App for Marv, Going in Soon

[Anish]

Credit Application:

 

Your Age? 26

 

Your Equifax Credit Score? 692

Your Experian Credit Score? 742

Your TransUnion Credit Score? 721

 

How many years have you been on file with Equifax? 3yrs 2months

How many years have you been on file with Experian? 3yrs 2months

How many years have you been on file with TransUnion? 3yrs 2months

 

YOUR PREVIOUS AUTOMOTIVE CREDIT HISTORY

 

Do you have an open auto loan? No

Will this open auto loan be a trade-in?

How many late pays within the last 12 months on the currently open loan?

How many late pays within the last 13-24 months on the currently open loan?

Your current open auto loan is financed with?

Your current open auto loan payment is?

Estimated amount you may be upside down in this vehicle?

Rate your payment history on this open auto loan from 1-10 (1=poor:10=Best) N/A

 

 

YOUR REVOLVING CREDIT HISTORY

 

Total number of revolving account(s) you have? 4

Total percentage utilized overall? 33%

How many of your revolving accounts are store cards? 1

How many of your revolving accounts are major credit cards? (i.e. Amex, MC, Visa) 3

How many of your revolving accounts are known subprime credit cards (i.e. Aspire, 1st Premier) 0

 

YOUR PERSONAL INFORMATION

 

How long at your current residence? 3 Months

Do you Rent or have a Mortgage, or Live w/Relative or Other? Rent

Your Monthly Rent or Mortgage payment? $250

How long have you held your current job? 3 Months

Your total provable monthly gross income is? $5825

Your provable monthly gross income is provable via what method? (i.e. computerized paycheck stub, or tax return, or bank statements) Paystubs

Is there additional monthly income? What amount monthly? No

Describe the source.

Is the additional monthly income provable?

Spousal income is not applicable.

 

YOUR DOWNPAYMENT

Please tell me your exact down payment in cash? (rebates and trade equity are not considered, please input a dollar value only.) $2000 more if required

Does any credit repository contain any Public Record? No

If yes, please very briefly describe.

 

Does any credit repository contain any Collection Account(s)? No

If yes, please very briefly describe.

 

Please rate your overall creditworthiness on a scale of 1-10 (1=poor, 10= best) 7

Please rate your Installment credit history on a scale of 1-10 (1=poor, 10=best) 7

Please rate your Revolving credit history on a scale of 1-10 (1=poor, 10=best) 7

 

New or Used vehicle you are considering: Please very briefly describe. New Car loan through BMW FS - "select" loan, which what the dealer tells me will check my credit worthiness for 62% of cars price, the Car I'm looking for is a new 328xi for $43k with taxes. I'm not very sure on how this works though.

 

I could increase the down payment if it would be hard for me to get this approved. Also to what amount I could get approved for? Thanks a lot.

[MarvBear]

New Car loan through BMW FS - "select" loan, which what the dealer tells me will check my credit worthiness for 62% of cars price

 

Please explain. Don't understand.

[Anish]

New Car loan through BMW FS - "select" loan, which what the dealer tells me will check my credit worthiness for 62% of cars price

 

Please explain. Don't understand.

 

I'm sorry that is confusing, what I meant is if I go through the BMW's select financing, they would defer a balloon payment, that I'd have to pay off after my last monthly installment. That sum would be between 37%-39% of the car's cost, so the dealer told me that if I go through this, BMW would process my application for 61%-63% of the car's cost, i.e. they would check my credit worthiness considering I'm financing say $30k for a $50k car, that's what I figured from his conversation. I hope you understand what I'm trying to say, and if you could tell me anything about this, I'd really appreciate, and at this point I could get 1.99% Apr for 60 months, if I get approved, so looks like a decent deal to me. Any input would be helpful. Thanks again.

[MarvBear]

That's nothing more than a balloon payment, all I've seen have mileage restrictions.

 

Very similar to a lease contract, except your taxes are all paid upfront rather than monthly.

 

It may be that BMW FS is more lenient in those type approvals. But I have no direct experience with BMW FS, other than what is posted in the creditpulls database.

 

I would normally assume, in the absense of qualifying credit criteria, the application would be subject to approval with a qualified co-applicant.

[Anish]

That's nothing more than a balloon payment, all I've seen have mileage restrictions.

 

Very similar to a lease contract, except your taxes are all paid upfront rather than monthly.

 

It may be that BMW FS is more lenient in those type approvals. But I have no direct experience with BMW FS, other than what is posted in the creditpulls database.

 

I would normally assume, in the absense of qualifying credit criteria, the application would be subject to approval with a qualified co-applicant.

 

So with my credit history I would need a co-applicant to get approval? Also if I did put about $8000 down could that help in approval? Thanks again.

Edited August 18, 2010 by Anish

[mk_378]

Don't do the balloon loan. You still borrow the full price of the car with a balloon loan, just the payment schedule is different.

 

Typically when the DTI is the limiting factor, it truly means you are buying too much car for your income. The DTI formulas the banks use are rather liberal. If you push that limit it is almost certain you'll have trouble meeting the payments.

 

Balloon loans are very bad for the consumer. There is often considerable hardship at the end, because the car is rarely worth enough to cover the balloon payment. It is much like a lease but with the huge disadvantage that they don't guarantee to accept the car for full payoff at the end. With the lease you know you can just return the car and be done. With the balloon, if you can't or don't want to refinance and keep the car, you have to take what you can get on the used car market for it.

