Loan declined

[Anonymous]

I recently applied for an auto loan and was declined. I have recently applied for a new credit card and was approved so I have that to help build up my payment history. I plan on paying off my lowest student loan in the next few months to help boost everything. How long should I wait to try for the auto loan again? I was thinking around 6 months? Or should it be at least 6?

[Loquat]

Hi OP and welcome to the Forum.  

If you don't mind me asking.  What did you apply for (vehicle, amount, dealer or personal, lender).  What were the reasons for decline.  Chime back in with a few details and we'll see if we can give you some guidance. 

[Anonymous]

I applied through the dealer, honestly I don't know if I was approved or not. I did the same when I bought my previous car and finalized the deal and everything with Volkswagen through email and with the online sales team. Subaru didn't give me any answers, salesmen just started calling me. I did however apply through roadloans and got a letter declining me. I believe the reason was my credit scores. My current Auto score 8's are 732 Equifax 740 Transunion and 732 Experian, they were lower 2 months ago when I applied though. I had one of my credit cards a few bucks from being maxed out, I've since paid it off. I have 90 days late on my student loans from when I requested forbearance 2 years ago, I'm seeing if I can get these removed (I won't hold my breath)

The vehicle is a 2019 Subaru WRX, price 35k, I think on the safe side I will get 8k for my trade-in and I plan on putting at least 5k down. My gross income is 42k. And I currently have $200 in credit card debt.

[Anonymous]

My Auto Score 9 at the time was:

Experian 652

TransUnion 643

Equifax 637

So that may have something to do with it. Now the Auto Score 9 is:

Experian 708

Transunion 701

Equifax 708

I was reading on someone elses post that Subaru pulled the 9. I had applied to a third place and I cannot remember who it was but they declined me and said they would send a letter through the mail. I still haven't received anything but at this point I think it is a waiting game. I am waiting for my VIP membership to mature so I can apply for the VIP pricing. I'm just nervous about the hard pulls when the time comes. I did a Capital One preapproval and was approved even after picking the car and inputting my down payment etc. Is that pretty accurate?

[Loquat]

CapOne is very accurate.  And I don't see you having a hard time getting a loan.  Your scores are decent and you're income isn't terrible.  If your debt to income ratio is in line then I wouldn't worry too much.  I think when you're ready to pull the trigger you should be able to obtain a loan without much issue. Remember that most dealers have a lender or two in their pocket who can often get things done that you wouldn't be able to get done on your own.  

[dublingreen]

Try Roadloans.   You may get approved then take the form over to Capital One.   Have you tried Costco and their auto program?

[GApeachy]

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@Anonymous wrote:

I applied through the dealer, honestly I don't know if I was approved or not. 

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Have you checked back with the dealer yet?

[Anonymous]

So here's the update. I think when I tried the first time for the auto loan I had just taken out another creditcard and I had too new of a recently opened creditcard. I found a dealership willing to give me an amazing price on the car I wanted. I told them I wasn't going to bother with anything else unless I got approved for the lowest interest rate. So in the initial request to Chase from Subaru they put the loan amount in for the car without my down payment or trade in and my income wasn't sufficient to cover the loan at that amount. I was aproved for the 1.9% with my Transunion score of 715. Ultimately I got my spouse to cosign since his credit is lacking but his income would cover the difference. Since the down payment and my trade in reduced the loan by 10k I think I would have actually been approved by myself. But in the last 6 months I have improved my credit score by 75+ points depending on which bureau you look at.