 days, they do not impact the score. Check the scoring primer for more info. So beyond caring about how many inquiries show on the report and future credit seeking (although they also care about the type of credit you go for, not just that you are getting tons of inquiries), it doesn't really matter for your score whether you're selective or they shotgun it to all the lenders in the world.

Re: PenFed Denial...Recon?

ridgebackpilot — Tue, 25 Aug 2020 22:17:15 GMT

I agree with the others here that you shouldn't let an indy dealer shop around for loans on your behalf. God knows what you'll get if you allow that!

Have you tried Navy Federal Credit Union? My recent experience with them was far better than my treatment by PenFed CU. I'll wager Navy would approve you if you can qualify for membership.

Re: PenFed Denial...Recon?

Anonymous — Wed, 02 Sep 2020 16:11:07 GMT

Crap1 gave me 10%+ APR. I don't qualify for Navy, and the car I want is not a CPO.

Re: PenFed Denial...Recon?

Harvey26 — Wed, 02 Sep 2020 17:39:49 GMT

@Anonymous are you able to find the same vehicle at maybe a more reptubale dealer. That would be able to secure you financing a bit easier.