NFCU auto loan denial…Cap One Nav questions

[empressj]

Happy Friday, I recently submitted an auto loan application with NFCU and denied - reason given, did not meet their lending criteria. I sent a secure message requesting a recon and advised to wait for the letter to review the 3 main factors surrounding denial. Outside of BK7 19 months ago I have no negatives. I apped Affinity Federal too, no denial but they countered for 10k with 11.373% with auto pay. I have credit cards with both CUs, zero balances and positive payment and banking histories. Needless to say, my feelings are hurt and I’m miffed 😤. So I’ve moved onto Cap One Auto Nav and pre qualified. It’s kind of too good to be true since they were included in BK7 (owed less than $400 - car totaled in accident). After uploading proof of income I received another confirmation email. I called in inquiring about how much was I qualified for, and rep said it depends on the car and amount. I’m interested in a 2016 - 2017 Hyundai Santa Fe Sport. So far the offered APRs are betweeen 5-8 percent. Then rep said I just need to bring in qualification letter and the dealer will then pull up the reference number and my credit report (hard pull) and go from there. She also stated the APR offered on Auto Nav is accurate unless there are changes on application at the dealership. Anyone have experience with Cap One Auto Nav? Is it really this smooth? I feel like there’s more to this ...but trying not to overthink things. So nervous...we plan to look around tomorrow 😧 Any suggestions?

[pipeguy]

There are a lot of "non-promises" in you stated offer including the actual APR, the actual amount, the dealer playing financial games, another hard pull, etc. There are some reports on these forums as to how dealers don't care for Cap-1 "pre-qualify" terms and tend to say "oh we don't use those" or run your credit multiple times anyway and many times beat those terms.

My personal experience using Cap-1 "pre-approval" which I have done (approved as a pre-approval) twice is that the "approval" is not really a solid approval whereas DCU's or NFCU's set apr pre-approvals are just that, fill in the amounts and it's done (dealers hate those btw). Before I purchased my most recent vehicle (new, $42k MSRP,  loan amount $30k in 2016) I ran the Cap-1 preapproval process app and it came back "denied unable to offer you a loan" - My actual loan for that vehicle was basically instantly approved by DCU for 65 months at 1.74%. Note too that I have never missed or been late on a car loan going back over 40 years and have no late or missed payments on any of my credit reports.

That said, even if you have to accept a higher cost loan today due to your BK, that does not mean you can't refi through DCU or NFCU or another lender once you get over the 2-year mark or "improve" in the eyes of the lenders' requirements - this is true of dealer sourced auto-lending too (you can always refi those too).

[Anonymous]

I just used capital one for a car 10 days ago and it was easy peasy. Played around with different cars and down payments and aprs on the website. Went to a dealership, gave them my reference number, we downloaded my last pay stub, I walked out with a car with nothing down an hour later.

Low 600s with near Max utilization on all cards. Plan on refinancing with navy down the line.

[empressj]

Congrats! Picked up my car yesterday. It was a fairly easy process besides some hiccups with the dealership. I plan to refinance in a few months

[bigpoppa09]

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@empressj wrote:
Congrats! Picked up my car yesterday. It was a fairly easy process besides some hiccups with the dealership. I plan to refinance in a few months

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Congrats a Refi in a few months will only be possible if the LTV is in order meaing loan to value dealers tell people all the the time oh just sign for this car and u can Refi in a few months. They be in for a shock especially if they bought a new car u upside down the minute u drive off the lot. This really is the case if people didn't put any money down.

[empressj]

Make sense. Good thing we put money down and paying extra money each month.