Good (Fair) Lender for Marginal Credit

[Remember0]

I don't know to be honest. I imagine a decent story (first loan is wife's car) goes a long way. Maybe someone with experience on this can chime in...

If you do apply there, let us know what happens. It'll help future members on this board.

[DanTheMan77]

So... my car bit the dust today. Too many things wrong with it to fix. It's overdue for inspection and it won't pass. Bottom line, I need a new car ASAP. I put in an application to DCU and am waiting to hear back. I also applied with Capital One again, and this time I was denied. **bleep**? I looked at my old approval from them, and they approved me when my score was 615. Now my score is 655 and they declined me. Now I'm worried DCU might not approve me either. No idea why I was denied yet, but yeah... I'm worried. Any idea why cap one would deny me now after I was approved before? Nothing has changed... my score is actually higher!

[Remember0]

There's a hundred different possible reasons. They should be sending you a letter with some vague reasons. Give DCU a call...they take forever if left to their own devices. Tell them your car broke down. I expect you'd be approved for ~4-5% at DCU if that 655 in EQ FICO.

[humanjukebox]

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@DanTheMan77 wrote:

So... my car bit the dust today. Too many things wrong with it to fix. It's overdue for inspection and it won't pass. Bottom line, I need a new car ASAP. I put in an application to DCU and am waiting to hear back. I also applied with Capital One again, and this time I was denied. **bleep**? I looked at my old approval from them, and they approved me when my score was 615. Now my score is 655 and they declined me. Now I'm worried DCU might not approve me either. No idea why I was denied yet, but yeah... I'm worried. Any idea why cap one would deny me now after I was approved before? Nothing has changed... my score is actually higher!

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@I just got in with DCU with a FICO of 628 @ 6.5%. Just be able to explain anything wrong on your credit report and honestly poor your heart out to them....it doesn't take much. Only other advice is to call them yourself ext 9150 consumer loan dept and they will take care of right on the spot....

[DanTheMan77]

Not sure what the deal is with Cap One. RoadLoans approved me for $40k but at 9% for 72 months with zero down... thats a higher rate than i want to pay and way more $$ than i need. I'll call DCU tomorrow.

Out of curiosity does anyone know how RoadLoans works? The approval has a specific dealer listed on it... and its not a dealer I want to business with. Is their approval good at any dealer? I don't see the answer in the info they sent me.

[Remember0]

I believe that's how they maximize their interest earned. Charge you a high rate and tempt you to buy more than you can afford.

No personal experience, but pretty sure it'll work at most dealers. Definitely works at more dealers than just the one listed.

I'm willing to bet DCU finances you lower...

unrelated and I'm just curious, but what car are you looking at?!

[DanTheMan77]

I'll let you know what DCU says once I talk to them.

I'm looking at a Toyota Camry SE... probably a 2012 unless they want to give me a great deal on a new one.

[Remember0]

Honestly, look at negotiating a new one "the right way." You can probably get pretty close vs. buying a late model used at a dealer because used car prices (especially on a model like the camry) are crazy at the moment. It's at least worth a try, because good negotiating is all done online, you need not physically go to the dealer...so you don't waste THAT much time. Just don't give online dealers your real name/email/phone. Open up a spare gmail account to give them (they'll spam) and maybe look into google voice if you don't want endless calls after you're done shopping.

See here:

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289... (the price stuff is in the intro, no need to read all if you don't want to)

and

http://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289

[DanTheMan77]

DCU approved me for 4.24%... 3.74% if I do direct deposit. One question though... they said they will only finance the purchase price... I will have to pay for taxes, fees, and registration out of pocket. They said this was because of my previous bankruptcy and the fact that it's a second auto loan.

Not sure what to do... taxes and fees are going to run almost $2,500 which is more than I can put down right now. Also, the 2012 I'm looking at has 25,000 miles and is advertised for $18,900... it's a certified used. All the sites I check put the value above that. Edmunds TMV is $20,500 (certified dealer retail) and NADA is $22,750 (clean retail). It seems like a good price... I was thinking of going in offering $18,000 to see what happens. TrueCar puts the 2014 dealer price for the same model at $22,400. I'm not sure it's worth it to take the depreciation hit on the 2014 given those prices. Input?

[DanTheMan77]

I think I'm tempted to go with Road Loans, even though the interest rate is higher. I could then use the $2,000 to pay down my CC's which have about 15% interest rates. That's not the best AL rate, but I think it's the best use of my money... paying the highest rate loans of first. Once I get my wife's car paid off I could get the balance paid down on the new loan then refi into a better rate. I'm going to the dealer tonight so I still planning on seeing what offers thay can get me.

Does this sound like a sound plan?