Denied with NFCU

[theo78]

I just had a denial for a auto loan with NFCU. Scores around 700 with a chapter 7 in Nov 2020. Rebuilt with 4 credit cards with perfect payment history, utilization around 38% at the moment. Had a auto loan with PENFED included in the BK, but I kept the car and continued to make payments. They never formaly "reafirmed the loan, it just shows as included in BK on my credit report. 3 or 4 previous auto loans on credit report, all with no late payments. I applied for $65,000, income of $115,000 with a aprox 20% total DTI. In the on line application it doesnt take in to account that I will be trading my curent truck in and will have aprox $30,000 in equity/down payment. Purchas price would be about $86,000 with about $30,000 down. Total loan would be between $55,000-$65,000. I have a credit card with them that started as a secured post BK, graduated to unsecured and only has a limit of $2000. Balance is like $400 paid on time for the past 2 years. I would think 2+ years after a chapter 7, clean post BK history with a good DTI and $30,000 down I should be able to get a relitivly decent loan at this point. I would rather have somthing solid vs going to the dealer and being at the mersy of their finance department trying ot make money off of me.I hear everyone having such good experience with NFCU, should I call to ask for a reconsideration? Any other lenders i should look at? 

[Gladius]

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@theo78 wrote:

I just had a denial for a auto loan with NFCU. Scores around 700 with a chapter 7 in Nov 2020. Rebuilt with 4 credit cards with perfect payment history, utilization around 38% at the moment. Had a auto loan with PENFED included in the BK, but I kept the car and continued to make payments. They never formaly "reafirmed the loan, it just shows as included in BK on my credit report. 3 or 4 previous auto loans on credit report, all with no late payments. I applied for $65,000, income of $115,000 with a aprox 20% total DTI. In the on line application it doesnt take in to account that I will be trading my curent truck in and will have aprox $30,000 in equity/down payment. Purchas price would be about $86,000 with about $30,000 down. Total loan would be between $55,000-$65,000. I have a credit card with them that started as a secured post BK, graduated to unsecured and only has a limit of $2000. Balance is like $400 paid on time for the past 2 years. I would think 2+ years after a chapter 7, clean post BK history with a good DTI and $30,000 down I should be able to get a relitivly decent loan at this point. I would rather have somthing solid vs going to the dealer and being at the mersy of their finance department trying ot make money off of me.I hear everyone having such good experience with NFCU, should I call to ask for a reconsideration? Any other lenders i should look at? 

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In before many others recommend it, "Wait untill you get the denial letter from them in the mail".  I know it sucks, but that is the only way you will get the denial justification.  You can try Penfed and I think they will do a "soft pull" to see if you are pre-approved.

[fury1995]

@theo78  New or pre-owned? What is your time table?

Everything appears in line with your DTI, LTV etc.. There are several sources for previous BK applicants. Can you wait for your decision letter or do you need to move asap?

You may have to actually apply with a loan underwriter if you go through Penfed. A preapproval may produce a positiove result that doesn't pass or vice versa. I recommend trying CapOne Auto Navigator for a preapproval. They are very forgiving with previous issues, including bankruptcys. Their rates are score based.

I know you don't want to go through a dealer for financing but that is always the back up option. The dealer will have more available avenues with indirect lenders, especially through their captive sources. At the very least, you will have more options for comparison. 

[dunn2500]

can always refinance too at later date

[AdamH83]

2 things to say in regards to this. I am a finance manager at a GM store. I spend all day calling in credit and looking at it. 

1. NFCU rates are high. I am a veteran myself and went through CAP one auto for my own personal auto loan because of the rate. 

2. do you use the monthly score off of here ? that will give you a pretty good indication of where you may fall. 

But banks are not buying things too deep right now. I had a guy with a 801 credit score and 20k down get declined by his own credit union wednesday morning on a 100K yukon. Makes 10K a moth with 900 going out!

its a mad mad world right now. 

what kind of vehcile are you looking to purchase ? I can tell you that all GM stores I have worked at pull a fico auto 9. Some banks still use auto 8, some use vantage 4.0. Some pull 2 scores. 

Based on my experience I would try to use capital ones auto navigator. The rates we see come through there are fairly accurate. Also if you do that the dealer cant mark the rate up on you to make any additional back end money. But i would advise the warranty. It is so much cheaper on a new car its literally stupid not to buy it for a piece of mind on a 80K vehicle. please reach out with any questions!

[Dadof31978]

has the obvious occurred to you...NFCU is doing you a favor...lets see you filed Chapter 7 BK < 3 years ago...now you are trying to borrow $65k on an income < 2x that income...even at 0% interest which isn't possible at 84 months that's $775 per month...so your income is $9600 per month, then you have taxes etc so lets see $7500 take home...that's too high...now you have interest and hopefully you aren't really doing 84 months...so you are really looking at > $1000 per month car payment....that's too high of a payment..you will go broke again..it's a horribly stupid decision on your end.