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Do I qualify for an auto loan?

Justasheep
New Contributor

Do I qualify for an auto loan?

Credit Score: 720

AAoA: 8 months

# of positive trade lines: 2

# of negative trade lines: 1 very small debt $180

Income: 25k

Length of Employment: 4.5 years with current employer

Previous Loan Experience: none

Debt-to-Income (DTI): 24.8%

Year of Car: 2009

Miles: 89k

Purchase/Refinance: Purchase

Requested loan term (XX Months): 48

Down payment amount: 2k

Co-borrower/Co-Signer: none

Other: denied by penfed reasons were income insufficient for amount requested (6.2k) and limited credit experience, did not counter simply asked if I had a cosigner.


Starting Score: 510
Current Score:746
Goal Score: 800


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14 REPLIES 14
Shooting-For-800
Senior Contributor

Re: Penfed Auto Loan Denied

Check Cap One Prequal?

 

I am not a fan of PenFed.

 

Navy Fed?

 

GL!

 

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2021.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

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Message 1 of 15
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Do I qualify for an auto loan?

How much is the car you want? More than likely, it took you over the acceptable DTI which is why penfed denied you and asked for a cosigner. If the financed amount takes your DTI to around or above 35%, you're gonna have a tough time without more money down or a cosigner.




Message 3 of 15
Shooting-For-800
Senior Contributor

Re: Do I qualify for an auto loan?

If your only negative is $180, I would get rid of that first.

 

Check Cap One.

 

BTW, the car is 10 years old, that is not going to help the situation.

 

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2021.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

5% Rotating - Discover                         5%-20% - Amazon & Lowes                   3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl            4% Dining & Entertain - Savor               3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything - Flagship, Synchrony, Evergreen, & Venture



Message 4 of 15
Justasheep
New Contributor

Re: Do I qualify for an auto loan?

Amount financed was only $6,200, also planning on getting that taken care of soon, I will pay that and chat with capital one I already have a card with them.


Starting Score: 510
Current Score:746
Goal Score: 800


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Message 5 of 15
pinkandgrey
Community Leader
Senior Contributor

Re: Do I qualify for an auto loan?

I’m going to swim against the current here lol. I’m not saying this is the best situation in the world, but it’s my personal experience. I once got a loan-without a cosigner- for an 11 year old car that cost 10k. My interest rate wasn’t terrible at 5.49. The income I listed was 17k. My DTI ratio was pretty low, to be fair, but what I’m saying is that just about anyone can get approved for a car loan. The terms and interest may not be good though. And before everyone comes down on me, of course I understand that just because one CAN get a loan doesn’t mean one SHOULD. Just my experience. Carry on.
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Message 6 of 15
Justasheep
New Contributor

Re: Do I qualify for an auto loan?

So I just applied to the capital one pre qualify auto navigator thing and it failed :/


Starting Score: 510
Current Score:746
Goal Score: 800


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Message 7 of 15
pinkandgrey
Community Leader
Senior Contributor

Re: Do I qualify for an auto loan?


@Justasheep wrote:
So I just applied to the capital one pre qualify auto navigator thing and it failed :/

I didn’t qualify for anything through that tool either when I bought the aforementioned car. Don’t get discouraged. 

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Message 8 of 15
Morpho
Valued Contributor

Re: Do I qualify for an auto loan?

The easiest way for someone in your situation to get an older car financed is to finance where you are buying the car. Most outside finance companies will have a hard cap of 10 years on the car age. (Are you buying from a private seller?)

 

You can check these other places https://www.nerdwallet.com/blog/loans/best-car-loans-for-good-fair-and-bad-credit

 

Message 9 of 15
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Do I qualify for an auto loan?


@pinkandgrey wrote:
I’m going to swim against the current here lol. I’m not saying this is the best situation in the world, but it’s my personal experience. I once got a loan-without a cosigner- for an 11 year old car that cost 10k. My interest rate wasn’t terrible at 5.49. The income I listed was 17k. My DTI ratio was pretty low, to be fair, but what I’m saying is that just about anyone can get approved for a car loan. The terms and interest may not be good though. And before everyone comes down on me, of course I understand that just because one CAN get a loan doesn’t mean one SHOULD. Just my experience. Carry on.

You're completely right, anyone can be financed. Toyota prides themselves on being able to finance anyone in house. You might not like what's offered, but it can be done.




Message 10 of 15
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