COAF Denied Auto Loan Pre-Approval Due To "Presence of a high risk credit account and insufficient number of tradelines" which makes absolutely no sense as I have $21,500 in combined total credit limits and $20,000 in available credit spread among ELEVEN credit cards.
No idea what this "high risk credit account" is, I do have $74.8K remaining student loan balance out of $168K and one of my old non used credit cards is from CreditOne which I plan on closing when the AF time approaches, everything else can be seen in my signature.
It's sounding easier to buy a car with my major credit cards as a unsecured loan than to buy a car with a secured auto loan. That is crazy.
Experian FICO 8 per Experian: 725
Equifax FICO 8 per MyFICO: 724
TU FICO: Unknown (where can I get it free?)
@cashorcharge wrote:You have a high number of retail accounts and $21K over 11 cards is an average of $1800. The high number of retail cards would constitute risky.
You didn't state how much of a preapproval you were seeking, how expensive the car was and how down payment you'll be providing nor did you include income to calculate your DTI.
With the state of affairs now, while 725 is an admirable score, you may be shopping for too much car.
Just to clarify, I have about $21K of $22K AVAILABLE credit, total CC balances are around $1,500 and are always paid in full, how that is considered risky is beyond me.
The COAF pre-qual did not ask for a requested amount, I was wondering how much it would approve me for and was seeking a pre-qual amount to go shopping with.
Total gross income is between $96K and $120K
I'm looking for around a $10K to $15K auto loan with zero down.
The alternative options are to buy it with credit cards (put the bulk on the Citi and convert it it to their FlexPay) or pay a penalty to pull from a retirment account to buy in cash. I would definently use my citi double cash long before ever considering accepting a sub prime auto lender (IE Santander).
@TG101 wrote:
@cashorcharge wrote:You have a high number of retail accounts and $21K over 11 cards is an average of $1800. The high number of retail cards would constitute risky.
You didn't state how much of a preapproval you were seeking, how expensive the car was and how down payment you'll be providing nor did you include income to calculate your DTI.
With the state of affairs now, while 725 is an admirable score, you may be shopping for too much car.
Just to clarify, I have about $21K of $22K AVAILABLE credit, total CC balances are around $1,500 and are always paid in full, how that is considered risky is beyond me.
it's risky because there's a ton of lower quality store accounts without the backing of high quality bank cards to complement them, it looks weird and that's what the reason is picking up on
could just be they didn't like the high student loan balance and spit out the 'high risk credit account' because that's nicer than saying 'pay off your student loans'
but you have a decent score, so just go to a credit union and get a loan from them?
@GZG wrote:
@TG101 wrote:
@cashorcharge wrote:You have a high number of retail accounts and $21K over 11 cards is an average of $1800. The high number of retail cards would constitute risky.
You didn't state how much of a preapproval you were seeking, how expensive the car was and how down payment you'll be providing nor did you include income to calculate your DTI.
With the state of affairs now, while 725 is an admirable score, you may be shopping for too much car.
Just to clarify, I have about $21K of $22K AVAILABLE credit, total CC balances are around $1,500 and are always paid in full, how that is considered risky is beyond me.
it's risky because there's a ton of lower quality store accounts without the backing of high quality bank cards to complement them, it looks weird and that's what the reason is picking up on
Which ones are you reffering to because most of my store accounts are the major card version (V/MC/AMX) and backed by CITI Retail.
I plan on closing the CreditOne AMEX and the joke Amazon Store card soon (only opened that one for the free $80 gift card). I am considering closing the Home Depot card because $500 at Home Depot is uselsss when the main thing I'd like to take advantage of free financing on is a $2,000 all in one washer/dryer combo not to mention the HD card does not offer a major card version. Target I'm on the fence about as the limit is semi-ok. CareCredit is for vetrinarian emergencies. HEB I got for the 5% cash back but the limit is annoying and forces cycling because I spend more than $500/mo there. If I could choose I'd have the Citi DoubleCash and Chase at $10K each and nothing else. The only reason I have not closed the Chase being that the limit makes it useless is just to keep my foot in the door with Chase.
@TG101 escribió:
@GZG wrote:
@TG101 wrote:
@cashorcharge wrote:You have a high number of retail accounts and $21K over 11 cards is an average of $1800. The high number of retail cards would constitute risky.
You didn't state how much of a preapproval you were seeking, how expensive the car was and how down payment you'll be providing nor did you include income to calculate your DTI.
With the state of affairs now, while 725 is an admirable score, you may be shopping for too much car.
Just to clarify, I have about $21K of $22K AVAILABLE credit, total CC balances are around $1,500 and are always paid in full, how that is considered risky is beyond me.
it's risky because there's a ton of lower quality store accounts without the backing of high quality bank cards to complement them, it looks weird and that's what the reason is picking up on
Which ones are you reffering to because most of my store accounts are the major card version (V/MC/AMX) and backed by CITI Retail.
I plan on closing the CreditOne AMEX and the joke Amazon Store card soon (only opened that one for the free $80 gift card). I am considering closing the Home Depot card because $500 at Home Depot is uselsss when the main thing I'd like to take advantage of free financing on is a $2,000 all in one washer/dryer combo not to mention the HD card does not offer a major card version. Target I'm on the fence about as the limit is semi-ok. CareCredit is for vetrinarian emergencies. HEB I got for the 5% cash back but the limit is annoying and forces cycling because I spend more than $500/mo there. If I could choose I'd have the Citi DoubleCash and Chase at $10K each and nothing else. The only reason I have not closed the Chase being that the limit makes it useless is just to keep my foot in the door with Chase.
Not for nothing, but, before you close the Home Depot account, it may be worth your while to call in and ask for a CLI or even a one-time extension to allow for that specific purpose. It's fairly common to allow exceptions to limits for "major purchases" on lower-limit credit cards.
@TG101 Honestly , I would not even think about it too much. I brought a vehicle in 2022 and got approved with every bank but Cap One. Ended up with 3.99 with PNC and refinaced the next day with a local cu and got 1.74. Not sure where you are located but I would search up some local cu's and compare rates and then go from there. Best of luck.
