Hi all,
I am trying to figure out something and need your help. I plan on buying a car in March and have been improving my credit for the last year. I have had one previous auto loan with Capital One, it was paid off about 18 months early and was never late. This past year I have been applying for pre-quals with Capital One (months apart) and get denied every time. The reason was too much debt. Recently I tried pre-qual with Chase and was also denied.
Here are my stats:
DTI: 6%
Fico Auto Scores:
EX 8: 712, EX 2: 698, EX 9: 701
TU 8: 722, TU 4: 690, TU 9: 685
EQ 8: 709, EQ 5: 737, EQ 9: 725
When I applied for my first auto loan I was still a college student and my federal student loans hadn't gone into repayment yet. However, I had 3 private student loans from a previous college where 2 were reported charged off 5 months before my auto loan and one was still in repayment.
Now, those 2 charged off accounts have been removed from my credit report (been 7 years since charge off) and the third private loan was charged off in 2017. I currently have this loan on a payment plan and there is no collection or judgement on my credit report. My federal loans are on an income based repayment plan with no lates.
I am guessing it is all of these student loans (federal and private) that are stopping me from pre-qualification? Carvana gives me a pre-qual at 7% APR. I am just hoping when I do apply in March for the actual loan it is A) not too high of an APR and B) not denied.
Are you a member of a Credit Union? If not, have you considered joining one, DCU, PenFed, local, etc.?
@AllZero wrote:Are you a member of a Credit Union? If not, have you considered joining one, DCU, PenFed, local, etc.?
Actually, I joined PenFed, DCU, and Consumers Credit Union so that when I officially apply I'll have some options, lol.
@TaylorTaylor wrote:
@AllZero wrote:Are you a member of a Credit Union? If not, have you considered joining one, DCU, PenFed, local, etc.?
Actually, I joined PenFed, DCU, and Consumers Credit Union so that when I officially apply I'll have some options, lol.
Excellent. You're in with great CUs. Your stats look good. DCU should pull EQ5. PenFed should pull EQ9, not sure on the auto loan side?
Here's a great read if you got time. Go to the last page and work your way backwards to compare the approvals.
https://ficoforums.myfico.com/t5/Auto-Loans/Auto-Loan-Approvals/td-p/252350
@AllZero wrote:
@TaylorTaylor wrote:
@AllZero wrote:Are you a member of a Credit Union? If not, have you considered joining one, DCU, PenFed, local, etc.?
Actually, I joined PenFed, DCU, and Consumers Credit Union so that when I officially apply I'll have some options, lol.
Excellent. You're in with great CUs. Your stats look good. DCU should pull EQ5. PenFed should pull EQ9, not sure on the auto loan side?
Here's a great read if you got time. Go to the last page and work your way backwards to compare the approvals.
https://ficoforums.myfico.com/t5/Auto-Loans/Auto-Loan-Approvals/td-p/252350
Thank you so much!
@blindambition wrote:
@TaylorTaylor wrote:
@AllZero wrote:Are you a member of a Credit Union? If not, have you considered joining one, DCU, PenFed, local, etc.?
Actually, I joined PenFed, DCU, and Consumers Credit Union so that when I officially apply I'll have some options, lol.
Those will be your best options, with rates that should beat any that would be given by Cap One.
Thank you!!
@blindambition agreed. Cap1 really only excels with consumers who have EXCELLENT well-established credit and/or decent credit and tons of equity.
Best of luck to OP!
