What To DO?

[Andy77]

So I applied for an auto loan through Lending Tree....I have been at my job since 2009, my debt is at 44 % (so 60k available) income is 196k

I asked for an auto loan for 53k and said I was going to put down 25k (total of car is roughly 72k)

I have a current auto loan through penfed 1.99 60 months bal is 19k

Lending Tree pulled TU which uses that enhanced score so my score was in the toilet 608

Through Lending Tree, I only got approved for 35k with Roadloans with 10 % APR...obviously that will get me nowhere ha ha

I am assuming with my situation, credit file etc...Lending tree will not work OR any lender that pulls TU

My credit is good enough to get a 1.99 60 month with Penfed (I have that now)

So...any suggestions ?

I can't believe a lender will not give me a 53k loan with 196k income and 25k down on a car

[Andy77]

So my TU score is 608 but my my fico EX score is 677..big difference.  I have not pulled my TU though myfico yet, but I am sure it would be 608

When I put in the simulation of making a lump sum payment to pay off all my debt of 44k my score, according to the simulator on my fico would only bring my score up 10 points to 688

I have a feeling the simulator is wrong and it will go up more

[FeeBear]

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@Andy77 wrote:

So I applied for an auto loan through Lending Tree....I have been at my job since 2009, my debt is at 44 % (so 60k available) income is 196k

I asked for an auto loan for 53k and said I was going to put down 25k (total of car is roughly 72k)

I have a current auto loan through penfed 1.99 60 months bal is 19k

Lending Tree pulled TU which uses that enhanced score so my score was in the toilet 608

Through Lending Tree, I only got approved for 35k with Roadloans with 10 % APR...obviously that will get me nowhere ha ha

I am assuming with my situation, credit file etc...Lending tree will not work OR any lender that pulls TU

My credit is good enough to get a 1.99 60 month with Penfed (I have that now)

So...any suggestions ?

I can't believe a lender will not give me a 53k loan with 196k income and 25k down on a car

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Hey Andy,

      I am going to hate myself saying this, but did you can let the dealer get you the loan. I know I was in a similar position as yourself 30% Util on CC 225K income and I purchased a M4 which I put down 20K and my loan 63K and they (the dealer) found me a deal w/ Chase for 3.09%.

Fee

[Andy77]

Thank you for the reply.  I forgot to mention I have a 6.5 yr old BK on my report with 10 closed accounts counting against me...but all on time since 2009 when discharged

Cap one gave me two credit cards with 30k limits so I know I have recovered since the BK, but I know it is counting still

In regard to your question...NO I just on a whim decided to try lending tree on my own....punched in all the info and got a terrible rate and the loan was about 20k too short

My plan now is to run any future apps through the dealer, after I pay off the 44k in debt and hopefully my score will go up more then 10 points

[StartingOver10]

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@Andy77 wrote:

Thank you for the reply.  I forgot to mention I have a 6.5 yr old BK on my report with 10 closed accounts counting against me...but all on time since 2009 when discharged

Cap one gave me two credit cards with 30k limits so I know I have recovered since the BK, but I know it is counting still

In regard to your question...NO I just on a whim decided to try lending tree on my own....punched in all the info and got a terrible rate and the loan was about 20k too short

My plan now is to run any future apps through the dealer, after I pay off the 44k in debt and hopefully my score will go up more then 10 points

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^^^Remember to negotiate the interest rate with the F&I guy. I too have a Bk that was discharged in Jan 2009 and Chase picked up my auto loan through the dealer exactly 2 years from my discharge. Granted, it was a smaller loan but the F&I guy started out at a huge double digit interest rate (12% IIRC) and I negotiated to 7.14% (at the time).

You have been out out Bk for much, much longer. Plus you have a PenFed loan out at a much lower rate right now so you should be able to get the best rates - especially with $25k down so your LTV is low. Don't let the F&I guy 'shame' you into a higher interest rate. You are close to having all the 10 iib tradelines drop off your report (7 years). Plus you already have an excellent rate with PenFed on another vehicle, use that to your advantage.

is there a reason you aren't going back to PenFed to get the same rate on this new loan? Or is that not an option now?

[Anonymous]

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@StartingOver10 wrote:

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@Andy77 wrote:

Thank you for the reply.  I forgot to mention I have a 6.5 yr old BK on my report with 10 closed accounts counting against me...but all on time since 2009 when discharged

Cap one gave me two credit cards with 30k limits so I know I have recovered since the BK, but I know it is counting still

In regard to your question...NO I just on a whim decided to try lending tree on my own....punched in all the info and got a terrible rate and the loan was about 20k too short

My plan now is to run any future apps through the dealer, after I pay off the 44k in debt and hopefully my score will go up more then 10 points

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^^^Remember to negotiate the interest rate with the F&I guy. I too have a Bk that was discharged in Jan 2009 and Chase picked up my auto loan through the dealer exactly 2 years from my discharge. Granted, it was a smaller loan but the F&I guy started out at a huge double digit interest rate (12% IIRC) and I negotiated to 7.14% (at the time).

You have been out out Bk for much, much longer. Plus you have a PenFed loan out at a much lower rate right now so you should be able to get the best rates - especially with $25k down so your LTV is low. Don't let the F&I guy 'shame' you into a higher interest rate. You are close to having all the 10 iib tradelines drop off your report (7 years). Plus you already have an excellent rate with PenFed on another vehicle, use that to your advantage.

is there a reason you aren't going back to PenFed to get the same rate on this new loan? Or is that not an option now?

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Wondering exact same thing

[Andy77]

Thank you for all the replies.  I can try with Penfed.  I have two credit cards with them that I pay on time too and I will pay off before I apply for the loan.

My current loan with them is only for 24k....new loan will be a lot higher....45-53 depending on the car.

I could put down 30-35 k but I don;t think that will get me a better interest rate wtih Penfed.

I am just so shocked that Lending Tree only came back with ONE subprime lender at 10.25 APR....sometimes credit makes no sense

[Andy77]

Well I found out when I did the app I said I still had a BK and that was a mistake so I re-did the app and Up2Drive approved me up to 50k at 5.99

Having said that, I think when I pay off ALL my debt my score will jump I am hoping 40 to 90 points because I am at 45 % utilization now.

After I pay off the debt and just have my current auto loan as debt I will do another app and I HOPE they can get me a lower rate then 5.99

I am assuming that your credit score and report have a lot to do with the interest rate ?

[Anonymous]

Yes the score and the report are major factors, since you have a relationship with Penfed and are paying them on time I am sure they are your best bet.  Credit unions in general seem to look at the bigger picture, especially when you have a good relationship with them already.  Just curious, what are you going to get??