Auto Loan Preparation. Seeking Advice.

MetalguitarJames · ‎03-29-2012

Currently my vehicle is a 2000 Montero Sport Limited 4x4 with around $3,200 left on my loan with 20% interest (OUCH!). It has around 107,000 miles on it and I'm ready to trade it in and upgrade to a newer vehicle and get away from a high interest rate.

I'm not a complete newby when it comes to credit. I've raised my score considerably over the past year or so (Started at a 480) and I'm ready to try and get a decent auto loan. There's just two baddies that I think may hold me back and may not allow the lower interest financing I would like.

Current FICO Scores:

Transunion - 683

Equifax - 670

I have a small load of student loan debt (Around $32k Deferred until 2015) that shouldn't be too much of an issue. The issue comes in when I wasn't able to continue to go to school due to issues with the Post 9/11 GI Bill. I ended up defaulting on the payments and it certainly has effected me negatively. I eventually had them consolidated through Direct Loans and started attending school again.

Also Note that I spoke with customer service today at ACS and tried to get a Goodwill Adjustment after explaining the situation. He seemed like he wanted to help but I don't know what's going to happen. He said he would send the request over to their "Credit Research Team". I've scoured these forums in search of the "angel" contact within the company but unfortunately the MyFico forum members that had that information haven't frequented the forums in some time.

There's that and a Civil Judgment that I paid and does show "paid" within the report (Satisfaction of Judgment was sent in and updated). It's sort of weird though. Equifax completely deleted the record but Transunion still shows it. I have a higher TU FICO score though lol.

Here is my total account report information from MyFico:

Capital One Bank Usa Na		11/2011	$200	Paid or paying as agreed	No	Details
Us Dept. Of Education/Gl	XXXXXXXXX	10/2010	$14,250	Paid or paying as agreed	No	Details
U.S. Dept Of Ed - Direct	XXXXXXXXXXXXXXX	6/2010	$11,932	Paid or paying as agreed	No	Details
U.S. Dept Of Ed - Direct	XXXXXXXXXXXXXXX	6/2010	$6,146	Paid or paying as agreed	No	Details
Acs/Wells	XXXXXXXXXX	12/2006	$0	120 days past due		Details
Wells Fargo Education Fi		12/2006	$0	Paid or paying as agreed	No	Details
Wells Fargo Education Fi		9/2007	$0	Paid or paying as agreed	No	Details
Wells Fargo Education Fi		12/2006	$0	Paid or paying as agreed	No	Details
Wells Fargo Education Fi		9/2007	$0	Paid or paying as agreed	No	Details
U.S. Dept Of Ed - Direct	XXXXXXXXXX	6/2010	$0	Unrated	No	Details
Coastal Credit Corp	XXXXXXXXX	10/2010	$3,409	Paid or paying as agreed	No	Details
United Finance	XXXXXXXXXX	10/2003	$0	Paid or paying as agreed	No	Details
Reliant Finl	XXXXXXXXXX	10/2003	$0	Paid or paying as agreed	No	Details
Ford Motor Credit		5/2002	$0	Paid or paying as agreed	No	Details

So really the question is should I wait and try to get them to do a GW adjustment hopefully or just pull the trigger on an auto loan app?

Current Income:

Full Time Job - $33,280 per year (Been here one year in June)

Part Time Job - $6,240 per year (Was Full time here first and went down to part time when I accepted a higher paying job. I was there 5 years)

MetalguitarJames · ‎03-29-2012

I probably should have waited. I apped with Capital One's Blank Check program. I tried for $20k and got back:

- We are still processing your application and will email you
our decision within 24 hours.

BOO!

MetalguitarJames · ‎03-29-2012

Ok. I overreacted about the denial. I just got an email from them but it's not the interest rate I was looking for unfortunately.

APPROVING BANK: Capital One Blank Check
BUREAU PULLED: Not Sure Yet
CREDIT SCORE: TU 683 EQ 670 FICO
CUSTOMER STATE OF RESIDENCE: California
NEW/USED: Used
YEAR OF VEHICLE: N/A

MAKE: N/A

MODEL: N/A
MILEAGE: N/A
RETAIL/LEASE:
AMOUNT OF LOAN: Apped for $20k and was counter offered with $24k
TERM CONTRACTED: 60 Months
APR/LEASE RATE: 7.76%
MONTHLY PAYMENT: $485 per month if I use the full $24k

ANNUAL INCOME: $39k
MISCELLANEOUS COMMENTARY: I was hoping for a better interest rate than that but it happens. I'm going to see if a dealership can beat it buy shopping around. I am a member of a CU but they just denied me for a Credit Card. I don't think I'll get approved through them.

StartingOver10 · ‎03-29-2012

The underwriting criteria for a credit card and for a car loan are totally different.

Check your CU for the auto loan since its secured by the vehicle.

MetalguitarJames · ‎03-29-2012

I just app'd with USAA, My Credit Union, and Also Chase. I figured I might as well considering they should be lumped together scoring wise correct?

Results:

Chase: DENIED

USAA: Up to $22k, 60 Months, @ 6.48%

Credit Union: Under Review

So it looks like USAA has the best offer so far. I'll see what my Credit Union comes back with and go from there lol. I'm surprised I was approved. I've gone through so much crap over the past few years I never imagined I could get an interest rate like this lol.

MetalguitarJames · ‎03-29-2012

Update:

My credit union denied my citing too high utlization for revolving accounts and SEVERE DELINQUINCY. I have ONE credit card with a $300 limit. It reported at $200 as I was still trying to figure out the report date. It truly has a zero balance today. I sent them a message asking if anyone manually reviews the report because anyone with half a brain can see that it's a low limit card. Give me a break!

The delinquincy is from my student loans. Whatever.

They say you shouldn't take denials personally but considering I've been a member of this credit union for 5 years, yeah I'm ticked off. I'm done with them. I'll end up transferring my money to a USAA checking account as long as the loan goes all the way through. (All depends on vehicle chosen yada yada yada).

So yeah. I'm done ranting now lol.

Anonymous · ‎03-29-2012

Are you going to take the 6.48?

You could always check the terms of the loan and see how soon you could refi for a lower rate. I'd have to say, 6.48 isn't that bad after seeing some of the history you posted in the OM.

MetalguitarJames · ‎03-29-2012

I'm certainly going to accept it and use USAA's offer as long as a dealer doesn't come back with better financing. If they can find me a lower interest rate I'm all for it! I'm truly happy that I'm being offered 6.48% considering my history of interest rates on auto loans. It'll give me a better bargaining chip when it comes to the financing.

MetalguitarJames · ‎04-01-2012

I ended up getting a better deal through the Dealership on the Interest rate. I posted it in the Auto Loan Approvals thread.

Anonymous · ‎04-01-2012

@MetalguitarJames wrote:
I ended up getting a better deal through the Dealership on the Interest rate. I posted it in the Auto Loan Approvals thread.

That is great, congrats on your new car!

How do you like that WRX? That is a car I am very interested in. Considering that, Mustang, Genesis Coupe as potential cars when I graduate in 1.5 years.