PenFed Auto Self-employed POI?

Anonymous · ‎10-20-2021

HI folks,

Does anyone have any experience applying for a PenFed auto loan with self-employed income? If so, did you already have other credit products with them? Did they request POI, e.g. tax returns or bank statements?

It seems to be the opinion of the community that auto loans are easier to get than credit cards, given the collateral. I was denied for their PCR signature Visa last month. Didn't get the instant denial...more like those that freeze, then the page never reloads...and then the next day had the notification to provide tax returns. Of course taking advantage of as much deductions as possible my "net" income on my returns are pretty low. My score at that time was around 709. Did recon and same result. Problem is the generic letter listing some baddies on my CR.

I just joined to app for the PCR, so it's still a relatively new relationship, and have only cycled through $500 in the checking account.

I was pre-qualifed through CapOne navigator for around 3.5-4.2%. People for some reason hate seeing 10+ inquries on their reports for some reason, even though they really only factor as one inquiry if all within 2 weeks or so. That said, I am probably going to app with PenFed first, knowing I have CapOne in my back pocket. At least with PenFed the inq. will only be on EQ, as opposed to the triple HP with CapOne. I will probably give a swing with the captive lender as well, as one dealer is already offering to discount $1k if financed with them.

Just wanted to know what to expect with PenFed. Thanks!

CreditCuriosity · ‎10-20-2021

Depends probably partially on amount of auto loan and various other factors. Although PenFed and other CU's are known to ask for POI just like some dealers especially if self employed and depending on if you also have had alot of auto loans in the past or not and your credit profile overall. I am not self employed and took around 70k car loan about 5 years back, but granted I have direct deposit with them so they can see my income basically. If they asked for it on your last CC app, I suspect they would also ask for car loan as well although partially secured. It is just a HP though so it willing to take one then can always try and see where it goes?

Anonymous · ‎10-23-2021

UPDATE

So I started an app online and could not get passed the vehicle info section. The value their database was pulling is the MSRP of $34,400, but this vehicle is selling for 10-20% above MSRP in my market (200mi radius of DC metro), and in other markets from what I found. I was requesting $39k and the online app didn't want anything to do with that - LTV too high.

So I called PenFed CS and they were able to complete the app for me. Went into pending review status. I was told to expect a response in 24-48 hrs, but she did share that if I go to the dealer, I can call in and get an expedited decision. So of course at 8:20pm I went into my guest bathroom and called PF and told them I was at the dealer and needed a decision. Got transfered from CS to a salles specialist who would serve as intermediary with UW, hold for several minutes - APPROVED!

After a couple of hours of the initial app the online portal was still just showing a status of under review, no were being requested at that time. Being nervous about the whole situation, given my PCR denial experience, I uploaded a few monthly ADP statements that one of my clients uses to pay me. When I was on the phone with the sales rep I mentioned to him that I uploaded those docs and he just said he'll check for them and if UW asks for more info he'll inform him of the statements. When sales rep returned with the approval I totally forgot to ask if the UW had to consider those statements or not.

They pulled EQ, as expected, score 713. Not quite sure which model though. As far as I know my score that day were: F8 688 F9 752 F8 Auto 672 F9 Auto 732

The auto scores are actually ffrom 10/08 - so maybe it was the F9 auto on 10/21, given my new Apple and Amex cards hit my report several days before the app.

I was approved for $39,000 4.09% 72 months. My pre-qual rates with CapOne were in the same neighborhood. So wanting to establish a credit relationship with PF, and avoid the triple pull, needless to say PF is who I went with.

Over the few days before the app I was negotiating with several dealers via email, and app'd when I was down to one. Of course, things always get screwy when you go to a car dealer. Over the phone the salesman at the dealer said they can give me an additional $1,000 off if I finance through them. I know they have a self-interest in running the app from their end, but he said they use EQ for their pulls and they work with PF too. So I figured sure, no harm here, another auto pull on EQ wouldn't hurt my score and they just approved me directly. When I got to the dealer, the FI said the app was still pending with PF with a tentative rate of 5.5%. I told him get on the phone with the UW and let'em know I was just approved the night before at 4.09% and let's go! Of course he offered to shop me for a lower rate; I declined the offer. My profile is getting better everyday, but I know I am still not top tier material, and I was already happy with a 4-5% rate; especially since my last auto loan was 18.9%.

He finally came back with a PF approval at 5.4%. I accepted. You might say why not go with original PF loan at 4.09%, excellent question. Based on some math and a qualitative reason, it worked for me.

1. I really wanted to establish a credit relationship with PF - this is reason I didn't let FI shop for another rate.

2. They gave me a $1,000 incentive

3. They gave me $7k for my 2014 Nissan Altima. CarMax was offering $5-6k. The most ironic part is that this is the same car I financed through Exeter at 18.9% that charged off Nov 2020 and I settled with them for $4.3k, which they said was the auction value at that time. I still owed them about $10k.

In absolute terms I'll pay about $1,800 more in interest, but the Net Present Value of the cash flows, I believe I came out ahead. Especially with what they gave me for my Altima. I was $42,756 out the door, so I decided to still finance $39k used half of the $7k they gave me to pay the balance and cashed out the rest.

In a few days I am going to go to a PF branch and make a case for PF to give me the original rate they approved me for. That would be the cherry on top.

I know this was long, but hopefully someone will find it helpful.