Hi All,
Has anyone had success getting approved for an auto loan with new credit (& no co-signer)? I've seen a few posts here where people got a loan with a high interest rate (20-25%), and I'd like to know your experience and who the lender was.
My credit history is relatively new (only 4-5 months long), so I don't have a Fico Score with TU or EQ, but I do have one through EX (see sig) because I have an old Chase account still showing (should be aging off after this month though). Unfortunately, I don't think my car will last another two months before I have scores with all three credit bureaus. My fiance offered to co-sign, but he wants me to try on my own first (I think he's getting cold feet).
*FYI - I did try a few SP applications 1.5 months ago with no luck. There was one Honda dealer that said they can get me an approval, but I'd like a few other financing options before showing up there to see what they can get me. My other issue is I still don't know what car I want. I'm familiar with Hondas, but looking to branch out. I've also looked at Toyota and Mazda (fell in love with the Mazda 3 Touring), but without knowing what kind of rates I'll be getting, I don't know what I can comfortably afford.
That is fantastic news, thanks! DCU is definitely on my list of CUs to try. Did you already have a relationship with them when you applied? I was already planning to put a 20-25% down payment so that should be no problem at all. I have been anxious about this for weeks now, so this brings me hope. 😊
@Anonymous wrote:
No I opened a checking account at the time I applied for the loan. I also had a very similar profile to your with just a couple small rebuilder cards. They approved me in June, dealership was offering 18% and I had already turned that down. Tried DCU a few days later as a last resort and was surprised at approval. They also gave me a $4,000 credit card. At that time I only had 2 other cards with about $500 limits.
Wow! Getting my hopes high now. I have a few more questions if you don’t mind. I really appreciate the feedback (this is so helpful). Did you apply with DCU online and/or did you ever speak to someone during the loan process? Also, did you ask for the CC or did they offer it? I’m interested in doing that since I only have two cards. Finally, what dealership offered you 18% (out of curiosity). I may do my application tomorrow.
@Anonymous wrote:
It was a Toyota dealership. I still bought the car there but not with their financing. When I applied at DCU I called and applied over the phone. When she said approved I asked about a card and she said cool. They were very easy to work
And you applied for a bank account in the same phone call as well? Never thought to call. Thanks so much! Keeping my fingers crossed 🤞
UPDATE: I got approved! 6 weeks ago, I couldn’t even prequalify. Now I have two approvals. Decided to try Capital One Auto yesterday and I was prequalified. Interest rates were 8.64% - 10.4% depending on vehicle (looking at vehicles $25k or less). FYI they had denied me in late August for having a thin file, so I added a second CC and waited for it to report, so it looks like that helped.
Feeling a little more confident, I called DCU this morning and was approved at 7.49% or 6.99% if I add direct deposit. Before I could even ask, they also offered me a Visa with a $5,000 SL!