Want to App 3 CC's - better to do it before or after Applying for New Auto Loan?

[Anonymous]

I wasn't aware you could try recon with auto loans....   

I did call the bank after I got the denial and they said I will get response in mail in 5-7 business days and that I could appeal.......    not sure what the appeal process does either.....   I have another Cap1 Auto Navigator pre approval for $50k but it expires on the 31st and not sure what bank or Credit Union I should try after this denial to keep my HPs limited but maybe I should try the secure message thing with NavyFed first.....

[Traveler101]

Just guessing, but possibly loan to value could cause a decline. Penfed gives up to 110% ltv. and fast approvals, if that was indeed the issue

[Anonymous]

During the APP I wasn't required to list the Vehicle ....  It gave me 2 options a) I have decided on the vehicle and ready to apply for loan or b) I'm not sure which vehicle I want but want to get pre-approved for the loan .....    so the value of actual vehicle is unknown at the moment.... 

there was an option to input the VIN but I won't have the VIN active until tommorrow or Monday when the Window sticker is populated.

[Traveler101]

I would not go any further untill you have vin, etc. Penfed will do 110% and approvals generally done over the phone on hold. First they calculate its worth, then reach out to underwriter for an approval. I was in and out dealership in 20 min, in new car, best rate, and a score less than yours. Of course, every situation is different. But I am thrilled how penfed handled it. Its your call, and I wish you all the luck!

[Anonymous]

@local1 Wow, I can’t believe Navy denied your app. If recon is possible, it can’t hurt to try.

Are you a member of PenFed? What is the rate CapOne has offered you?

[Anonymous]

Yeah, I was pretty miffed also....  especially after going through the numerous approved loans in the "Auto Loans Approval" thread...   I'm not going to do anything else until I get the actual VIN next week..... 

 I just checked Cap 1 again and the auto navigator is a "pre-qual" not considered a "pre-approve" but it was for $50k listing APR at 4.37%  or 3.88% w/ 20% down payment.   I was expecting the loan app would prob be reviewed and that maybe I had to provide POI or put some $ down but didn't even get that far.   I was planning on putting $ down but if I wasn't required to make a down payment, I was going to use my down payment to instead pay down the principle once the loan posted.   (NFCU rates were 2.49% 60 mths or 2.99% 72mths; I am not a member of PENFED)

[Traveler101]

The intrest rate at cap1, while preapproved, is going to vary, when you pick a specific car, terms, etc. It will evaluate your deal, at purchase.

Penfed, easy to join thru a partnership. I would at least call them and have a talk with them, like I did. I was a non member and they were happy to answer my questions. Also, with the cu, you have options of disability ins, etc. You never know what life is going to throw your way. Cap1 doesnt offer it. Ive had both, c1 dor auto, and penfed. Penfed wins hands down.
Im really suprised at Navy tho, in a decline. Scratching my head over that one. I love Navy over penfed for cc, hands down. I love pfed for my car.

Will say this tho, at time I bought my car, bk, chap 7 5.5 years old. 3 account closed that were inc in bk. 685 score, and got tge best rate. I dont apply much, and my rebuild, dti, all in check.
You have a lot to consider. I hope the choice you make, will be the one you are happy with. Good luck!

[Anonymous]

I am going to wait until I receive the denial letter and see what it says, the only thing I can think of is I haven't had an auto loan in 15 years other than that I'm kind of clueless after spending hours reading DPs on the forum..........  I will look into DCU and PenFed, I bank with PNC and wellsfargo so might check them out and read up some on Alliant.   I was playing around with the Cap1 and if I put $10k down APR drops to 3.39% but I don't want to habe to play the Dealer games.  I checked the NADA value of my car and my purchase price w/ taxes and lic. is about $4500 below NADA price so LTV shouldn't be an issue anywhere.  I got hit with 2 HPs yesterday but so far only creditkarma and credit sesame have alerted me of the HPs, nothing from Experian(creditchecktotal) or MyFico in which both  I pay for.

[Traveler101]

Youre going about it with the right strategy. Hats off to you for doing all your homework.

[Anonymous]

@local1 I'm still shocked Navy denied you. I mean, you are a newer member, but still. I'd love to know the reasoning on that one!

Good news is, installment loan inquiries are buffered 30 days, so the pull shouldn't affect your score for 30 days. Bad news is a pre-qual cannot be relied upon. I thought you had a pre-approval. (Big difference.) The Cap1 may or may not be approved. Any members familiar with Cap1 pre-qualifications?

You definitely wanna have financing in order before you deal with the dealer. And you wanna do it before that first loan inquiry hits in 30 days or your score will decrease.

I did have one member who seemed to be having a good experience with PNC, but Navy approved him, so no follow thru. But they had sounded good. I think they hit TU usually.