new to this..

[Anonymous]

So everyone knows black friday is coming...and my mom and I were hoping to get a new/partially used car. most likely the honda civic. 

However, she has applied for auto loans in the past and have been denied. From what she's told me, she has a mortgage loan, and a $400 balance with macys. Also, she was associated with my dads business which he had to file a chapter 13 bankruptcy which she says is supposed to go off by january.

I'm planning on pulling her credit report tomorrow, but I was wondering what the chances are of her being able to acquire a auto loan and where should she try to get it from.

Lastly, worse case scenario. She was wondering if I could pull an auto loan. I currently have a discover card (2 years), and just got a citi forward that have all been paid in full. from pulling my credit score not too long ago i'm in the 700+. The only thing is that I have student loans..

Any advice would be great! Thank you so much..

P.S.

i'm sure there is a bunch of other factors that I need to be aware of...but hopefully someone can fill me in..thanks! 

[cdtotten]

What we need to know...

- Annual income

- Current FICO credit score(s)

- Past auto experience

- How long on your current job?

- Past delinquencies on your credit report

- Price of the car you are looking to purchase

- Required monthly payment... including Mortgage/Rent payment, minimum payments on CCs, student loans, installment loans, etc.

[casmith1980]

from my personal experience, I will NEVER co-sign on anything, for anyone!  Well....I suppose I might for my mom, but that wouldn't be necessary since she has an 805 Fico.

The only question I have for you is, IF your mom didn't pay the auto loan, could you afford the payments on your own?

[Anonymous]

IME, having a CH 13 is not a deal breaker when looking at an auto loan.  DH & I have gotten two, both with great rates, with the CH 13 BK still reporting.  We  opened both of these loans with a local CU that does a majority of the car loans in our area.

When your mom (maybe with your help) pulls her credit report, be sure to pull a FICO score.  She can get an EQ FICO Score through the "Scorewatch" 10 day free trial on this site.  Cancel before the ten days to keep it free.  That report will also show what car rates her FICO score is likely to qualify for; and some helpful info on what's helping/hurting her FICO score; and a simulator to see what to do as she moves forward.

And - depending on her circumstances - mom may want to consider paying off the Macy's to zero.  Macy's doesn't report a CL, and they have a super high interest rate.

[Anonymous]

First off, I'd like to say thank you so much for the fast reply guys! 

Cdtotten:

So from what i've been able to get from her already.

she makes about 107,000/year and has been working at this company for about 6 years

She leased a car back in 1997. and hasn't bought a new car since. 

The car was estimated to be within the 17k-18k range. Hopefully we'll be able to find a 2011 that's cheaper. 

The mortgage and credit score i'll have to get back to you on. Hopefully by tonight =) 

Casmith1980:

That was exactly my thought. I'm currently paying for applications for grad school interviews etc..so in my opinion it would be hard for me to pay the auto loan in addition to everything else. this is also the reason why i haven't jumped the gun. 

beammeup: 

The scorewatch trial is exactly what I plan on doing when she gets home. That way I can ensure that she is also aware of what exactly is on her credit report since she never pulls it...  I've already told her to pay off the macy's card whch I believe she did last night so that shouldn't be a problem. 

Again, thank you so much for the advice guys, i'll update again after I get the FICO score. 

[Anonymous]

so her scores actually quite high..even shes surprised

her equifax was a 717

hurting her is a deliquincy in 2002. has been completely paid off.

3 credit inquiries (june 2011, 2010,2010)

1 was for a rental car. 

any ideas on banks to go to for an autoloan? thanks!

[Anonymous]

Have you checked to see if any of the banks she may already have an account with are offering special deals? I know for me right now both NFCU and USAA have great deals going on new auto loans.

If there are no active deals through her bank I would go to the dealer and let them see what they can offer. If it's a new car purchase the manufacture finance arms have great deals. If it is a used car the dealer finance people have access to way more banks than you can shop and experience at who is most likely to buy the loan.

If you have been reading the forums at all, you should be able to determine what a fair financing rate is. If you haven't browse through the auto loan forum for a while before you and Mom go shopping. Best of luck.

[Anonymous]

Auto Lenders are a bit more forgiving than Credit Card's. Regarding approvals- They weigh Annual income and Debt to Income ratio's higher than anything else. Regarding Rate- That's where scores are factored in. I would check with your bank/CU to see if you qualify for a prime rate. You should go to the dealership with your finance ready. They tend to add points for their profits and they will also "shop" your credit further harming your credit score or the appearance of your credit report.

[StartingOver10]

IMO, your Mom's best bet is a credit union.  She will have an advantage in that there is only one hard pull for credit rather than the 5+ inquires that the dealership will put on her report. In addition to that, she will have her financing in place before she shops which will keep her from getting a hosed by the F&I guy at the dealership. ( It's typical for the dealership F&I guy to add as many points as they think you will allow them.)   CU's will certainly give her all of their criteria before you and she shops (max LTV and other items).

[Booner72]

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@Anonymous wrote:

so her scores actually quite high..even shes surprised

her equifax was a 717

hurting her is a deliquincy in 2002. has been completely paid off.

3 credit inquiries (june 2011, 2010,2010)

1 was for a rental car. 

any ideas on banks to go to for an autoloan? thanks!

---

Unless that is a Ch 7 bankruptcy, then that 2002 "delinquency" should be LOOONG GOOONNEE from her reports.  remember the 7 year credit reporting time frame.  Dispute it with EQ saying that it has been on too long.  Good Luck!