Approved for Tesla M3 with 675 Score

[Anonymous]

I was surprised to get approved for a new Tesla model 3 back in September. I checked my experian before I applied and it was around 675 and I have been working on my credit scores. Anyway, I filled out an app via DCU to get a loan and I was denied right away. I applied at my current credit union bank and they gave me a 4.99% auto rate. I applied at US bank auto loan and was denied. Since I was already applying at a few places I took a chance and applied via Tesla Financing and Lo and behold, I got approved via US Bank (the one that denied me) at a 2.49% for 60 months.

Also during this time, I had another car that I bought in 2017 but with a 18% rate which I paid off just last week. No missed payments and feels great to be done paying it.

Question, does anyone know why Tesla Financing, which btw shops around for the rates to third party lenders, would approve me with such low rates but everyone else either denied me or approved me at higher rates? And why would US bank deny me when I applied on my own but approved it when it was Tesla? I'm trying to understand this since I'm planning to purchase a home in about a year. Thanks everyone!!

[SamsungHDTV]

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@Anonymous wrote:

Question, does anyone know why Tesla Financing, which btw shops around for the rates to third party lenders, would approve me with such low rates but everyone else either denied me or approved me at higher rates? And why would US bank deny me when I applied on my own but approved it when it was Tesla? I'm trying to understand this since I'm planning to purchase a home in about a year. Thanks everyone!!

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Telsa Financing didnt approve you, US Bank did. Telsa isn't in the lending business and doesn't do direct lending. US Bank and other banks have two channels: direct channel (you applied directly with US BANK), and indirect channel (you thought you applied with Telsa financing, but really Telsa submitted your application to US BANK and probably other banks).

Many times a bank's indirect channels are more lenient on approval terms. I have had this exact experience at Chase bank as the banker not the borrower. I'm not quite sure why. Perhaps they have some agreement with Telsa or whoever is submitting the applications. 

[dunn2500]

could be cause tesla throws US bank tons of buisness and on your own your just one guy with one loan......car dealers give banks tons of business and they want to keep that flow going.....glad it worked out for you

[atst2000]

+1 this. 

The reason "Tesla US Bank" approved you rather than regular US Bank is like the other poster said, Tesla has a contract agreement with the bank and the underwriting terms are MUCH different and more lenient than US Bank so they can sell more cars. US Bank has been know to be quite stingy (I bank with them lol) and very relationship based.
But anyway congrats hope all goes well