What are my chances for approval?

[Anonymous]

I have a FICO score of 732 with three low limit credit cards ($200, $500, $3,000) and a short credit history of only 4 years. The car will cost just under $38,000.  I want a $18,000 auto loan and will be putting $20,000 down. I make just over $38,000 a year.

I've never had a big loan before.  I'm concerned I will be declined because of my short credit history and low limits.  Do you think I will be approved?

[trudawg660]

From what i see there is no reason for you to get denied. My history is shorter than yours and am trying to get a 28 thousand car. I make about 40,000 a year. this will be my first loan this big and am nervous if i will get approved. wish i could just apply right now so it will stop bothering me, but am trying to wait until 3 of my accounts update

Message Edited by trudawg660 on 04-25-2009 01:13 PM

[Anonymous]

Thanks for your reply trudawg and good luck to you. 

[Anonymous]

You will get aprovall.

The high down payment may even keep you with a best terms rate.

[Anonymous]

You make 38K a year and you have $20K to put down on a car? If that is true then no need to worry as with such a big downpayment no bank qill say no.

[Anonymous]

i just got approved with GMAC with 707 TU score and only 1 year and 4 months of history with the same 38k a year with 4k down on a 22,000 car so your chances are high i doubt any bank/CU will decline you

[Anonymous]

Thanks for all your replies. 

[PayingTheBills]

#1.  I assume you're already doing the following - letting 2 of your CC's report a $0 balance while the third CC reports a very small balance of a few dollars.  This usually ekes out a few extra points.

#2. Length of current job helps too.  

With a DP of over 50%, you should have no problem getting financed, and you should get an awesome rate too.

[Anonymous]

I was going to apply while having small balances on all three, but now I'll pay two off.  Thanks for the heads up.  I've been at my job for 3 1/2 years and I'm 24 years old.  Is that good or bad?

Two of my credit cards ($200 and $3000) and my checking/savings account are with Chase.  The $500 card is with Capital One.  Is it a good idea to start with one of those banks first?  My plan is to shop around for a rate I'm happy with and then try to get the 3.9% rate with PenFed.  Although, I'm not counting on it since I hear they're pretty conservative.  Also, I'm looking for a bank that doesn't penalize you for paying the loan off early.

Message Edited by ThePher on 04-27-2009 04:55 PM

[PayingTheBills]

3 1/2 years at your current job is a definite plus. 

You'll net a couple points by using that stretegy with your CC's, at least that is the general consensus here on MyFico.

With a ~740 FICO and > 50% DP and 3 1/2 years at your current job, I can't figure why you wouldn't be approved for ANY banks first-tier rates.

I would shop around at some local CU's too, the "Auto Loan Approval" thread is littered with good results from people getting financing through a CU.  Have you looked into Alliant?  They do "instant offers" when you join based on your CR, and I bet you'd get a really good offer on an auto loan.