Does this sound like an Approved Loan?

[Anonymous]

I appled for this 7 days back and now I got a reply....but I am unsure if I should accept. I am not sure if it is a FOR SURE LOAN...the bottom part confuses me a tad.

Letter States

Dear "John Doe"

  Thank you for your application for a *BANK NAME/AUTO LOAN"

    We are unable to offer you credit on the terms that you requested. We can, However, offer you credit on the following COUNTER OFFER.

Amount $7000.00

TERM 36 MONTHS

RATE 13.990%

This counter offer is subject to verification of information (such as collateral value,income assets,etc.) contained in your credit applicaiton. If this offer is acceptable to you. Please notifiy us within 30 days at the following address.

 What does that mean? It sounds like it's 100% approved then I read that and I was like huh.

 ****************************************************************

Please note this loan would be from my personal bank.

****************************************************

Some other usefull info

 I purchased my scores 11/2/2009 1:14:10 PM at the time I did that, I owed roughly  $5300.00 total across 5 Credit Cards.

Since then I have paid them off 100%---------> I am now debt free

TransUnion    616    as of 11-05-2009
Equifax    591   as of 11-05-2009

FICO Score Simulator says

Equifax 621 - 661 ***IF I PAID THEM OFF IN 30 DAYS** Which I did

FICO Score Simulator says

TransUnion 646 - 686 ***IF I PAID THEM OFF IN 30 DAYS** Which I did

****************************************

My cards were

Capital One CC1=Balance was $300.00/LIMIT=$500   now-->$0

BOA CC2=Balance was $3200/LIMIT=$3500  now-->$0

BOA CC3=Balance was $1800=LIMIT=$2200  now-->$0

BestBuy CC4=Balance was $100 LIMIT=$300 now -->$0

CHASE CC5=Balance was $100 LIMIT=$300  now-->$0

Express Card=Balance was $139 LIMIT=500 now-->$0    (THIS CARD IS LESS THAN 31 DAYS OLD)

I made all these payments This week...last one cleared today,

Message Edited by g3kk0 on 11-08-2009 04:50 PM

[llecs]

When was the inquiry from the initial attempt to get a loan from that bank?

[Anonymous]

Ummm I believe I applied 7 days ago and they replied back via letter Saturday November 7th 2009

[llecs]

If you agree with the counter offer, and were open to it, then I'd say go for it. If during the process they pull your EQ again, then your score won't take any hit due to the inquiry. FICO recognizes the need to rate shop and will lump all of your auto inquiries together as one if you pull at least within a 14 day period. In other words, your score cannot drop due to the additional inquiry. If fact, if you pulled your EQ and noticed that your CC balances are lower, I'd go as far as to tell them to pull a new report, that there were changes that were favorable to your credit score. Maybe they'll offer you a new rate and payment term.

Assuming nothing has changed and the counter offer isn't a sure bet (I'm sure it is), and if they pulled a new inquiry, you still have nothing to lose, point-wise or otherwise.

[Anonymous]

I was confused on this part though...

This counter offer is subject to verification of information (such as collateral value,income assets,etc.) contained in your credit applicaiton. If this offer is acceptable to you. Please notifiy us within 30 days at the following address.

Collateral? Well I dont own a house (lol) I am only 25...When i read that part it makes it seem like a "no" to me.

I will however stop in the bank tomm at 9am

[Anonymous]

---

@Anonymous wrote:

Collateral? Well I dont own a house (lol) I am only 25...When i read that part it makes it seem like a "no" to me.

I will however stop in the bank tomm at 9am

---

Colateral in this case is the vehicle itself you are trying to buy. In an auto loan the value of the vehicle itslef is an aspect of the laon as it "backs" the laon. You default they take it.

That being said you cannot finance 7K on a vehicle that is only worth $500.

[Anonymous]

Ahhh ok I get it

[Anonymous]

UPDATE- I walked into my bank they said they needed a few things

 

Proof of income (pay stubs)

Vehicles I am interested in

 

 

So I gave them that...a few hours later I called the bank person I was in contact with and gave something a shot. Despite the fact I have so many credit cards and Credit Report is saying I owe money on all of them. I asked her if I should print out recent info..basically because all my credit cards read at a balance of 0$ right now.

 

She said (YES!) The bank might even loan me more money and give me a better rate!!! So I am glad I brought that up. She faxed over all that info to the main branch.

 

I await a call back now.

 

 

 

[shyboy]

Please keep us posted.

[Anonymous]

I have already been approved for the 7000$

What the bank needs now is a definitive answer as to what car I want. At that point they will see about loaning me more money and or better interested rate. I expect to have a new car by this saturday