I'll apologize in advance... this is a bit of a brag post .
My wife and I had our first child just a little over a week ago. We had been talking about buying a small SUV/Crossover type vehicle as we both currently drive Honda Civic 2 door coupes. After a week of trying to lug a carseat in and out, plus fit the stroller and all the baby stuff, I was pretty fed up.
I called my CU and applied for an auto loan. They called me back and said that they could not approve me because of "excessive obligations" and "recent delinquency." I explained the baddies on my report and they said to call back when those were cleared up and they would reevaluate.
As for the baddies/credit history - I joined these forums about a year ago. My credit score was a 560. I had a handful of collections, medical collection, excessive lates on my SL's, defaulted on a few other student loans. I did lots of work, got quite a few deletes, did a few PFD, and worked on rehabing my SL's (which I learned about on these forums! THANK YOU!). I even opened up to secured CC's and was approved for an unsecured $500 limit. Things started to go up, then they dropped down to 530 and I've been building back up since.
I spoke to a family member about the denial and she offered to cosign. We were scheduled to go out the following weekend to "seal the deal." I decided to go out and look at some cars this past weekend and fell in love with the CR-V. I found a 2012 Honda CR-V EX and it had the space we needed plus a few extra perks that I wanted. Since I had already had my CU pull my credit, I knew it wouldn't hurt me to have Honda pull it and see what they could do for me. I told Honda the payment amount I was looking for and that I didn't want an outrageous APR as I could just come back the next weekend with a highly qualified cosigner and get something better.
They ran the numbers, came back, told me the payments, terms, APR, etc., and to my surprise they somehow qualified me for 4.49% with American Honda Finance. My Equifax score is a 578 and my Auto Enhanced score is a 601. I'm completely baffled. I was able to get the car I wanted ( I would have been happy with the lower LX model, but they lowered the price to make it work), a car payment $5 below my max (hahha.. not much, but it's something), and the APR of someone with far better credit.
(not my actual car)
Edit: Double posted image.
Congratulations! That is a very nice ride, and at a great interest rate, too! When I was car-shopping, the CR-V was on my list to look at. I used to be partial to Toyotas, but I much prefer the look of the CR-V over the Rav4.
Congrats! I like. So did you actually end up needing to use your co-signor??
Nice purchase, great rate. Congrats!
Congrats! We're twins cause I just a loan as well and am getting the CRV EX-L! Love the car and can't wait to pick up this friday!
Congratulations!!! Maybe it was your HUGE down payment, or, your large annual income that sealed the deal?
Whatever made Honda approve you -- you have received a great blessing for you and your family!