What can I expect on this app?

Anonymous · ‎10-09-2016

An impaired driver hit me last week while I was borrowing my wife's car for the day. The other driver's insurance is giving us about $7200 for the now totaled car. We're going to our credit union on Tuesday morning to talk about a loan for a new or perhaps one to two year old car. We're looking for something in the $15k neighborhood. She's has a long credit history (about 16 years) with no missed payments or other bad marks. She had two car loans (about 12k and 14k) that we both paid off in 2011. She has a 30 yr mortgage in her name that is now in its 12th year with about $65k left (payments=$468). She has three credit cards: an AmEx with about $800 on it out of a $14,500 limit that is paid off in full every month, a Discover card with about 18k on it out of a 23k limit, a visa with this credit union we're applying for the car loan at that has about 7k on it out of a 11.8k limit. We've been working to pay down the Discover and visa with large payments. We're fine with reducing what we send them every month by the amount of our the payment in the car we're buying. Her Fico 8 is 772 on Equifax which is who this credit union pulls. Her gross salary is about 45k. The credit union told me that their interest rate for average credit would be 3.3 or 3.6 for average credit. How does this look to you guys? Can she do this on her own with a treasure maybe lower than that? We're considering putting only 1k to 2k down and sending 4k to pay down a good chunk of that visa she has with this credit union. Will they be ok with that? Should we tell them that when we check on Tue for pre approval? I make about 40k and have 6 credit cards that I got all within the last 6 months. My utilizations are all below 9%. I have a 728 Fico 8 but don't want another inquiry right now. I was worried we might have to apply together. If you need any more info, let me know.

Anonymous · ‎10-09-2016

Based on the info. you provided, your wife should be able to get the loan on her own easily.

Anonymous · ‎10-09-2016

Thanks for the reply. I appreciate it.

Sbrooks1 · ‎10-09-2016

I would even think she should qualify for 0, I know sometimes that's only available w special promotions, but def with that score would meet. See if any promotional offers are out there for the car you want

Anonymous · ‎10-09-2016

Thanks. I was a little worried how the credit app would go. We're looking at car rental sales. It's good to hear that she should be able to get the loan on her own and with the rate i mentioned or lower.

Appleman · ‎10-09-2016

FICO 08 is very solid.

Income of $45,000 / 12 months = $3750 monthly gross income

$3,750 X 40% (0.4) = $1,500 available for all payments showing on credit report. (To meet fairly standard lending criteria)

Very rough guess of $1,100 for minimum payments for House and 3 credit cards listed.

This leaves around $400 for a car payment if the bank wants you to keep your debt to income ratio below 40%

$15,000 loan at 3% for 5 years is $269.53 monthly. My semi-educated guess is that you will be approved.

It may be worth it to see what PenFed.org might do for you on an auto loan. One EQ pull for membership and an auto loan and if you wanted to pick up a credit card as well.

Watch out on that Discover, you are basically at 80% utilization and some lenders will not be happy with that amount.

Good luck and let us know how things work out!