Seem to be stuck and can't get auto loan

[Anonymous]

Hello all,

Kind of frustrated here. A year and a half ago my scores we high 400s/low 500s. I have worked very hard to bring up my scores. I now sit at 655, 667 and 665 - equi, trans exp.

I make about 170k a year and have negotiated PFDs on some collections I had. The only one I couldn't get removed was LVNV so I eventually paid it as I want to buy a house when I can. So I have no collections. 

As for lates I unfortunately have 1 from this January. I thought my car loan was on Autopay and I got a notification stating it was 30 days late and my heart sank... Santander wouldn't goodwill. So I have 1 recent late.

Beyond that I have got a chargeoff from Creditone removed which was hurting. Then I have a 30 and 60 days late from Fingerhut for $60 2 years ago. Then a couple of 30 days late from Conns and one 60 days - 13 months ago.

With that being said that is the extent of my baddies and my scores have improved drastically. My car was totaled a few weeks ago due to flood damage and I am waiting on my insurance company to pay off the note. I cannot get approved for an auto loan anywhere. Denial after denial, even roadloans and capital one auto navigator. Everyone is saying the same - serious delinquency, etc. My CC utilization is 30% on $3000 limit. I am feeling VERY discouraged after working to get my scores here and now I can't even get an auto loan with 170K income.

How long is this "serious delinquency" going to kill me? I have no collections anymore. Not sure what to do.

[Anonymous]

@Anonymous most unfortunate and when you need a vehicle to earn a living it is most stressing! Likely you have already done this but, in connections with credit unions or lenders connected with the car manufacturers? Where I live their is one dealer that advertises if you have a job credit is not a problem (local guy). Again, you have probably done this?

[Anonymous]

Perhaps you can :

1) reduce your CC utilization down as close to 10% as possible.

2) Try offering to pay up to 20% up front as a down payment on your new car.  Making a larger downpayment might help sweeten the deal.

3). If all else fails, buy a cash car for the short term (now) and revisit getting a car loan in 3-6 months.

[calyx]

Are you a member of any credit unions?  My local credit union was really cool about me explaining my (major) derogatories and approving me for an auto loan.  Due to the derogs, they put a cap on the amount they would lend (80% of value), but they were a lot nicer than other financial institutions I talked to.

[pgtackle2003]

Hello, seems there are a few things working against you. Most of these other posters have mentioned already.

1) Your car was totalled recently. You're still waiting for the insurance payout. However, the issue here is it's still on your credit report. So as you're applying with CO, Road Loans etc they all see this active loan and thinking you're seeking a new 2nd loan. Since your credit is already on the lower side, they aren't going to want to lend to you for a 2nd loan. That's the hard part about these lenders, even though they do sub-prime lending they can't understand the situation through the computer application. A local credit union as others suggested may be your best hope. You also may be stuck until you get the insurance payout and are able to close your other loan so it shows closed/paid

2) Getting your CC utilization below 30% will give you a score boost. Would do this as soon as possible if you can.

3) You income is pretty high. So if you're able to bring any down payment to the table this will greatly increase your chances.

In summary, if you can go somewhere and talk to an actual person about your situation, this will probably increase your chances of approval.

[Anonymous]

Thanks for the feedback everyone. It sounds to me like lowering my utilization even further and waiting for insurance payout is going to be best course of action next to talking to a live person at a credit union. Appreciate the quick replies!

[AZEsq]

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@Anonymous wrote:

Perhaps you can :

1) reduce your CC utilization down as close to 10% as possible.

2) Try offering to pay up to 20% up front as a down payment on your new car.  Making a larger downpayment might help sweeten the deal.

3). If all else fails, buy a cash car for the short term (now) and revisit getting a car loan in 3-6 months.

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This is the answer. I don't know if you've pulled your 3B reports, but your Auto FICO is probably much lower than the rest. Installment loans are VERRRY sensitive to lates on other installment loans. They're also sensitive to your cc balances, more than a FICO08. Because you have such a recent late on a car loan, I would not expect them to play ball absent 20% down. Go for a less expensive car with the understanding that you can always trade up later. 

[coreysw12]

OP, for what it's worth, my credit was MUCH worse than yours last september, and Kia Finance approved me for a $30k car (albeit with a less-than-great 10% APR). I not only had a bunch of old bad debts, but I still had a number of things that were actively still reporting late/unpaid. My scores were pretty bad - I think my median Auto8 score was something like 610 (and my regular Fico8's were in the low-mid 500's). Frankly, I was shocked that I got approved. I didn't even have a trade-in, and I was only willing/able to put $1k down.

Anyways, if a Kia works for you, they seem to be VERY flexible with who they'll lend to, even with some really ugly things on your credit report.

[Hockeypnc1]

Can't you refinance that 10 percent KIA loan?

Ask Ally to help you. If you have an Audi with 4 percent, why not a KIA?

[Cleaningitup2016]

You make "about" $170,000 a year?

That's 14,166 dollars a month.

Should not even need an auto loan!