Chase auto

[nycsimone]

I applied for an auto loan with Chase auto yesterday. Today I received a call from them asking me if I planned to trade in my current vehicle when I purchase a new vehicle. I said yes. They said, ok thanks...we'll have a decision for you shortly.

10 minutes later the application was denied.

I applied with Chase 1 year ago and was approved for $15,000 with a 3.5% apr. Since then, a bad account dropped off and everything else has been positive including the fact that i've been banking with them for nearly 10 years and I have a credit card with a $3,000 CL with them i've never been late on.

My credit scores are all in the 690-710 range. So why the denial and why call me to ask about the trade if you're going to deny me anyways?

[nycsimone]

Sure enough....I applied with BofA right now and got instant approval for a $30,000 loan iwth a 4.09% apr for 60 months for a used car, or 3.99% for a new one.

[Remember0]

They could have denied for a bunch of reasons. They should be sending you a letter. Take a look in the Definitive Guide to Financing and Leasing to see what lenders look for.

If your DTI, income, and LTV line up, apply to like DCU. With a 675+ EQ FICO, you'd qualify for their 1.99% for 65 months deal as long as those other factors lined up. You may need to call them for a faster response and let them know you'll trade the current (so they don't count the DTI twice). Also take your trade to carmax so the dealership doesn't screw you on the trade's value.

EDIT: Congrats. I think it's worth it to apply to DCU and take that 4% down to 2%. Of course if you're buying new, the dealer will probably beat all of these with the manfacturer incentive rates.

[nycsimone]

I called CHASE and that's what they said...

My credit card utilization is around 45%, and they didn't figure out that I would be trading in my other car. So CHASE approved me at 5.05% :-(

So now I have BofA at 4.09% and CHASE at 5.05% as the 2 lowest.

Not to be stupid...but what's DCU?

[Remember0]

Digital Credit Union. They're a CU in Massachusetts that offers a good deal on auto loans. With a 675+ EQ, you'd qualify for 1.99% for 65 months with them. I'd recommend you apply to them and then buy the car.

[nycsimone]

I just pulled my Equifax and Experian reports and I come up with a 690 Equifax and 717 Experian.

[Remember0]

DCU seems to pull a different score formula, but I think you'll be alright. Your EQ seems to be somewhat comfortably above 675...hopefully their pull will be close to yours.

[nycsimone]

I got approved by DCU, but at 4.24%...much higher than the 1.24% they advertise on their website. So i'm not sure what kind of score requirements they have but BofA is the best so far at 4.09%.

[Remember0]

Whoa, they dropped it recently. When it was 1.9% for 65 months, they required a 675+ EQ FICO. I'm guessing the version they pulled for you was just under. 4.24 is their second tier.

At this point, I'd go to the dealer with what you have and see if they can't beat your 3.09% rate . Notice how I shaved one percent off...tell the dealer you have 3.09 and see what they can do for you. If you want to buy new, you'll prolly qualify for incentive rates that are like 0 or 1%.

[nycsimone]

I'm also considering a lease for a BMW...maybe a 3 series. I should be ok getting approved for a lease right?