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Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

JDB0822
New Visitor

Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

I bought my wife a truck in March, financed with Citi Financial at 11.7%
 
Now I need a vehicle (need better MPG!), applied to Cap one, denied.  Applied to my CU of 20 years, denied.  Up2Drive, denied.  No one would approve me.  I added my wife (really crappy credit) to my app, hoping someone would see 2 people, therefore allowing 2 loans.  Only Roadloans approved me, at 20.39% for a $13,000 loan at 72 months.
 
My scores range from 550-600 on the 3 CRA's. 
 
Is there any hope for doing better than this?
Message 1 of 8
7 REPLIES 7
Sushi
Contributor

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

Unless you can fix your credit, I doubt you will have much luck. What it is that is keeping your score so low or reasons for rejection?
 
To be honest, if you just need a car for good MPG, you don't need to spend 13k Smiley Wink.
Message 2 of 8
WhirledPeasPlease
Moderator Emeritus

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

You also have to consider that taking out a loan to get a car with better mpg could be considered throwing good money at bad.  Is your current car PIF?
 
Sure, gas is expensive, but so is financing an automobile - especially at a high IR. 
 
I know it's hard to hear, but with your combined scores, you're going to take a hit in the interest department.  In your case I have to think it would be better to try to save up a couple thousand dollars and buy a little used Neon or something.  (I have a friend who did this back when gas went over 2 dollars a gallon.  She parked the mommy-van and used the little beater car to drive back and forth to work.)
 
Good luck with your decision!
~*~*~*~*~*~*~*~*~*~*~
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 3 of 8
JDB0822
New Visitor

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

I drive 105 miles round trip for work each day, 6 days a week.  I have a Ford Explorer that is paid for, (1995).  At 18mpg hwy, you do the math.  I am spending $600 - $700 a month in gas.  Thats a huge expense.  You simply don't save money each month spending that, not too mention every month, that number grows.
 
If I bought a car with 36mpg hwy, my expense would be cut in half.  Any car payment less than the difference, and I figure I am ahead of the game.
 
Also, 105 miles a day, realiabilty becomes a factor as well.  My explorer as 195,000 miles on it.  If it was a toyota, no big deal, but its a ford.  Its life is surely limited.
 
I also don't want to spend 13K either.  Loan was approved for 7,500 - 13,000.  I intend on trying to be near the lower level.
 
Whats killing my scores seems to be the DTI now with the 1st car loan I grabbed in March.  My scores were around 600 - 640.  Now, they have dropped to 550-600 because of that loan.  TU is my best report, but can't seem to find anyone that would pull it, they all pull EX or EQ, the 2 lower ones.
Message 4 of 8
WhirledPeasPlease
Moderator Emeritus

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

I hear ya.
 
One of the main reasons I'm moving is to get closer to my job.  I end up driving about 80 miles a day, with lots of stops and starts.  My current car gets about 22 mpg and I feel like an idiot every time I pump 70 dollars into the gas tank.  My new commute will be around 55 miles, but with fewer stops.  The trip also gets cut almost in half (from 40 min to 25)!
 
I'm glad to see that you worked the numbers to show how a car payment on a second, err third, vehicle will essentially pay for itself.
 
You might try looking at whogavemecredit.com to see if an auto lender in your area pulls TU. 
 
Again, good luck!
~*~*~*~*~*~*~*~*~*~*~
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 5 of 8
debtisgood
Valued Contributor

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

Installment loans don't lower your score that much for util. Do you have high utility on your revolving accounts? If you can pay that down your scores could go up as much as 50 points if you have the cash to do it.
 
If it is baddies you need to hit the GW letters and PFD letters in full force.
 
 
Message 6 of 8
marty56
Super Contributor

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?

Worst case you may be able to refi in the future.  I have never done that but I have seen posts here from people who have done so.
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 7 of 8
Mythic850
Contributor

Re: Denied everywhere, only approved with Roadloans at 20.39% !!!! Any hope?


@debtisgood wrote:
Installment loans don't lower your score that much for util.




Util may not lower it that muuch, but how much would the fact that it's a new account lower it?

Conversely, I have an autoloan from 7/31/07. How much of an increase should I see what that account stops being 'new'?
Message 8 of 8
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