I'm shopping for a car loan. I found a 2005 Mercedes E320. Total with Tax, etc is $23,987.15. I am putting down $5,000. I applied for a loan with a bank and a credit union, both pulling TU. Both told me my Auto Enhanced TU score is 640. Both declined! I don't know why. Loan to Vehicle value is less than 70%. My DTI is 3%. My CC util. is 0%. I have do have a couple charge offs from 3 years ago that are paid, and a paid medical collection from 2 years ago. Roadloans approved for $18,000 at 15.xx%.
I thought i would be able to get a CU loan with a 640 credit score.
The CU pulled your auto enhanced score and got 640? I wasn't aware that CU's pulled auto enhanced scores. I'm surprised you were declined by CU.... have you tried gw'ing the paid CO's & collections for removal? I would call area banks and tell them your scores and ask what rates they have available with your scores. If your in a relatively small area you may be surprised to find a bank that looks at history & not score.Go over your credit reports with them in detail. I called area banks for rates on DH auto loan and found a few that weren't score driven. Good Luck!
Another factor for denial would be work & income history...