BMW FS - Will I be Approved?

[Anonymous]

Hello everyone,

I am new around here and am glad I found this community. It has really opened my eyes when it comes to credit and I'm excited to get to know some of you around here and learn more about FICO. I'd like to start with my first question; is there anyone here who has been approved through BMW FS recently? Many dealerships I've spoken to have told me BMW FS is very competitive right now and is offering really good rates. This most likely sounds like a sales pitch, but I figured it wouldn't hurt to ask those who have actually been approved through them. Here's some info about my situation:

Credit Score: Fico 8 - 657

AAoA: 2.5 years


Gross Income: $120k

Length of Employment: Two employers: One @ 1 year 8 months, the other @ 5 years

Previous Loan Experience: 3 paid off auto loans ($13k, $24k, $30k), one current auto loan (will be paid off upon sale of car - $58k) one mortgage (rental property, not paid off), one personal loan ($12k - not paid off)

Year of Car: 2015

Miles: 18,000

Purchase/Refinance: Purchase @ $75,000 including all fees

Requested loan term (XX Months): 72

DTI: 44%.

Down payment amount: $0 down is best, $5,000 max

Co-borrower/Co-Signer: Co-buyer available

Other: My current debt balance is $13k in credit cards ($18k limit, never maxed out) and a $12k loan.

I plan on paying off all of the credit cards upon the sale of my car as I have a good chunk of positive equity in it. Should I wait until the credit card companies report that my balances have been paid off to put in my application? Or will BMW FS (or other banks) see that those cards are paid off before they're reported? Can I get approved with my current debt amount and score at a higher interest rate just to secure the car, then refinance after the updated score comes in showing paid off cards? I'm willing to briefly tackle a higher interest rate until refinancing is available. I've already taken into account insurance costs, maintenance costs and gas costs - all of which are significantly lower due to hybrid powertrain and warranty.

Thanks for any insight! Better safe to ask before going for the hard pull! Happy Thanksgiving, everyone.

[Anonymous]

Just throwing this out there - my salesman says BMW FS takes 620 and up. I asked what scores they check (auto enhanced, etc). A quick forum search answered most of my other questions thankfully! 

[Anonymous]

Update: went into dealer and submitted application around 5:30pm PST. Dealer pulled credit and sent app to BMW FS, they’ll make a decision on Friday as they’re closed for the holiday tomorrow. Salesman says my credit history looks good and income looks good as well - fingers crossed!

[Anonymous]

You are definitely in the right spot for BMW FS to consider you. My direct experience with them was pretty good, though they can be known to drag their feet on approvals. The approval for my current vehicle took around three days. If you are approved, BMW FS is a great financier; very intuitive with their service. Hope you get the opportunity to experience the "ultimate driving machine". Good luck!

[Anonymous]

Thanks for the insight! This will be my 5th BMW. I’ve owned a 2003 330i, a 2004 M3, a 2011 550i, and a 2010 M6. Currently trying to buy a certified preowned i8!

[Anonymous]

Well, unfortunately I was not approved. Turns out my FICO 8 Auto score is actually a 601! The MyFICO app shows it's due to a late payment from last year, when I traded in my 550i and the dealer wrote the bank a bad check, causing account to go way over 30 days late (I later found out the dealership manager that processed my trade-in got fired... hmmm....) The account has since been paid, so I have filed my disputes and will wait to see what happens. I feel I should start a new thread about this! 

I have ultimately decided to sell the car private party (and pay off the bank) and will use the positive equity + the cash down payment I originally had saved to pay down my debt in hopes of boosting my Auto score a bit. Maybe then I will get the green light!