Showing results for 
Search instead for 
Did you mean: 

Do I qualify for an auto loan?

Community Leader
Mega Contributor

Re: Do I qualify for an auto loan?

@Justasheep wrote:
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.

That can be done. My first car was 9k financed. I did it by myself and made less money. Also only put $1000 down. Only thing was it was only 5 years old. I'm gonna guess that penfed tried to shorten up your term to about 30 months because of how old the car is and the payment took you over the DTI they wanted. 

Message 11 of 15
New Contributor

Re: Do I qualify for an auto loan?

@ through a small dealer the next state over, also I tried applying through the top lender on that list (Lightstream) and failed, looking like I may end up having to have a dealer shop me around to the subprime lenders, I'm just surprised I have a halfway decent credit score I'm puting down 25% and I make enough to afford the payments.. I just don't get it I see people getting approved for cars that cost a crapton more, what more do these guys want?



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

Take the myFICO Fitness Challenge
Message 12 of 15
Valued Contributor

Re: Do I qualify for an auto loan?

@Justasheep wrote:
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.

Have you tried a local CU? Sometimes they have first time car buyer programs

Message 13 of 15
Valued Contributor

Re: Do I qualify for an auto loan?

OP, it's important to note that car loans are secured by the collateral, the value of the car.  The older a car gets and the more miles the harder it will be for a lender to recover their money if you default.  That is why it is generally easier to qualify for a newer car than an older car.  A 10 year old car with 89,000 miles is pretty high risk for them. 


These are the kind of deals those older used car dealers either carry themselves or take a risk position on to get the buyer qualified.  Of course that comes at a cost to the buyer as they lend at the subprime level.  


This is one of the toughest situations to be in because the subprimes are really the only ones that play in this market.  You might be better off shopping for a newer car so you can get a prime loan.  

Message 14 of 15
Valued Contributor

Re: Do I qualify for an auto loan?

I think the two problems are 1) the car's age (meaning, the collateral is questionable, so the risk is higher), and 2) DTI if you add the car loan to the equation. I don't have any specific advice about how to get qualified that others have not said. The obvious ways to address the two issues are to shop for a newer car, and to pay down debt, especially the one derogatory item.


As an exasperated aside ... a 720 should be good enough. Not "a 720, but with such and such DTI". Or in my case, I've run some prequalifications that I thought I should be approved for based on my ~660 scores, and got denied for lack of credit history. It's true that I lack credit history, but isn't that part of the ~660 score? Everyone with a 660 has some reason that is their score. They will have better credit histories than me in some ways (for example, longer age of credit lines) and worse histories than me in other ways (for example, more derogatory items). Why have the score if they're going to subjectively focus on different aspects of it?

FICO Resilience Index: 66. Cards: 14/24, 0/12, 0/6. Accounts including loans: 17/24, 1/12, 0/6. At first accidentally, later deliberately, I used what I call the "thick-start" build method, which leads to heavy credit-seeking for a while with the goal of coming out of it without needing to build a thin profile for years. There are pros and cons. Thread describing method
Cards (oldest to newest)

Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $104,100, not counting the AU card. The AU card brings the total to $129,100. In March 2019, card CLs totaled $0.
CU and bank memberships: Coastal Credit Union, member since 1987, direct deposit; PenFed, member since 2019; Navy Federal, member since 2020; USAA, member since 2020; Chase Bank, member since 2020.

Closed but still on reports: American Express Delta Gold, $1,000, 09/19-10/20 | American Express Hilton Aspire, $3,100, 09/19-12/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Note: My signature is updated frequently, and updates appear on all instances of my signature including on old posts.
Message 15 of 15
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.