All my bills are paid on time but I had a lengthy hospital stay several years ago and had hundreds of medical bills. In the process of paying and cleaning them all up, several fell through the cracks and have ruined my credit. To this day, I am still trying to straighten them out. I applied for a car loan with Capital One and got approved for 2.69% for $40,000 with a 571 credit score, how is that possible? Like I said, my credit is fine other than the medical bills in collections and I have a good salary but I thought companies only looked at the score. Capital One sent me the blank "check" and said just go to the dealer but I'm worried something is going to happen after I purchase the car and it will get denied or the interest rate will go up. What's the catch here?
Auto enhanced score? Several previous positive auto loans? No mishaps with revolving or installment credit tradelines? High number of positive accounts out weighing the collections? Collections marked as medical debts (for small amounts?) not weighed heavily in CapOne scoring model?
If you are worried about CapOne honoring the blank check, use it as leverage to negotiate with the dealership to get the same or even better rate.
maybe they use some type of auto enhanced version that does not take medical debts as a factor? Take the loan and run with it!
oh and don't forget to do some hard negotiating on the car! Dont get overly excited over the loan term that you're willing to pay whatever the salesmen offers. Don't even talk about loan terms until you fully negotiated the car price