Equity in car figured into personal loan approval ?

[Andy77]

Golden 1 CU has my auto loan that I started with them in June of 2022. I owe 44k and car is valued at 60-65k. They also have my Visa card that is about 6 months old, 7k limit zero balance. Usually always pif.

Recently I applied for a personal loan for 18k and was approved. I was a little shocked since I am only 1yr 7 months post ch7 discharge and I have another unsecured loan for 18k with another lender. 

None the less, I am curious, do you think they approved me for the personal loan because they have my auto loan and I have 20-25k in equity in my car ?

Thank you .

[tcbofade]

Hmmm.  Doubtful.  Generally secured debt and unsecured debt are in fairly different worlds, even in the same lending institution.

Congrats tho.  Yay you!

[iced]

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@Andy77 wrote:

Golden 1 CU has my auto loan that I started with them in June of 2022. I owe 44k and car is valued at 60-65k. They also have my Visa card that is about 6 months old, 7k limit zero balance. Usually always pif.

Recently I applied for a personal loan for 18k and was approved. I was a little shocked since I am only 1yr 7 months post ch7 discharge and I have another unsecured loan for 18k with another lender. 

None the less, I am curious, do you think they approved me for the personal loan because they have my auto loan and I have 20-25k in equity in my car ?

Thank you .

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Cars are almost universally seen as depreciating assets and rarely ever considered as equity for any financing aside from an auto loan.

Positive payment history on loans/credit lines of similar amounts is going to do much more to convince a lender than equity on a car. Thus, I assume you got what you got not because you have 'equity' in a car but because your loans are indicating you're a lower risk to repay tens of thousands of dollars.

[pizzadude]

Did you tell them that you were planning to pay off your other personal loan with the proceeds of this new personal loan?   Not sure if you are going to do this but that may have helped in the decision. 

Ultimately the approval comes down to your credit, payment history, and ability to pay ( DTI, etc.. ).   I agree with the others that while the equity in your auto is good, it likely didn't make an impact, but your good payment history with this lender certainly did.