Honda Finance Denied

[2009]

Hello everyone! I have been spending hours on this forum, it is really great. Well, I decided to apply for an Acura TSX 2009.  My scores are Eq:621, Exp: 658, Tranu: 609. I applied to Honda finance online but I was denied. The message stated:  We regret we were unable to approve your request for credit. Your options are: shop online to build your vehicle so that a selected Acura dealer can assist you with obtaining credit. OR select a dealer and submit your credit information so they can assist you with obtaining credit.

I am totally confused, if Honda couldn't help how is the dealership going to help me?? Any advice??

Thanks,

2009

[emoticon]

My advice is to apply to a credit union or bank and arrange for financing before going to the dealership.  That way, you know what rates are available to you.  Then, at the dealership, you are in control and they might try to beat your rate.

At the dealership, they will shop your app around to different lenders until they find one that will approve you.  That's how they will "help" you.  I was denied by Honda online, but when I went to the dealership, they approved me through Honda Finance.  The online approval/denial is automated -- nobody looks at your app.  At the dealership, they can approve you.

Good luck!

[Anonymous]

Don't waste your time applying online...all it does is ding your credit.

Apply in person when you are ready and sure you are going to purchase the vehicle in question....Of course always if you can before hand qualify at a CU first and make them beat the APR.

[marty56]

Most dealers have relationships with multiple creditors.  It is possible that they can find a lender for you.  Dont worry about the INQs since for autoloans since it is my understanding that mulitple INQs only count as one as long as they are during a 2 week timeframe.

[Anonymous]

May I ask- what type of score did you have when you were denied online and approved at dealership? Also- what type of rate  

[emoticon]

EQ FICO was 683.  They pulled EQ at BOA and Honda.  Honda beat BOA's rate, but I later refinanced with PenFed for 4.25%.  I bought a 2007 Nissan Altima the next day and got 2.9% through Nissan (they pulled EQ as well).  Both cars with zero down and 5-year term.

[2009]

Okay, I just applied to Penfed and I was denied online also. It said something about my account balances. I guess I need to pay down my CC and reapply a few months from now. Oh, well maybe I will get a car oneday.

[Anonymous]

Hey 2009,

Sorry to hear about your denial from Honda Financial.

I'd echo the advice of others here in the room. Work with a local

credit union, bank, etc. and arrange financing before you go into the

showroom... even if it means paying a higher interest rate. With a 621 EQ

FICO you should be able to get 100% financing, especially if you have

compensating factors like good income, same address for 2+ years, etc.

Once you have financing in hand, go to the dealer and pick out a couple

of cars that you like. I'd recommend being "model flexible". If you can't

get a really good deal on an Accord, for example, consider getting a Civic.

Also, see if the dealer is offering customer rebates - both from the factory and the

dealership. If so, consider paying a higher price in exchange for getting

the rebates. Then use the rebate money to make a few monthly payments.

6-12 months down the road you'll be in a much better position to refi into a

lower rate, but with FICO's in the 600's your priority should be a new, positive

tradeline with on-time payments Think payment range you can afford...not the

absolute lowest monthly payment.

And if PenFed is your primary CU, call them back and speak to a live person.

Online apps are automated and have thresholds built into the software that live

CSR's can override on a case by case basis once you speak to them.

Once again, I'm sorry for the denial. But "no" just means "next". Stick with it!

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 08-31-2008 09:34 AM

Message Edited by CanDoAttitude on 08-31-2008 09:37 AM

[Anonymous]

That is very good rate! Good job. I think it easier to apply at dealership . At least you have a breathing person who can tell you your options and work with you. Still- with a score of - 638- they should not have denied you online. Note- to friend that applied online at Penfed and was turned down- go to dealership!!! It is worth a try. Especially since you already have two hard inquiries(which should count as one) ! Do not give up, buddy! Keep reading here. We are here for suggestions, advice and encouragement. Numerous people have gotten car loans with bad scores, little credit, etc. It is possible!!

[2009]

Okay, I been communicating online with a honda dealership and this morning the salesman emails me and says he can offer 23,445 for a new 2008 Honda Accord Ex L with leather, sun roof, etc. I think this is a good deal, but now I have to be approved. As I said before the Honda Finance denied me online. Do you think if I get a cosigner with scores in the high 700's-800 I could qualify through Honda Finance or should I forget about Honda Finance and see who else the dealer can get me approved with????? HELP!!!!

Thanks,

2009