Approval Odds and Rate

[Anonymous]

My husband and I are both military. He makes ~55k per year and I make ~49k per year. We both are young and fresh out of college so no loan history for him and I have student loans totaling ~24k. We both have mid 700's credit scores but I'm concerned about what kind of rates we will qualify for since this will be the first car purchase for us.
Also, I just started with the military so I don't have pay stubs for the previous months.

[Anonymous]

Also, we are looking to get a 32k vehicle with 7K down so a 25k loan.

[Anonymous]

You should definitely look into NFCU or any other military affiliated credit union. From personal experience, NFCU is awesome to work with. You can speak with them via phone before you app. They offer competitive rates and good products.

HTH!!!

[Anonymous]

I've been reading the forums and the general consensus is that for a first time car buyer it is good to have a sizable down payment to show your worthiness for the loan. Is 7k high enough? I was also worried about not being able to provide proof of income but maybe if I go with a place like NFCU I can verify it with orders since I don't have an LES or anything else yet

[Anonymous]

Yes, I think NFCU will be able to offer more assistance in those situations since their customer base is military and family. I think $7K is good but I'm sure others will offer their opinion as well; I definitely cannot see it hurting your chances. I personally prefer a good down payment or making a large principal first payment to avoid being upside down.

[fury1995]

+1 Navy FCU.. You are also eligible for USAA as Active Military as well.

[Anonymous]

I personally don't put a lot down on cars if I don't have to. Especially if you can get a great rate. I don't like to take a lot out of savings if I could get a 2.5% rate or less, just in case of emergencies. That's just me, others have a different view.

I'd apply to a few CU and see what the rate is. How about PenFed are you eligible? If not, you can make a small donation (like 15 bucks) to get in. Their rates arent bad either.

[fury1995]

You really should join USAA and Navy FCU. I'd go the Navy FCU route for the auto. You won't regret it. Penfed is the alternative but they are usually the same APR's but the win goes to Navy for ease of approvals.. You are eligible for USA and Navy because you are active now. Penfed can be joined anytime but those two can be difficult if you do not stay enlisted.

[Anonymous]

With an actual 700 score and ur income without any mates or anything on credit card or any other loan.. U shouldn't have a problem getting any loan even with zero down.. U should try credit union or depending what kind of vehicle ur getting.. Some brand as special in house rates like Toyota and Honda. I wouldn't put anything down finance the whole 32000 get gap insurance through the dealership(cost more) or thru ur insurance company. Gap is for ur loan being 32000. Let's say u drive ur car for 3 months and some moron hits u ur car totaled. Insurance payout only 25000 but u still owe 30500 on loan with gap gap will pay the remaining on it so u pay nothing out of pocket. Chanc rod it happening is slim but better safe than sorry don't wanna be stuck with paying the remaining cuz vehicle upside down