Denied 2nd Auto Loan

[CreditInspired]

I agree with others that DTI may be a factor. If it is, my recommendation would be to take the $8K you were planning to put down on $40K vehicle, and pay the majority of mom's car loan off and try again. JMO

GL2U

[Anonymous]

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@CreditInspired wrote:

I agree with others that DTI may be a factor. If it is, my recommendation would be to take the $8K you were planning to put down on $40K vehicle, and pay the majority of mom's car loan off and try again. JMO

GL2U

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This won't help with DTI calculations at all. DTI is calculated by adding the monthly payments of all obligations on a credit report and then comparing that number against the person's monthly income. Reducing balances on installment loans does not improve DTI because it does not change the monthly obligation. If this loan could be paid off entirely, then that would certainly improve the DTI scenario.

[Society1]

Thanks for that info. Because I definitely thought the DTI would help for sure 

[Society1]

It's not false why would I post something and lie? Clearly said I was not eligible for a 2nd loan because of the one I got in may even after I asked to put 20% down. 

[Anonymous]

I've had lenders do this to me before. With 2 cars, they see a higher chance you'd be willing to stop paying on 1 of them if you hit some hardship. In your case, it seems far less likely - but common sense doesn't always prevail. 

I'd check a credit union - they seem far more concerned with only your DTI. I got a car loan, a car loan refi, and credit card all at the same time as opening an account with a local credit union this year. 2 months later, a motorcycle loan. i had a 703 f8 when opening, a 704 on the motorcycle loan.