Advice Needed: USAA/NFCU or another source

[betterdays2011]

We have good credit (scores in the 720s to I think 750), excellent payment history, but too much debt (DTI around 30) and two loans in the last couple months as part of a debt restructuring for a lower rate.  I was rear ended about 12 days ago, injured and our car was totalled.  The car held its value well but not well enough to match the replacement value.  We owed a little on the car ($3100) so part of the proceeds from total loss went to pay that off.  We need to borrow about $15000 to replace the car, and we will really need the same car becaues of the size of our family and for safety.  No doubt in my mind our injuries would have been more severe if we had been in a different car. We have found a slightly newer version of our totalled car with much lower mileage.

I applied for a loan last night with SunTrust/LightStream (our previous lender with whom we had a good history)  and was rejected.  I called them and they can't tell me why for two days but the financial info seemed right and the FICOs sounded right.  We are both USAA and NFCU members.  I am leery about applying with USAA because the credit score they show on my account page is much lower than any I see on My Fico or have seen anywhere else.  I am guessing they are using a different version.  It should still qualify for loan based on the info but given my rejection last night I am not sure.

Any insight or advice would be much appreciated before we take the next steps.   Thanks in advance.  This is so stressful.

[fury1995]

I'm surprised based on what you've said so far SunTrust rejected your application. Do you have any record of late payments internally with them (past the actual due date with late fees but not 30 days late ?)

Navy would be my next call.

[Anonymous]

+1 for Navy. They're very easy to work with.

[betterdays2011]

No late payments.  Our insurance company paid off the loan we had with them yesterday but maybe that payment hasn't actually been credited.  That is our only car loan. We won't be able to find out why we were rejected until tomorrow.  Annoying.

[Anonymous]

NFCU is very easy to deal with. you get an answer back very quickly (i applied late last night and got an approval text less than an hour later) and they just send you the check and off you go lol

[elim]

The score USAA is showing on your account page is EX Vantage 3.  They will pull EQ FICO for the auto loan.  You should have no problem financing with USAA with those scores but the DTI may be pushing their threshold.  I have no idea what that threshold actually is but mine was 20% with 680 scores and they offered me 25k@ 4% - 48 months.  I took out a 60 month loan for 4.5% (for peace of mind) and am hacking away at it.  I'm sure you can get a better rate than i did (i have a pretty hefty tax lien on my reports).

[betterdays2011]

Thanks for the input.  Since I won't be able to drive for at least another week due to my injuries from the accident, we are tabling a vehicle search for now.  The insurance paid off the loan for our totalled vehicle but it has not even cleared their bank and the loan still is on our credit report and for a much higher amount than we still owed.  I did speak to someone from Navy Fed yesterday by phone about the situation.  She was pretty reassuring and said that they can note in the file the situation about the old loan.  I

Also, I found out why we were rejected by Suntrust. - DTI.  With the old loan payment, our DTI is 42%, without it 38%.  The new loan would be a lower payment, most likely.  In any event, I am taking some time to think through all this.  This is really not the time I wanted to be borrowing money but it is what it is.

[CreditDunce]

Just in case other people read this thread later, LightStream isn't a normal auto lender.  They specialize in unsecured loans to people with excellent credit and substantial assets.   Being unsecured, you can get the cash before you actually buy the car.  They make it very convenient for their target customers.  However, if you couldn't pay for the car in cash, then they are probably not the lender for you.

[Anonymous]

Sounds like you are already working with NFCU, my experience with them has been excellent.  Best of luck on the recovery and on the car purchase.

[betterdays2011]

Yesterday i planned to actually go into an NFCU branch to apply for a pre-approval after my orthopedist appointment.  The old loan is still not showing as paid off but Suntrust said they have received the funds and we should be getting a payoff letter soon.  Unfortunately, I found out that it will be more like weeks or even longer before I will be driving so we are going to suspend our search for awhile.  I am actually relieved that I can refocus on healling and stop stressing about replacing what was a great car, and one I think saved us from worst injury.

Thanks for all your input.