topic Re: Denied 2nd Auto Loan in General Credit Topics

Denied 2nd Auto Loan

Society1 — Wed, 04 Aug 2021 15:31:31 GMT

Hello, my score is 720 that's to great low utilization and paying my cc's on time! I financed my mother a car(11k) back in May of this year & I went to car lot two days ago for a work van to finance (40k) that I was denied and told not eligible for 2nd car loan due to the one I just got in May.. could I get advice? On what I should do I really need my work van

Re: Denied 2nd Auto Loan

pizzadude — Wed, 04 Aug 2021 15:53:34 GMT

@Society1 wrote:
Hello, my score is 720 that's to great low utilization and paying my cc's on time! I financed my mother a car(11k) back in May of this year & I went to car lot two days ago for a work van to finance (40k) that I was denied and told not eligible for 2nd car loan due to the one I just got in May.. could I get advice? On what I should do I really need my work van

Having multiple auto loans open shouldn't be an issue, did they provide any other feedback, Scores, DTI concerns??

Re: Denied 2nd Auto Loan

Society1 — Wed, 04 Aug 2021 15:59:12 GMT

No they just said it was too early basically to place another auto loan even after I offered to put 20% down they still said I was a risk! The salesman turned the computer screen around & let me see it with my own eyes I'm like wow

Re: Denied 2nd Auto Loan

barca — Wed, 04 Aug 2021 15:59:29 GMT

Go to capital one auto navigator and see if you prequalify.

it is a soft pull and will give your rates and max loan.

Maybe your debt to income ratio is very high. but try cap one first

Re: Denied 2nd Auto Loan

Society1 — Wed, 04 Aug 2021 16:01:33 GMT

Gratitude brother thanks for that heads up. I'll try that ASAP

Re: Denied 2nd Auto Loan

pizzadude — Wed, 04 Aug 2021 16:52:45 GMT

Sounds like this is just something specific to this lender, I agree you should seek financing elsewhere.

Re: Denied 2nd Auto Loan

Anonymous — Thu, 05 Aug 2021 03:22:17 GMT

@Society1 wrote:
Hello, my score is 720 that's to great low utilization and paying my cc's on time! I financed my mother a car(11k) back in May of this year & I went to car lot two days ago for a work van to finance (40k) that I was denied and told not eligible for 2nd car loan due to the one I just got in May.. could I get advice? On what I should do I really need my work van

I don't believe this to be true. I think maybe your DTI has something to do with not getting financed. What is your DTI?

Re: Denied 2nd Auto Loan

ldkcivilservant — Thu, 05 Aug 2021 17:36:37 GMT

I had 2 loans placed with the same lender (NFCU) within 3 months of each other. If your DTI and scores support the approval, it should not be a problem. I echo the others, try somewhere else.

Re: Denied 2nd Auto Loan

Anonymous — Fri, 06 Aug 2021 00:54:49 GMT

It sure sounds like Ford Credit would grab you. Your rate will not be the lowest. Probably around 6% but as far as you not getting approved. Based on what you posted is false You would be approved by many lenders

Thanks

Mark

Re: Denied 2nd Auto Loan

805orbust — Fri, 06 Aug 2021 07:30:58 GMT

Smells fishy. Did you get hit with an inquiry? If not then thir just giving an "opinion" and we know what they are like. It would seem to benefit them as they coul whack you for more interest and benefit. I NEVER go to the dealer without my own financing. There are some here that like to explore the dealer options but not me. Bad enough I've got to buy the car from them.

Re: Denied 2nd Auto Loan

CreditInspired — Fri, 06 Aug 2021 08:41:56 GMT

I agree with others that DTI may be a factor. If it is, my recommendation would be to take the $8K you were planning to put down on $40K vehicle, and pay the majority of mom's car loan off and try again. JMO

GL2U

Re: Denied 2nd Auto Loan

Anonymous — Fri, 06 Aug 2021 12:39:38 GMT

@CreditInspired wrote:
I agree with others that DTI may be a factor. If it is, my recommendation would be to take the $8K you were planning to put down on $40K vehicle, and pay the majority of mom's car loan off and try again. JMO

GL2U

This won't help with DTI calculations at all. DTI is calculated by adding the monthly payments of all obligations on a credit report and then comparing that number against the person's monthly income. Reducing balances on installment loans does not improve DTI because it does not change the monthly obligation. If this loan could be paid off entirely, then that would certainly improve the DTI scenario.

Re: Denied 2nd Auto Loan

Society1 — Sat, 07 Aug 2021 02:25:53 GMT

Thanks for that info. Because I definitely thought the DTI would help for sure

Re: Denied 2nd Auto Loan

Society1 — Sat, 07 Aug 2021 02:27:30 GMT

It's not false why would I post something and lie? Clearly said I was not eligible for a 2nd loan because of the one I got in may even after I asked to put 20% down.

Re: Denied 2nd Auto Loan

Anonymous — Sun, 08 Aug 2021 18:43:00 GMT

I've had lenders do this to me before. With 2 cars, they see a higher chance you'd be willing to stop paying on 1 of them if you hit some hardship. In your case, it seems far less likely - but common sense doesn't always prevail.

I'd check a credit union - they seem far more concerned with only your DTI. I got a car loan, a car loan refi, and credit card all at the same time as opening an account with a local credit union this year. 2 months later, a motorcycle loan. i had a 703 f8 when opening, a 704 on the motorcycle loan.