Just tried my luck w/PeopleFirst & was turned down for a $9K used auto loan ... Not sure why, considering I used my folks as joint applicants & I have only two very old negs reporting in my credit files ... One is a $1K judgment & the other is $4K paid C/O from '94. PeopleFirst is sending a letter regarding the reason why I/we were turned down ... I am very curious to know why they couldn't respond with a phone call or include the info in an email!??? Anyway... While researching auto loans, I ran across some helpful info which might prove useful for those of you looking for auto financing... TIPS FOR SUCCESSFUL AUTO LOAN NEGOTIATIONS (whether you are approved or declined from a direct lender) 1. It may not be required, but prepare to have, cash, trade-in or combination of both for 10-20% down payment. 2. If using a CO-applicant: Spouse/Partner or Friend who can help finalize the purchase - They can prove useful for: A. Maximizing your credit score - Person with best credit should always be first name on application. B. Helping a first time buyer or a buyer with less then perfect credit. C. Meeting income minimums (usually $1,500 gross for a single applicant and $2,000 Joint) is required. D. Increasing your spending power. E. Balancing debt to income.
Putting a co applicant or co signer on a car loan application is outrageous. That person is opening themselves up to potential liability if the primary borrower gets into an accident. Also, guess what.... Usually these days you are required to get an auto loan THRU the dealer in order to qualify for the lowest advertised or negotiated price. You are also NOT ALLOWED to put down more than 15% in cash. What is the actual interest rate that you will pay with imperfect credit (less than 650 FICO). Its a great mystery. Interest rates aren't mentioned on people first, eloan, bar none, or even the dealer. No one will tell you what your interest rate is, only what the monthly payment is, and what car you can qualify to buy.
A charge off from 94 should not still be on your report. Dispute it as obsolete right away and it will disappear in a matter of days.
Also, people with imperfect credit (less than 650, NO MATTER WHAT THE REASON) should not buy a car from a dealership. Since used is all they will qualify for, they probably will not get an interest rate lower than 14% (at best). If you have bad credit & no cash to pay fair market value (not dealer retail price) then you can't afford the car, PERIOD. Also, the rule is that anything negative on your credit report counts whether it is from 6 year ago or 6 days ago. If it is on their and you can't get it deleted, you are screwed. A perfect payment record on a previous auto loan, but a paid chargeoff and one or two lates on a credit card will put into the 14% + 5 year old used category of customer. Buy from a third party, friend, relative & pay $100 for a full mechanical inspection. Wait until your FICO is above 700 before you buy from a car dealer.
Doesn't matter. The fact of the matter is that it is the responsibilty of the consumer to get the CRA's to delete it. If the derogatory item is on your credit report, it doesn't matter if it is from 1994 or 2002, it counts the same regardless. The FCRA is no more powerful than the paper its written on. If you can't get it done, who are you going to complain to: the media??
Re: Re: Helpful Tips For Loan Apps... Yes....that is true that it is our responsibility to get it removed UNLESS it is passed the seven year mark. Then it SHOULD be the CRAs responsibility to remove the item even though they don't always. READ the FCRA and you will see. As far as the Derog from 94 or 2002 being the same, that isn't true. The older the derog the less it counts toward your score.
Re: Re: Re: Helpful Tips For Loan Apps... In this world WHAT SHOULD BE DONE and what actually is done are two very different things. It is very difficult for the average person to get thru to the CRA's even to correct errors that are in no way theirs. The CRA's act as they are above the law, and they can make your life a living h*ll. I have been told the same thing countless times by auto lenders, they can't approve me at anything less than 15% because of a paid chargeoff from 2000, and 2 lates in a 5 year period. My FICO is around 625 middle score. When I point out that I paid my last used car loan (at 13.9% being a first time buyer) with Chrysler Financial 2 years early, never being late with a payment, I was told that this doesn't matter, that they look at your total credit report and FICO score as a whole. Many F&I mangers got insulted and accused me of wasting their time when I declined their financing and offered to pay cash, because according to them I could not get anything close to a prime rate anywhere, and that they were doing me a favor by getting me into a vehicle.
Re: Re: Re: Re: Helpful Tips For Loan Apps... You need to read this board 50 times a day so the wealth of information sinks in. It is quite simple to contact the CRAs to dispute ANYTHING in your credit file. That is what this site is all about. Yes, it can be tough but it can be done. I am living proof. Have you tried to dispute the accounts on your report??? If not, do it. We will all be willing to help you along the way.
Putting a co applicant or co signer on a car loan application is outrageous. That person is opening themselves up to potential liability if the primary borrower gets into an accident. NickL ================== Are you sure it's the app,or do you mean the title ?
Re: Re: Re: Re: Helpful Tips For Loan Apps... Ain't that the truth! been dealing with Exp. again, huh?? Head for the credit union. You'll get a loan at 8% or under easily. The F&I dep't is a cash cow for the dealership. Of course they "can't get you approved" at under a gazillion percent. Never mind that they probably already have, and have marked it up several points to add a bit of profit to the deal. They really hate cash deals as they can't pad them as easily. They'll use any and every blemish on your report as a reason to squeeze you for that extra few points. I often saw people get the promo rate with scores like yours. Others got the royal squeeze. Who got what depended on whether they "aqreed" that their credit was bad, or stood their ground and brought in a competitive offer, or two. -Radi8 (former F&I Guy)
Re: Re: Re: Re: Helpful Tips For Loan Apps... $4K paid C/O from '94. wildbill ================ Mr. hiccup Why is this still on there after 9 years? The 7 year reportingtime was up 2 years ago? This is 2003 not 2001 !
Re: Re: Re: Re: Re: Helpful Tips For Loan Apps... (former F&I Guy) Radi8 ================= What does F & I stand for Fleece and Injure?
Re: Re: Re: Re: Helpful Tips For Loan Apps... The older the derog the less it counts toward your score. DISPUTER =================== This is true and yet it's not true. While it may have minimal effect on the score it can still have a major impact on what the dealer charges you if he increases the interest rate simply because he saw it on your report.
Re: Re: Re: Re: Helpful Tips For Loan Apps... Many F&I mangers got insulted and accused me of wasting their time when I declined their financing and offered to pay cash, because according to them I could not get anything close to a prime rate anywhere, and that they were doing me a favor by getting me into a vehicle. NickL ================ ================ Man what a line of total Bull : Question is who's spreading it the F&I or NickL ? The END ************************* LB 59
You are also NOT ALLOWED to put down more than 15% in cash. THIS SOUNDS REAL LOGICAL!!!! SO YOU CAN'T DO A 50/50 LOAN??? 50% DOWN 50% LOAN??? They must have more business than they need... I have not seen the long lines at the dealerships on the news!!! I GUESS I GOTTA' GET OUT MORE AND SEE THESE LONG LINES AT THE DEALERSHIPS!!! I just live the WRONG way from the dealerships...
Re: Re: Re: Re: Re: Helpful Tips For Loan Apps... Radi8 this is the guy just last week that was claiming Credit Unions can't/won't help you, no need in responding to his posts, everything we say he says that we are wrong, see here: http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&threadid=44789
Re: Re: Re: Re: Helpful Tips For Loan Apps... Also, guess what.... Usually these days you are required to get an auto loan THRU the dealer in order to qualify for the lowest advertised or negotiated price. . Originally posted by NickL ======================== That's not the way it works nickey boy: Least wise not with me. When I deal for a car I set the price not the dealer. The END ************************* LB 59
Re: Re: Re: Re: Re: Helpful Tips For Loan Apps... Considering everything Nickl has said, I would have to go with the latter. I think he/she is full of crap.
