Good morning! I just wanted to solicit some advice about auto loans? So, my parents agreed to trade in a vehicle and purchase a car for me, but one of them has to be on the loan. I'm a full-time student without any income, so it's necessary to have one of them on it. And, I've been reading that it is VERY difficult to obtain a loan without any sort of income verification. That being said, my CS are: 755 (EQ), 751 (TU), 754 (EX), according to MyFICO - I've purchased a car before, but it's been so long that it doesn't show up on my CR anymore, so I know that I would be considered a first time buyer.
So, yesterday, my Mom and I walked into her CU and applied for an auto loan. I asked as many questions as I could about what the process is with a joint application and what criteria they are looking for (since I have the better score and my Mom is still in the process of re-building). But, we didn't get an answer right away, the LO said that she would get back to us sometime today. (She mentioned that my CS was 762 when she pulled it), so I'm truly hoping she gets back with good news.
After we left the CU - this is where it gets really crappy - we go to the BofA accross the street, fill out the necessary paperwork, and VOILA, nothing. "They'll get back to us." About 10-15 minutes later, I got the "We are unable to approve you... email". So, I thought it was just because BofA is known to be a little stricter with their criteria, so when I get home, I do the same applications online for CapitalONE and then CHASE. AND... I still get the same messages. Denied. So, at this point, I'm not really sure what's going on? 
She doesn't have the best credit at the moment, but it's not incredibly bad. She's sitting around the 620-640 according to MyFICO - with an income of 80k. She has some degrogs, but I didn't think that with my CS it would even be a problem. I guess what I'm really asking is, what should I do now? I certainly don't like getting these denials - they really make you feel crappy. But, I don't want to walk into the dealership without any kind of bargaining chip either. Any advice?
miiki wrote:
Her debt to income may be too high. If they are considering her income then they will also consider her debt... Mortgage, other cars, credit cards, any other loans she has.
First, thank you for your reply.
That's what BofA said in their email. But, when we spoke with the loan rep, before we filled out the application, I clearly asked if that would be a concern. She said it wouldn't be, so we decided to proceed with the application. It just sucks. I've been really working hard to get my credit to where it's at, but when you get these denials, it just ruins your day.
@TC1223 wrote:
Good morning! I just wanted to solicit some advice about auto loans? So, my parents agreed to trade in a vehicle and purchase a car for me, but one of them has to be on the loan. I'm a full-time student without any income, so it's necessary to have one of them on it. And, I've been reading that it is VERY difficult to obtain a loan without any sort of income verification. That being said, my CS are: 755 (EQ), 751 (TU), 754 (EX), according to MyFICO - I've purchased a car before, but it's been so long that it doesn't show up on my CR anymore, so I know that I would be considered a first time buyer.
So, yesterday, my Mom and I walked into her CU and applied for an auto loan. I asked as many questions as I could about what the process is with a joint application and what criteria they are looking for (since I have the better score and my Mom is still in the process of re-building). But, we didn't get an answer right away, the LO said that she would get back to us sometime today. (She mentioned that my CS was 762 when she pulled it), so I'm truly hoping she gets back with good news.
After we left the CU - this is where it gets really crappy - we go to the BofA accross the street, fill out the necessary paperwork, and VOILA, nothing. "They'll get back to us." About 10-15 minutes later, I got the "We are unable to approve you... email". So, I thought it was just because BofA is known to be a little stricter with their criteria, so when I get home, I do the same applications online for CapitalONE and then CHASE. AND... I still get the same messages. Denied. So, at this point, I'm not really sure what's going on?
She doesn't have the best credit at the moment, but it's not incredibly bad. She's sitting around the 620-640 according to MyFICO - with an income of 80k. She has some degrogs, but I didn't think that with my CS it would even be a problem. I guess what I'm really asking is, what should I do now? I certainly don't like getting these denials - they really make you feel crappy. But, I don't want to walk into the dealership without any kind of bargaining chip either. Any advice?
Hi.
A couple of quick questions.
Does you Mom have existing open auto loans?
If so, how many are currently open (either individual or joint with someone else)?
Do you share the same address as your Mom?
At this point, don't worry about inquiries. Fico considers multiple inquiries of the same type within a short span as rate shopping and makes excpetion for it.
@fury1995 wrote:
@TC1223 wrote:
Good morning! I just wanted to solicit some advice about auto loans? So, my parents agreed to trade in a vehicle and purchase a car for me, but one of them has to be on the loan. I'm a full-time student without any income, so it's necessary to have one of them on it. And, I've been reading that it is VERY difficult to obtain a loan without any sort of income verification. That being said, my CS are: 755 (EQ), 751 (TU), 754 (EX), according to MyFICO - I've purchased a car before, but it's been so long that it doesn't show up on my CR anymore, so I know that I would be considered a first time buyer.
So, yesterday, my Mom and I walked into her CU and applied for an auto loan. I asked as many questions as I could about what the process is with a joint application and what criteria they are looking for (since I have the better score and my Mom is still in the process of re-building). But, we didn't get an answer right away, the LO said that she would get back to us sometime today. (She mentioned that my CS was 762 when she pulled it), so I'm truly hoping she gets back with good news.
After we left the CU - this is where it gets really crappy - we go to the BofA accross the street, fill out the necessary paperwork, and VOILA, nothing. "They'll get back to us." About 10-15 minutes later, I got the "We are unable to approve you... email". So, I thought it was just because BofA is known to be a little stricter with their criteria, so when I get home, I do the same applications online for CapitalONE and then CHASE. AND... I still get the same messages. Denied. So, at this point, I'm not really sure what's going on?
She doesn't have the best credit at the moment, but it's not incredibly bad. She's sitting around the 620-640 according to MyFICO - with an income of 80k. She has some degrogs, but I didn't think that with my CS it would even be a problem. I guess what I'm really asking is, what should I do now? I certainly don't like getting these denials - they really make you feel crappy. But, I don't want to walk into the dealership without any kind of bargaining chip either. Any advice?
Hi.
A couple of quick questions.
Does you Mom have existing open auto loans?
If so, how many are currently open (either individual or joint with someone else)?
Do you share the same address as your Mom?
At this point, don't worry about inquiries. Fico considers multiple inquiries of the same type within a short span as rate shopping and makes excpetion for it.
Hi, and thank you for your reply.
- Yes, she has existing auto loans, 2 of them. We're trying to trade one of them in because the interest rate is outrageous! The dealership really screwed them. Which is the main reason why we're trying to use my credit, so they get a better rate.
-Both of her auto loans are under her name, only one is a joint loan, with my Dad.
-Yes, I do share the same address
@TC1223 wrote:
Thank you to all that replied. I guess I just wanted to air out my grievances for those denials. But, I did just get a call back from the CU that we applied for and got an approval!!! We got 2.9% for 84 months. 😆
That is incredible!
Well done!
Now pick a car you're gonna keep for a while because those terms are extremely good!