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Auto Loan Approval Odds

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Visitor

Auto Loan Approval Odds

I'm thinking of buying a used cheap car. The dealer is selling it for 4k. My credit score is good: 755 TU, 750 EQ. All my payments have been on time. Even my student loan payments that I had to make when I took a semester off. I'm still going to college and I have a minimim wage job from which I make 18k a year.
I tried to get pre approved by capital one for an auto loan since it wouldn't affect my credit score. I didn't get pre approved. I'm pretty sure the reason was my student loans. All I need is 4k to 5k. That's a very small amount and I'm surprised I can't even get approved for that. I'm thinking of applying at DUC, what are my approval odds there?
What options do I have? That is if I have any.
6 REPLIES 6
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Frequent Contributor

Re: Auto Loan Approval Odds

I might talk with the local dealer where you are buying the car.  If they sell cars that price they know how to get people financed.  It's possible your auto scores might be low and those are probably Credit Karma scores you list which for me at times have been 100 points higher or 100 points lower than my actual FICO.

 

I think your low income is a factor but if you are putting a little down on such a small loan the dealer can get it done.  Just make sure it's a decent car for money and try not to be upside down on the loan or look for GAP insurance.


I love DCU but have a solid realtionship with them, decent income and slightly lower scores.  2 car loans, $5,000 unsecured loan, checking, savings, credit card.

Message 2 of 7
Established Contributor

Re: Auto Loan Approval Odds


@SkullNation wrote:
I'm thinking of buying a used cheap car. The dealer is selling it for 4k. My credit score is good: 755 TU, 750 EQ. All my payments have been on time. Even my student loan payments that I had to make when I took a semester off. I'm still going to college and I have a minimim wage job from which I make 18k a year.
I tried to get pre approved by capital one for an auto loan since it wouldn't affect my credit score. I didn't get pre approved. I'm pretty sure the reason was my student loans. All I need is 4k to 5k. That's a very small amount and I'm surprised I can't even get approved for that. I'm thinking of applying at DUC, what are my approval odds there?
What options do I have? That is if I have any.

You’re right at the boarder line for Cap1 minimum income requirement. So that also could be the reason. Are you at 18k or just below?

 

If you cannot get a loan from a credit union the dealer selling the car can get you financed. Just say no to all the extras.

BECU | Apple | Discover | Key
Message 3 of 7
Frequent Contributor

Re: Auto Loan Approval Odds

I would recommend starting the entire process by obtaining your actual fico scores. This can be done using the Experian website. It is $1 for a the trial which can be cancelled. I use it once every month to get a better view of my credit situation.

 

Based on what your actual scores are will give you a better idea of where to go next. It could be the income or you could have stuff lurking on your reports that could be rectified or fixed to make your situation more manageable. 

 

Just my 2 cents!

Starting scores - 480 - 11/05/18
Current Scores -





Message 4 of 7
Visitor

Re: Auto Loan Approval Odds



@Morpho wrote:

You’re right at the boarder line for Cap1 minimum income requirement. So that also could be the reason. Are you at 18k or just below?

 

If you cannot get a loan from a credit union the dealer selling the car can get you financed. Just say no to all the extras.




It's just below. I rounded up.

Message 5 of 7
Visitor

Re: Auto Loan Approval Odds


@armymed80 wrote:

I would recommend starting the entire process by obtaining your actual fico scores. This can be done using the Experian website. It is $1 for a the trial which can be cancelled. I use it once every month to get a better view of my credit situation.

 

Based on what your actual scores are will give you a better idea of where to go next. It could be the income or you could have stuff lurking on your reports that could be rectified or fixed to make your situation more manageable. 

 

Just my 2 cents!


I did. Experian has me at 729. I have to wait 30 days to get the FICO scores from the other bureaus.

Message 6 of 7
Valued Contributor

Re: Auto Loan Approval Odds

I agree the dealer can find financing but you may have a higher rate due to the age of the car. If you don't mind me asking what model year and mileage? DCU could be a good option, but unsure if they will do such an older car (worth a call before applying).

 

Also yes, $18k is the threshold for a lot of lenders so recommend you continue rounding up on financing apps (or include like your side hustle income).

Message 7 of 7
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