So I found a car I want to buy, its at a good price a bit under NADA retail, and I made an offer. 2008 Ford Edge Limited with 90000 miles for 13700.
My credit report shows I have a BK7 dc June 2015, 3 credit cards totalling $6500 limit with $100 usage reporting, and 4 established student loans. I went to a local credit union and got approved for only $10,000 due to "excessive debt" which obviously surprised me. The BK7 didn't faze them, and they offered 2.9%. Thus far no decent offer has come up with the dealer either. Only Santander came up with an offer instantly, but the dealer said "it's really high, lets see what the other credit unions come back with" and didn't even tell me what it was but I assume it was worse than 2.9% haha.
I found out what the excessive debt was after looking at my report again. The student loans have an income sensitive repayment plan. I did not refinance because it would double the interest rate on two of them and reduce my average age of accounts, which I really don't need post BK7. That was all well and good and I made the $205 payment faithfully. Well, this month the renewal for the income sensitive plan came up. They were doing some changes to the website and it took me a while to get the paperwork done. The loan payment was reporting as $205 on the report I pulled prior to shopping, but had been updated since then to almost quadruple that at $750. I wouldn't give me a loan with that kind of debt and a $40,000 income either haha. Anyway I called the student loan people and they have all the paperwork, it's just processing and they have given me a one month forebearance while that happens. Unfortunately that doesn't help me get approved for THIS car TODAY.
Do any of the auto finance people or anyone else have any insight on how to get this deal done? Next month the payment should report as $200-ish again. I really liked the car though and would prefer not to have to start over and find another one.
6/15 DC BK7, starting EQ FICO score 563
2/16 FICO EQ 661. TU 653, EX 660
Current CC Accounts: Capital One QS1 500; Overstock 1300; Care Credit 5000; Barclay Rewards MC 1300; JCPenney 3500; Amazon 3500; WalMart 3500; Target 500; PenFed Promise Visa 2000; PenFed CLOC 500; NFCU Flagship 12500; NFCU Platinum 8500; Credit One 1000.
