This really stings. After paying off much debt and trying to get back on the right track of responsibility and commitment, I applied through Capital One's Auto Program (I've received at least 2 of their pre-approval letters in the past 6 months) for a $25k limit. They declined me. No written explanation as of yet. Since my FICO is only 598, I should have realized that, at this point, financing was going to be hit and miss. And I wouldn't have considered Cap One, except for their letters. Now I've got who knows how many hard inquiries on an already fragile FICO. Since my current (Ford Credit) lease is almost up, I'm gonna need a vehicle. Ford Credit may be an option, but I had several 30-day and 60-day lates with them two years ago. So it's not a lock by any means. Any recommendations out there for auto financing? I'll pay the high rates now and refinance in a year or so.
I would go and talk with Ford Credit. Even though you've had late payments, you have paid the lease to maturity, so that's a plus. Ford is hurting bad right now, and they might be willing to finance you to get a sale. A credit score of 598 is well within their limits. Remember, the first interest rate or payment the salesperson offers you is not the best one they can give you. Ford may approve you at 6% interest, but the salesperson will offer you 7.5%. If you accept, the dealership keeps the 1.5% difference....
COAF pulls all 3 bureaus, merges them & uses a internal scoring system. They do not "rehash" deals as many auto credit lenders do. That being said your scores are high enough that your file can be submitted to many secondary lenders who will have a analyst make the credit decision & not a computer. Most other lenders can use common sense. Your scores are high enough but all your credit factors will be weighed in such as length of employment, dti, pti, equity/down pmt on your new purchase, poi, recent collections/slow pays. Was your lease cosigned? Which solicitation did you get from COAF the offer to apply online in your cc statement or a letter with a application on the back?
Interesting you bring that up. I've spoken to Ford Credit on a couple of occasions (basically so that I could try and find out where I stood credit-wise at the end of my lease) and they won't discuss anything of substance, other than to tell me to go talk to a dealer and they'll "apply" for me at that time. Makes me suspicious.
My lease began in 2000, no co-signer. Had several lates in 2001, but got back on track in late 2001. No problems since. COAF sent me the pre-approved letter last December, then again in April of this year. At that time, I was still too far away from lease-end to consider another car payment. As such, I didn't bother accepting. Little did I know that it really wasn't a pre-approval, rather, a pre-approved "invitation" to apply.
Re: Re: Re: Cap One Auto Denied Exactly. I still drive past dealerships with signs reading "NO CREDIT APPLICATIONS REFUSED".
