PenFed Application

[Anonymous]

My EQ right now is 641....is that going to be good enough for a 25k auto loan and <6% apr with PenFed? I really want to get a car soon but I know my score will go up next month. Should I wait it out?    (TU 671, EX 665)

[Anonymous]

---

@Anonymous wrote:

My EQ right now is 641....is that going to be good enough for a 25k auto loan and <6% apr with PenFed? I really want to get a car soon but I know my score will go up next month. Should I wait it out?    (TU 671, EX 665)

---

They are going to pull Equifax. They use the EQ Nexgen 2. It really depends what that score is and unfortunately you won't know until they pull it.

Unless your 641 is the score you got from Penfed.

[Anonymous]

---

@Anonymous wrote:

My EQ right now is 641....is that going to be good enough for a 25k auto loan and <6% apr with PenFed? I really want to get a car soon but I know my score will go up next month. Should I wait it out?    (TU 671, EX 665)

---

There are so many variables that goes through the loan. You have the score, AAOA, Debt to income ratio.

I suggest to pay close attention to those 3.

[Anonymous]

If you need a car then go for it.  If you can wait then waiting is probably best.  Refinancing a car is super easy when it is in that first year or less. I had to buy a car at a time when my scores were crap and I had student loan lates settled for 12.5%, worked on my scores and let the delinquencies age a few months and NFCU approved me 5 months later for 4.29% with scores in the low 600's.   My point is if you don't get the rate you want you can always refinance, ideally you get what you want the first time but your not stuck with the origional loan unless your credit tanks or the LTV doesnt meet their standards.  Most that cannot refinance are in that spot because of LTV issues.

[Anonymous]

Well...I pulled the trigger and applied to PenFed today. My score went up 16 points this morning so I thought I had a great chance. FICO8  657= Got denied. Pretty sad about that. I guess the 5 tiny baddies (medical only) that barely total $930 was the deciding factor. Income is $135k. No late payments, 4 credit cards at 15% util...1 open auto loan with Cap1 since 2014 open never late... Been at my job for 4 years...I am so confused.

[Anonymous]

What reason did they give you?

[Anonymous]

This is what they said:

COLLECTION ACCOUNT(S)
PAST OR PRESENT DELINQUENT ACCT(S)
LENGTH OF TIME ACCTS ESTABLISHED

[kevinjjc]

PenFed tends to be conservative. Try DCU, they're more forgiving.

[Anonymous]

---

@kevinjjc wrote:

PenFed tends to be conservative. Try DCU, they're more forgiving.

---

Not necessarily. DCU is VERY conservative.

OP before applying at DCU you need to find out what your EQUIFAX 5 mortgage score is. You can do that by getting an Equifax 1B report here on MyFico.

A collection is a collection. Whether it's $100 or 10k, they are scored the same way.

If they are unpaid collections it looks a whole lot worse on a Manuel review than a paid collection on a manual review. Anytime you ask for a recon the unpaid collections will be very unfavorable.

[garagebandking]

---

@Anonymous wrote:

Well...I pulled the trigger and applied to PenFed today. My score went up 16 points this morning so I thought I had a great chance. FICO8  657= Got denied. Pretty sad about that. I guess the 5 tiny baddies (medical only) that barely total $930 was the deciding factor. Income is $135k. No late payments, 4 credit cards at 15% util...1 open auto loan with Cap1 since 2014 open never late... Been at my job for 4 years...I am so confused.

---

How old are you 4 credit card?

What is going on with the 2014 auto loan? Are you still driving that car and just want another/different car? How much do you still owe?

Are those collections paid? Have you been challenging them? What's the end game for you in dealing with them?

If the collections are paid, you could try to recon and plead your case.