Perfect history with credit union. Need an suv. Approval question.

[MostlyAwake]

I don't have my score at the moment but I do know my file has NOTHING but medical collections on it.

I have 5 payments left on my current 60 month new auto loan through my credit union and have made 55 of 55 payments on time. I also have a revolving line of credit with them that is 3 years old with perfect history.

The car and the line of credit are the ONLY credit I have at the moment. As I said my file has nothing but medical derogs...but there are literally more than 50 of them on there. I financed my car with my CU in November of 2012 and was diagnosed with a stage 3 malignancy in January of 2013.

I had to let all the medical debt go. It was a miracle that I even kept my regular bills current and never missed or was late on a single payment. The medical stuff I knew I couldn't pay hardly any of and having 40 derogs instead of 50 wouldn't matter enough to be even more broke.

So basically the situation is that I need an SUV and am curious whether my CU will weigh my perfect relationship with them heavily enough to overlook a fico that has to be down in the low 500s
with as many derogs as I have.

I'm going in next month and paying all the remaining 5 payments of my car at once which is where I had planned to attempt getting the new loan.

I'm wanting to spend about $20k and go about $4500-$5000 down so I'd have to finance about 15k. I had also thought about the equity in my car being something I could use as collateral after I pay it off but wasn't sure that would be even a last ditch option.

[MostlyAwake]

Ps. I'll have about 16k in equity when I pay the car off for reference.

[pipeguy]

I would guess that using your current credit union that you'll have no problem getting a loan - Credit unions tend to treat their members well based on their history ranther than a cold app - you might want to call them since they have your history and will be the lender anyway.

[Anonymous]

It depend's what kind of credit union it is, many small banks and credit union's are "relationship lenders" meaning they will lend to you based on your relationship and history with them and overlook some other issues you may have with your credit. Other financial institution's aren't quite as nice and don't value relationships as they strictly look at your credit history in general. I would say with the low LTV you will have given the down payment and your auto history payment, you should definately go for it and worst case scenario I am sure there is a lender out there that will finance you.

[Anonymous]

I wouldn't count on a lender overlooking a subprime score based on having a good payment history with them.  It would be well worth it to spend a few bucks and get your actual scores so you can operate from a position of full information.   Your problem with your scores are going to be a thin profile with these medical negatives.  If you can wait a bit you can rebuild your scores fairly easliy most likely by adding some positive tradelines and negotiating these medical collections or even having them removed (there are ways folks work medical collections). Those couple of things would help a ton.

On the auto purchase having 16k of equity will help the loan to value ratio but most lenders put a high value on scores and the interest you end up paying could be significant.

[MostlyAwake]

I am aware of the "process of which you can't speak" to get the collections removed. Negotiating them down or off isn't an option. They are all owned by 2 collectors who arbitrarily will not work with you for anything less than the amount owed. I do not nor will I ever have the $800,000 to pay them.

And this is ignoring the fact that I'm on 3 month oncology, 6 month radiology and 1 year colonoscopy followups for the rest of my life and it all amounts to more than I can keep paid. I pay for the medicine because I have to take it and my visit Co pays because I have to do them. The rest is treated with a "can't pay it all so don't pay any of it" attitude so I'll have new collections going in as fast as they come off and it will stay that way forever. The only change will be the 3 month visits going away when I hit 5 years.

I know its common to suggest fixing my file but it genuinely isn't a possibility in my case. It would be easier to just pay cash and eliminate the need for credit entirely.

[Anonymous]

Not saying to go with the nuclear option but maybe in your scenario it would be worth looking at bankruptcy?.. 

[MostlyAwake]

I'd just have new stuff go on and eventually pile back up anyway. It's not a matter of being responsible and paying it. It's a matter of the recurring cost being larger than the total sum of available money that exists to pay it. I could handle some of it but half of it would still slip through my means.

I've considered a BK but it would just be a process that eventually ended up right back where I am but with new derogs I'd assume.

[Anonymous]

other's may disagree but In my experience, Medical Collection's are a little different than other types of collections. A lender looks at medical collection's far different than they due a charter communication collection...Medical collection's aren't good to have by any means but in some cases lender's turn a blind eye to them especially if there is a good story behind them and you are dealing with a relationship lender such as a small credit union.

[Anonymous]

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@MostlyAwake wrote:
I am aware of the "process of which you can't speak" to get the collections removed. Negotiating them down or off isn't an option. They are all owned by 2 collectors who arbitrarily will not work with you for anything less than the amount owed. I do not nor will I ever have the $800,000 to pay them.

And this is ignoring the fact that I'm on 3 month oncology, 6 month radiology and 1 year colonoscopy followups for the rest of my life and it all amounts to more than I can keep paid. I pay for the medicine because I have to take it and my visit Co pays because I have to do them. The rest is treated with a "can't pay it all so don't pay any of it" attitude so I'll have new collections going in as fast as they come off and it will stay that way forever. The only change will be the 3 month visits going away when I hit 5 years.

I know its common to suggest fixing my file but it genuinely isn't a possibility in my case. It would be easier to just pay cash and eliminate the need for credit entirely.

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I am sorry to hear you are going through this.  Terrible situation. Your case shows the fundemental flaw with our healthcare system.  I have worked in healthcare for almost 30 years and hear these terrible stories far too often.    I hope things work out with your credit union, perhaps they will view these medical collections differently.  I know for some of the government sponsored mortgage programs they disregard medical collections, unfortunately the FICO folks don't differientiate.