Hello,
I am in the market for a new vehicle and wanted to see what the odds of approval of a loan under terms that would work for me would be.
Credit Score: 650 in all 3 .
AAoA: 4 yrs
# of positive trade lines: 11
4 credit cards with total limit of 9000$. 1600$ balance remaining.
1 current installment loan : opened in 2016(5000$)...350$ remaining balance. in good standing.
2 closed installment loans.small 1000$ loans, paid off.
3 store cards: zero balance.
1 auto loan : in good standing 4000$ of 12,500 balance.
# of negative trade lines:not sure abt this...but 5 of the 12 have had 30 ( 8 of them across the 12) day lates in the past...most recently about 5 months ago. All these are in good standing but not sure if they would be considered as negative tradelines.
Income: 102K
Lenght of Employment: 14 months(current company) 7 years before that with previous company
Previous Loan Experience:
current car loan in good standing(still 4k open),payments continuing.total loan amount 12500 in 2015.
no collections,charge offs etc.
Debt-to-Income (DTI): not sure
Year of Car: 2018/2019
Miles:
Purchase/Refinance
urchase
Requested loan term (XX Months):60
Down payment amount: 4000$
Co-borrower/Co-Signer: no
Other:
I am looking for a loan amount of around 22k. I am pre approved on Capital one with 5.2 APR .
I applied with DCU(have a 5000$ Credit card with them) and was not approved. no explanation given, rep on the phone said, cannot be approved at this time. Assuming the few 30 and 60 day lates on this credit card are the reason. I expected to be approved for a certain lower amount and not a rejection.
With just the Capital one preapproval in hand I was fairly confident of getting approved around that APR with other banks/CU. With the DCU rejection, I am not very confident now. I do not want to go into the dealership after finalizing the vehicle and then getting a 10-12% APR for the 22k loan on a 26K vehicle. I can go another 2k/3k downpayment but do not want to unless pushed.
Looking for input if it is realistic to expect an APR in the 4-6 range with this Credit history. Also if I will be approved by any in the first place.
Thanks.
5% is not a bad rate especially for not having perfect credit.
I have been happy with my Cap One car loan (2.49% for 72 months).
It was painless and no paperwork submitted and no down payment.
Also, Cap One interest rate varies depending on how good the car deal is.
I searched the entire state for a specific new car, negotiated price before even test driving.
Walked in, told them Cap One only, no issues, no BS, no extra inquiries.
Maybe you can get better than 5% through manufacturer financing on a new car promotion.
