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Auto loan advice from an Underwriter

New Member

Re: Auto loan advice from an Underwriter

Hi! Thanks for all the advice you've given so far, it's been really helpful.


I was wondering if you could explain what impact, if any, the college graduate programs offered by most brands have on the loan interest rate. I'm planning to buy a car under a college grad program. My scores are good (720+), but I don't have any auto or installment loan history. Would a college grad program make it possible to qualify for a good interest rate?

Message 31 of 37

Re: Auto loan advice from an Underwriter

My score under my signature. I got 9.1 months authorized user from my family to my credit report. And AAOA 1.7 months bc I opened 5 credit card in this year. No baddies no late used 30% total credit limit. Never finance car before. I can pay off all credit card. Total credit limit is 13000.making 60k for year. How my first card loan will be? Thank you

Message 32 of 37

Re: Auto loan advice from an Underwriter

First of all thank you very much for this, you are helping a lot of folks out with your insight.

Here is my situation:

I'm 27 but have not a very substantial credit history, with only credit cards (AAOA is around 2 yrs, with oldest tradeline about 3.5yrs). I currently have 3 credit cards, one with a 9000$ limit, another with a 3000$ limit and the last one with 1500$ which I pay in full every month. My income is around 56k/yr (W-2 employee) and my wife makes 32k/yr. My wife has a credit situation similar as mine, just a couple of credit cards, but both she and I have no blemishes on the report. I know my scores are over 720, with Experian FICO being the highest one (hovers around 750-760). Rent is 1450 a month, and we have no other debt.
We are looking at purchasing a second car in the next few months (the one we own we bought cash a few yrs ago), and we were looking for some in the 29-33k range before taxes. We are expecting to put down 5-7k of downpayment, both to get a lower interest and monthly payment.
Should we realistically expect an approval (we were thinking of applying jointly) for a loan that should come out to be 25-28k in total, or our lack of car loan history will hurt us?
Thanks again for your help!

Message 33 of 37
New Visitor

Re: Auto loan advice from an Underwriter

Hey there!

I am looking for an auto loan of about maybe 5k-10k?

I am 21 and had credit since I was 18 and my score is 718

I have two credit cards of 3k limit and a 750 limit.


I have applied for a car loan for 9k while putting 3k down. This was at a CU too.

I only make about 500 a month but could pay it off since I do have financial aid every semester

Not only that, I am looking for 5-10k loan with myself now having 10k to put down!

Is there any advice?? Thank you

Message 34 of 37
New Member

Re: Auto loan advice from an Underwriter

Hey, I have a question or situation that I would like to get your expert opinion on.  My credit scores are currently TU 647, EQ 617 and I am currently working on improving.  My auto history is so-so but I do have about 3 loans from 5 years or so that were paid off and on time, however my more recent auto loan history has some more flaws with being late. 30 and 60 days in 2009 & 2010 through Ally financial.  My other hiccup is that I had my student loans deferred or so I thought and 5 of the 6 student loan accounts were reporting late for the majority of 2010.  However they have been consolidated and since then on time every month and depleting reported balance every month.  I also have 3 secured credit cards of 1K each with low balances (10% or less) each month on time for the last 12 months. I have no collection account, but again I do have almost 50k in student loans with no other debt besides a few hundred from my credit cards. 


What I am interested in doing is purchasing a used 2010 Range Rover with low miles in the neighbor of $58K.  I plan on putting down $18K for my down payment.  I make $130k annually and have been at my job for the last 8 years.  Do you think that this is a feasible auto loan request or should I attempt to get my score up a little bit higher?  If that is the case what do you think the minimum would need to be.

Hammer23 wrote:

Good Day MyFico family,


I have been watching this thread for quite sometime and decided to see if I could lend some of my experience to help some others out there.


Here is a little of my background:


- 5 years experience as a Business Manager / GSM for a multi-line car dealership.


- 5 years experience as an auto loan underwriter / loan manager for a large national auto finance company.


Currenlty I am employed by a large national auto finance company where I make decisions on loan applications submitted through select dealerships. I manage a team of underwriters and handle esclated requests from lower level underwriters.


I must state that anything that I say here is my personal opinion and does not in any way indicate the opinion or policies of my employer. Any comments made by me are in no way a reflection on my employer or represent a commitment on behalf of my employer. My statements have not been reviewed or approved by my employer for accuracy.


So with that being out of the way, what questions do you have?



  Thank you 


Message 35 of 37
Established Member

Re: Auto loan advice **bleep**

Wife and I are looking **bleep** in 2004.


On wife, her score is 683 (Equifax also).  No baddies because mortgage only reports on me.  She has the auto loan history identical to mine (loans are joint).  What is hurting on hers is high balances on 3 credit cards.  However no lates.  Infrequently used, just trudging through to pay off old balances!  As **bleep**


AAoA is around 5 years.  Oldest credit account on record is over 15 yrs ago.


I am employed **bleep**.


Two questions:


1.  What might we expect on an auto loan with this credit scenario?  I really don't know what (if any) cash we would put down.  Definitely looking **bleep**


2.  What would a lender require in order to document self employment income?  I've seen some posts where buyers never had to show documentation, but we'd like to be prepared.

Message 36 of 37
Valued Member

Re: Auto loan advice from an Underwriter

Not sure if you're still offering advice?


My bk7 should be discharged any day now. I have $14 k in student loans but they are differed until about June 2015. My current car loan was not reaffirmed so its not being reported. I'm going to give it up since its really upside down, needs work & too small for my now family of 5 in addition my Apr on it is 22%.Unfortunately my Fico EQ went down from 623 to 609. My TU Fake is 629. My annual income in 55k per year. My husband makes 35k per yr. I don't want to add him to the loan if I don't have too. I've been working for my employer for over 10 years. Renting same house for 2.5 years. Short sale 2 years ago. One repo that was in 2007. I had another auto loan PD off in good standing but that was in 2004 so I don't see it on my report any longer. I plan to place $3k down. I'm so worried about not qualifying or getting a crazy Apr. But my mom got 9.9 with WF with a 580 fico. So who knows?! The car I want is 22k.Add Comment

TU FAKO 5/2013 605 6/2013 617
EQ FICO 5/2013 535 6/2013 623
BK7 Filed 3/29/13
Score Goal:715
Message 37 of 37