PenFed Auto Loan Denied

alexvale · ‎02-25-2014

Applied for PenFed Auto Loan and was denied. The reasons given were:

Amount owed on accounts.
Length of time accounts have been established.
Proportion of balance to limit on accounts is too high.

The score that they pulled from EQ was 695 vs 717 that is provided by MyFICO from lastest score watch alert 2/25 from the pull that PenFed did.

Guess I'll have to wait another year before applying for an autoloan :/

I was approved by my local bank but the interest rate is too high, 10.49% for 84mo... I'd be paying almost double the MSRP of the car >_<

Going to keep my PenFed Regular Share account open and transfer cash to it from time to time and develop a good relationship with and hope they'll approve in a few months time.

EQ FICO - 835
TU FICO - 815
EX FICO 820

RushXTC · ‎02-25-2014

@alexvale wrote:
Applied for PenFed Auto Loan and was denied. The reasons given were:

Amount owed on accounts.
Length of time accounts have been established.
Proportion of balance to limit on accounts is too high.

The score that they pulled from EQ was 695 vs 717 that is provided by MyFICO from lastest score watch alert 2/25 from the pull that PenFed did.

Guess I'll have to wait another year before applying for an autoloan :/

I was approved by my local bank but the interest rate is too high, 10.49% for 84mo... I'd be paying almost double the MSRP of the car >_<

Going to keep my PenFed Regular Share account open and transfer cash to it from time to time and develop a good relationship with and hope they'll approve in a few months time.

I don't think the "Relationship" matters... I've had penfed for a while, Not long, Probably around 4 months and have thrown over $500 into it so far (Not a lot, again, But it shows my interest) I throw $25 here $15 there, bunch of transactions. I've gotten denied twice for the "Promise" card.

They just base it off your credit like a normal CC company and you're only eligible if you have an account (That's the only difference) so $5 in a regular share with good credit would still be good enough.

Remember0 · ‎02-25-2014

Geez...sorry about that. PenFed can be very conservative unfortunately. Really I wish DCU would lend to you guys down there...

Out of curiosity, what bureau did the local bank pull?

Creditaddict · ‎02-25-2014

OMG, what car are you thinking of buying for 84 months!!!

alexvale · ‎02-26-2014

@Remember0 wrote:
Geez...sorry about that. PenFed can be very conservative unfortunately. Really I wish DCU would lend to you guys down there...

Out of curiosity, what bureau did the local bank pull?

Yeah, seems the case that they are :/ It really sucks! DCU had approved me on the spot and the only thing pending was to send in my drivers license and set up the checking acount.

The local bank pulled TU which has the mobile company with lates, this is being used/paid by my sister and I can't terminate the contract until I get tax returns to pay off the ETF and then have to see how to get it off my report.

EQ FICO - 835
TU FICO - 815
EX FICO 820

alexvale · ‎02-26-2014

@Creditaddict wrote:
OMG, what car are you thinking of buying for 84 months!!!

It's a Mistsubishi ASX SE 2013 aka Outlander Sport SE in the mainland US, ASX is how its branded everywhere else haha That model goes for $28k down here due to an added excise tax for importing cars.

@I was aiming for 84mo cause of lower payments and I'm aware that at the end I'd be paying more in interests. The calc gives about ~$500 difference per year @2.99% which I find a fair trade off for lower payments that are more maneagable

EQ FICO - 835
TU FICO - 815
EX FICO 820

Creditaddict · ‎02-26-2014

@alexvale wrote:
@Creditaddict wrote:
OMG, what car are you thinking of buying for 84 months!!!
It's a Mistsubishi ASX SE 2013 aka Outlander Sport SE in the mainland US, ASX is how its branded everywhere else haha That model goes for $28k down here due to an added excise tax for importing cars.

@I was aiming for 84mo cause of lower payments and I'm aware that at the end I'd be paying more in interests. The calc gives about ~$500 difference per year @2.99% which I find a fair trade off for lower payments that are more maneagable

it's not a matter of paying more for the car in the end... people rarely keep cards 84 months and the car may not even be running in 84 months... it's just not a good way to go, you will be so far upside down for YEARS if you need to get out of it.

alexvale · ‎02-26-2014

@Creditaddict wrote:
@alexvale wrote:
@Creditaddict wrote:
OMG, what car are you thinking of buying for 84 months!!!
It's a Mistsubishi ASX SE 2013 aka Outlander Sport SE in the mainland US, ASX is how its branded everywhere else haha That model goes for $28k down here due to an added excise tax for importing cars.

@I was aiming for 84mo cause of lower payments and I'm aware that at the end I'd be paying more in interests. The calc gives about ~$500 difference per year @2.99% which I find a fair trade off for lower payments that are more maneagable
it's not a matter of paying more for the car in the end... people rarely keep cards 84 months and the car may not even be running in 84 months... it's just not a good way to go, you will be so far upside down for YEARS if you need to get out of it.

Gotcha. In my case I don't plan to get out of it or change it. I've had mine for 9yrs and the only reason I'm getting a new one is because it suffered a frontal collision from someone that lost control and insurance didn't cover it completly. If it weren't for that then there wouldn't be a need for a new one.

EQ FICO - 835
TU FICO - 815
EX FICO 820

Creditaddict · ‎02-26-2014

@alexvale wrote:
@Creditaddict wrote:
@alexvale wrote:
@Creditaddict wrote:
OMG, what car are you thinking of buying for 84 months!!!
It's a Mistsubishi ASX SE 2013 aka Outlander Sport SE in the mainland US, ASX is how its branded everywhere else haha That model goes for $28k down here due to an added excise tax for importing cars.

@I was aiming for 84mo cause of lower payments and I'm aware that at the end I'd be paying more in interests. The calc gives about ~$500 difference per year @2.99% which I find a fair trade off for lower payments that are more maneagable
it's not a matter of paying more for the car in the end... people rarely keep cards 84 months and the car may not even be running in 84 months... it's just not a good way to go, you will be so far upside down for YEARS if you need to get out of it.
Gotcha. In my case I don't plan to get out of it or change it. I've had mine for 9yrs and the only reason I'm getting a new one is because it suffered a frontal collision from someone that lost control and insurance didn't cover it completly. If it weren't for that then there wouldn't be a need for a new one.

If you are having to get a new car now because of an accident and insurance didn't even fully cover this one, could you imagine if you had an accident on an 84 month loan and insurance says here is the $5k for your car and you are saying WHAT, I still owe 3+ years and over $10k?!

by taking an 84 month loan you are taking away the bonuses of being willing to drive a car into the ground because it won't be paid off and you won't be putting those payments into a savings or roth or something

Remember0 · ‎02-26-2014

Getting GAP solves this problem with accidents though not breakdowns obviously. GAP through your insurance company is often cheap (a friend's is $1/month). And even through a dealer can be negotiated to <$300.

I personally don't think 84 months is so bad. I mean 72 is common these days and people no longer blink at 72. Only a matter of time till the common becomes 84. Cars are getting more expensive and lasting longer.