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Lost in Used Car Loan Land

New Member

Lost in Used Car Loan Land

Hey everyone!  I've been reading through all your posts for about a week and am just amazed at the level of knowledge and support I've seen.  I'm hoping you can give me advice in relation to a loan for a used auto.  I was recently in an accident and my car was total loss, so I'm in need of a reliable vehicle ASAP.  My credit is not pretty with late payments, a judgement and a couple of medical bills that are outstanding( both recent and longer standing).  I have a Chapter 11 Bankruptcy on my record which I paid off completely in June of 2008.  I applied online with USAA for a 11k auto loan yesterday and was denied, reasons stated match what I mentioned above.  I've been a member of NFCU for more than 10 years and would like to try and get an auto loan from them, but am wondering if I should go in person vs online or over the phone to have a better chance of being approved, if I can even get approved.  Anything I can provide/say to give them a reason to take a chance on me?  Also, if NFCU does deny me, what are the chances of getting financed through a dealership (Toyota, Honda, etc.)?  My FICO score through Equifax is 595, I've been at my job for 18months, take home a bit north of 3k a month, have one secured card through NFCU and have about $550 left over at the end of the month after my bills are paid.  I will have 1500-2500 for a down payment.  Any help would much appreciated.  If I need to provide more information, please let me know.




Message 1 of 3
Valued Contributor

Re: Lost in Used Car Loan Land

I would go in.


If denied by NFCU I think a dealer could find you some kind of financing, maybe just not at great rates. 


Don't feel bad about USAA, they denied me with a FICO score at 726

Ch 7 Discharge 3/12/2018
Credit One $700, Wayfair $3,500, Blaze MC $2,500

AU Cards: CSP $37.7k; Chase Marriott $20k; Citi TY $8.5k; Barclays Arrival+ $15k
Message 2 of 3
New Contributor

Re: Lost in Used Car Loan Land

The more money you can put down, the better the odds of approval. Also the price of the car in relation to the value is a factor.  Basically the better the price the more likely you are to get approved, so find a car "back of book" meaning the sales price is much lower than the kbb retail value.  Couple that with a large down payment and the risk to the lender is greatly reduced.


Look for something under 70k miles and no older than 5 years old.  


A dealerships special financing dept will know these things and try to find a vehicle that would work right for financing. I would look for the largest dealers in your area and call and talk to the finance manager or special finance manager if they have one.  


Once you initiate the first auto hard inquiry, hurry and find a car.  You can apply as much as you want within a two week period and any inquires will be counted as one by Fico.


If you pay rent, just fib and tell them you live with family and pay no rent. this will help with Debt to Income ratio.  Smiley Happy

Message 3 of 3