NFCU lower threshold for Auto Loans

[isaac0505]

Hi everyone, So I just recently joined NFCU this week and would like to get an auto loan through them. I was advised through a phone call with them that they generally use Equifax for auto apps. My current EQ scores are below as of 5/15: EQ 8 - 551 EQ Auto 8 - 541 EQ Auto 9 - 527 EQ 9 - 509 I realize that my scores are low as I am in the process of rebuilding but I would like to know from people's experience what the lower threshold of approvals might start. I have a checking/savings with them. Would adding a secured card help? Other DP's: Util% = 69% DTI% = 2% I plan to get UTIL down under 8% by time of next reporting 6/15. Not sure how much increase I will see but score simulator on MyFico puts me at +/- 620 for EX 8. Thanks!

[Loquat]

First let me say that congrats on taking steps to rebuild your credit. It can be a long road ahead but stay the course.

As for NFCU's threshold for auto loans...it's anyone's guess because underwriting criteria can be changed on a moments notice and economic conditions play a part in it as well.

With that being said, auto loans aren't all that hard to get during good or bad times. And depending on your employment, income, and if you've had or have any repo's on your report at the moment will be a huge factor.

In my previous career I was a Finance Manager and I can tell you that a lot of the lenders I worked with didn't care much about you defaulting on a credit card as it related to approval criteria. With that being said if your profile wasn't top notch you're going to pay a higher interest rate but that goes for any lender.

I could tell you stories that'd make you raise an eyebrow as to why a lender would approve some of the loans that I got done...but it goes back to my point that auto loans just aren't that hard to get.

With steady income, enough income, and the right down payment...sins of financial past can be overlooked. Trust me.

[OD1990]

Well I can give you the DPs for an auto loan pre-approval my dad got the same day that you asked this question, that may give you an idea of chances and just how amazing Navy really is:

EQ (594) util: 45% 

income: 28.8K (working at job for 3 years)

loan amount approved: 25k @ 6.99 for 72 months 

He applied for a 2nd credit card with Navy and received the lowest interest rate on a cash rewards possible with 17.7K SL. SO NOW IS THE TIME TO MAKE A MOVE! 

[Anonymous]

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@OD1990 wrote:

Well I can give you the DPs for an auto loan pre-approval my dad got the same day that you asked this question, that may give you an idea of chances and just how amazing Navy really is:

EQ (594) util: 45% 

income: 28.8K (working at job for 3 years)

loan amount approved: 25k @ 6.99 for 72 months 

He applied for a 2nd credit card with Navy and received the lowest interest rate on a cash rewards possible with 17.7K SL. SO NOW IS THE TIME TO MAKE A MOVE! 

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Good stuff @OD1990 -- thanks for sharing it. What I find most significant is 2nd credit card, meaning dear dad had already started relationship building with Navy. I suggest you do the same. Open a checking/savings and get a secured CC. Let them see you handle it responsibily. In 6 or 7 months it will graduate & you can get a 2nd card like the afore-mentioned DD. Good luck! 

[isaac0505]

Thanks, this is great info!! Was that EQ 8?

[Anonymous]

I had sub 600 scores across the board two years after a repo and with 100% credit utililization (all with NFCU) and was approved with NFCU for a 45k loan. Admittedly I had good income, was showing nearly 15k off MSRP for a favorable LTV, and ended up paying 13% interest but they still approved me when no one else would. I do think your history with NFCU helps as I've banked with them for years and they've always extended credit when I needed it.