First time auto loan, will existing personal loan cause issues?

[RedundantCredit]

I've never had an auto loan before, only vehicle I ever had was purchased used in cash but I've driven it to death so I'm trying to understand the odds of approval for my first auto loan for $35k, possibly with NFCU.

I have a $25k personal loan with AmEx where I still owe $15k, DTI is 9%, no credit card debt, scores are below. I assume based on my low DTI that I would be approved somewhere but I tried previously to get that personal loan through NFCU and they wouldn't approve the personal loan for more than $4k at the time (roughly 1 year ago).

Will the existing personal loan of $15k be a problem or would it be fine since my DTI is only 9%?

Will a pre-approval with NFCU be a HP?

Would NFCU do a HP and then only approve a parital amount like they tried last time with the personal loan?

I assume I should try other banks or credit unions but I'm worried about tons of HP messing with my scores.

[titancylinder]

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@RedundantCredit wrote:

I've never had an auto loan before, only vehicle I ever had was purchased used in cash but I've driven it to death so I'm trying to understand the odds of approval for my first auto loan for $35k, possibly with NFCU.

I have a $25k personal loan with AmEx where I still owe $15k, DTI is 9%, no credit card debt, scores are below. I assume based on my low DTI that I would be approved somewhere but I tried previously to get that personal loan through NFCU and they wouldn't approve the personal loan for more than $4k at the time (roughly 1 year ago).

Will the existing personal loan of $15k be a problem or would it be fine since my DTI is only 9%?

Will a pre-approval with NFCU be a HP?

Would NFCU do a HP and then only approve a parital amount like they tried last time with the personal loan?

I assume I should try other banks or credit unions but I'm worried about tons of HP messing with my scores.

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OP, I don't think you have anything to worry about. 

NFCU pre approved me up to 75k last year and I had some credit card debt and a personal loan (2 years paid in of 3). I was also a first timer auto loan candidate too. 

Because Navy's preapproval is a firm offer, it will result in a hard pull. For me it was Transunion. But it could be EQ or TU so make sure both are unlocked. 

The preapproval offer is good for 90 days. I would suggest you go ahead and apply if you're serious about buying a new car. 

The dealership will still want to run your credit. I usually let them run it against the dealership's captive lender and maybe one more just to make sure I don't leave any money on the table. 

For example, Navy approved me for 75000 @5.4 for 72 months but Toyota approved me at 3.75 @ 60 months so I went with South East Toyota Financial Instead.  Toyota came back and also offered 2.99 @ 36 months. Mind you this is when everyone else is giving out 6-10%.

Toyota will usually give you their best rate so long as your EQ auto enhanced 9 is 720 or above and you make more than 25k a year. 

I think it's always good to have a pre approval in hand that way you know regardless of the outcome of the dealer approval or denial. 

Toyota nor NFCU asked for income verification for me. However, I did have a friend who bought his Avalon from a Toyota dealership that did want to see paystubs and he's had 2 auto loans! 

Apply and let us know! 90% of the time it's an instant offer. 

[Gollum]

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@RedundantCredit wrote:

I've never had an auto loan before, only vehicle I ever had was purchased used in cash but I've driven it to death so I'm trying to understand the odds of approval for my first auto loan for $35k, possibly with NFCU.

I have a $25k personal loan with AmEx where I still owe $15k, DTI is 9%, no credit card debt, scores are below. I assume based on my low DTI that I would be approved somewhere but I tried previously to get that personal loan through NFCU and they wouldn't approve the personal loan for more than $4k at the time (roughly 1 year ago).

Will the existing personal loan of $15k be a problem or would it be fine since my DTI is only 9%?

Will a pre-approval with NFCU be a HP?

Would NFCU do a HP and then only approve a parital amount like they tried last time with the personal loan?

I assume I should try other banks or credit unions but I'm worried about tons of HP messing with my scores.

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A personal loan is an unsecured loan (no collateral), but an auto loan is a secured loan (the auto itself is the collateral). Since an auto loan is a secured loan, an auto loan can (AFAIK) always be obtained (not necessarily from a lender that you prefer, and/or an auto dealer that you prefer, and/or for an auto that you prefer): if the borrower has bad or no credit, the lender sets the terms to be more favorable to itself (because of the higher risk to the lender) and can repossess (then resell) the auto if the borrower does not make the payments. The borrower would theoretically decide whether or not the terms of the auto loan are acceptable before agreeing to the auto loan.

Regarding hard pulls and scores: FICO scores treat rate-shopping inquiries done within a relatively short period of time as a single inquiry. Read the "What to know about rate-shopping" section at https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries