Auto Loan Approval with Open Tax Lien - SUCCESS w/ Chase

[Shann0n_marie]

I have pre-approved with Cap 1 at 6.95% - 10.95% depending on the car, loan term, loam amt etc.  I have an open $32k IRS tax lien on my credit from 6 years ago.  I am making payments on it.

Who is tax lien friendly?  I have a perfect payment history with all creditors for past 26 mos or so, all CO's and collections have been paid, etc.  Only 10% revolving balance -- high income, low DTI but I am wondering if I have any chances with the Special Financing offers with like NIssan or other car makers?

I screwed myself 3+ years ago buying a car that I had a 25% interest rate on because I couldn't get anything else and needed a car... that car is paid off now and my credit has improved SIGNIFICANTLY and 100+ points since that fiasco.... I want to make sure I'm not just assuming I can't get better than Cap1.  I have 3 paid car loans on my credit with perfect payment history.

Thanks for your help in advance! 

[fury1995]

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@Shann0n_marie wrote:

I have pre-approved with Cap 1 at 6.95% - 10.95% depending on the car, loan term, loam amt etc.  I have an open $32k IRS tax lien on my credit from 6 years ago.  I am making payments on it.

Who is tax lien friendly?  I have a perfect payment history with all creditors for past 26 mos or so, all CO's and collections have been paid, etc.  Only 10% revolving balance -- high income, low DTI but I am wondering if I have any chances with the Special Financing offers with like NIssan or other car makers?

I screwed myself 3+ years ago buying a car that I had a 25% interest rate on because I couldn't get anything else and needed a car... that car is paid off now and my credit has improved SIGNIFICANTLY and 100+ points since that fiasco.... I want to make sure I'm not just assuming I can't get better than Cap1.  I have 3 paid car loans on my credit with perfect payment history.

Thanks for your help in advance! 

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Some captive finance lenders may overlook the open tax lien.

You already have the Cap One approval.

Just use that to shop.. go find a car you want based on your current approval.

When you do apply via the dealer. Don't reveal your rate. Just tell them to give you their best.

[6speed8]

Spit-balling here. I don't know your income situation but have you looked into the "is it possible" realm of an Offer In Compromise with the IRS ? I had a lien because I was an early victim of Refund Fraud and they treated me like the criminal rather than the victim. After a few years of getting nowhere, the OIC helped in my income situation because I became disabled during the battle.

[NLYTN]

I have two liens and I was approved for 39.3k through cap 1 (did not use). I applied through Light mStream (Suntrust) and was denied. Went to the dealership and received an approval from Suntrust on 45k. Income was around 54k. Auto scores ranged from 720-742. Hope this helps. Good luck... I will be rooting for you !!!

[Shann0n_marie]

Ok so I was approved with Cap 1 for an interest rate from 6.95% - 10.95  but after applying for multiple CU's and getting denied - I found the car I wanted and applied for Mazda Financing and was approved at a 3.75% interest rate, with Tier 5 credit - they pulled EX Auto 2 scores and I have a 648.  I was financed for about $31k, $116k/yr income, 20% DTI and they didn't ask for proof of income docs.

And, now we know that Chase is ok with open tax liens.    And I loveeeeee my new baby.   Thanks everyone!

[Gonzozap]

And if anyone wants a decent credit card with an open tax lien, try Discover.  They approved me with a 6 figure Fed lien - $3K.  Denied me for the 0% transfer card, but approved me for the regular card.  The letter was amusing.  It listed all these reasons why I was denied for the card I wanted, but then said, "Oh, but you can still have this one."  I don't get the logic, but hey, I'll take it.

I will soon be working to get the lien removed.  The SOL is about to expire. Praying.