[Anish]

Don't do the balloon loan. You still borrow the full price of the car with a balloon loan, just the payment schedule is different.

 

Typically when the DTI is the limiting factor, it truly means you are buying too much car for your income. The DTI formulas the banks use are rather liberal. If you push that limit it is almost certain you'll have trouble meeting the payments.

 

Balloon loans are very bad for the consumer. There is often considerable hardship at the end, because the car is rarely worth enough to cover the balloon payment. It is much like a lease but with the huge disadvantage that they don't guarantee to accept the car for full payoff at the end. With the lease you know you can just return the car and be done. With the balloon, if you can't or don't want to refinance and keep the car, you have to take what you can get on the used car market for it.

 

That is a good point, however I was planning to make higher payments towards the principal, so I'd have quite less to deal with in the end. But if I go for, say a 3yr lease, is that easier to get than getting financing?

[MarvBear]

Don't do the balloon loan. You still borrow the full price of the car with a balloon loan, just the payment schedule is different.

 

Typically when the DTI is the limiting factor, it truly means you are buying too much car for your income. The DTI formulas the banks use are rather liberal. If you push that limit it is almost certain you'll have trouble meeting the payments.

 

Balloon loans are very bad for the consumer. There is often considerable hardship at the end, because the car is rarely worth enough to cover the balloon payment. It is much like a lease but with the huge disadvantage that they don't guarantee to accept the car for full payoff at the end. With the lease you know you can just return the car and be done. With the balloon, if you can't or don't want to refinance and keep the car, you have to take what you can get on the used car market for it.

 

That is a good point, however I was planning to make higher payments towards the principal, so I'd have quite less to deal with in the end. But if I go for, say a 3yr lease, is that easier to get than getting financing?

 

 

Balloon loans dont work that way. Be careful.

[Anish]

Don't do the balloon loan. You still borrow the full price of the car with a balloon loan, just the payment schedule is different.

 

Typically when the DTI is the limiting factor, it truly means you are buying too much car for your income. The DTI formulas the banks use are rather liberal. If you push that limit it is almost certain you'll have trouble meeting the payments.

 

Balloon loans are very bad for the consumer. There is often considerable hardship at the end, because the car is rarely worth enough to cover the balloon payment. It is much like a lease but with the huge disadvantage that they don't guarantee to accept the car for full payoff at the end. With the lease you know you can just return the car and be done. With the balloon, if you can't or don't want to refinance and keep the car, you have to take what you can get on the used car market for it.

 

That is a good point, however I was planning to make higher payments towards the principal, so I'd have quite less to deal with in the end. But if I go for, say a 3yr lease, is that easier to get than getting financing?

 

 

Balloon loans dont work that way. Be careful.

 

Ooh you mean I cannot make pre payments towards the balloon before the term of the loan, ookie. Btw as I was asking before could I get approved for this loan without a Co-Applicant? I could pay upto $8k down, would that help?

Thanks again.

Edited August 18, 2010 by Anish

[MarvBear]

If you would not otherwise qualify for the loan, then, Yes, a larger downpayment would improve your approval chances.

 

A balloon loan, just like a lease, is primarily designed to make something you can't afford, affordable in the short term. When that lease/balloon is up, many many consumers have end of term difficulties, simply because they really didn't do enough research on what they were getting into.

[Anish]

If you would not otherwise qualify for the loan, then, Yes, a larger downpayment would improve your approval chances.

 

So I believe chances of my approval are slim based on the information that I originally posted for the app?

Edited August 18, 2010 by Anish

[MarvBear]

Is there comparable installment history on file, that would convice someone like me to give you 43K?

 

I am not familiar with BMW FS and their guidelines other that what is posted in the creditpulls database.

[Anish]

Is there comparable installment history on file, that would convice someone like me to give you 43K?

 

I am not familiar with BMW FS and their guidelines other that what is posted in the creditpulls database.

 

Nope this would be my first loan app. So I guess giving it a try with higher down is as much as I can do. Thanks.

[Anish]

Is there comparable installment history on file, that would convice someone like me to give you 43K?

 

I am not familiar with BMW FS and their guidelines other that what is posted in the creditpulls database.

 

 

Pretty much my last question before I go in, What could be the max amount I could get financed for?

 

Thanks again for all your help.

[MarvBear]

I honestly don't know, simply because I am not at all familiar with BMW FS. I think they would certainly pursue every avenue to approve you. It would be reasonable for you to expect to pay for sales tax, tag, title, doc fees as a downpayment.

 

Best of luck.

[Anish]

I honestly don't know, simply because I am not at all familiar with BMW FS. I think they would certainly pursue every avenue to approve you. It would be reasonable for you to expect to pay for sales tax, tag, title, doc fees as a downpayment.

 

Best of luck.

 

Hi,

Posting again, but I found a car that should fit my credit profile, 2008 335xi, 40k miles, 32k, could this be approved with <5% apr anywhere?

[Adam B.]

Is the 335xi you are looking for a CPO from a BMW dealership? Their tiered rate structure for Standard/Elite/Super Elite starts at 675+ (auto-enhanced). As of last month, the rate was 3.9% for anyone in that range or higher. I can't offer any real experience in whether or not you'd get approved, but I'd wager that with $8k down, you'd have a fairly decent shot.

 

My wife and I went thru the process last month of testing the waters on a CPO 2007 328i. Rate would have been between 5.9 and 6.9%. Wasn't a good enough deal for us due to negative equity we brought into the deal, and ultimately, I think we made a good choice to pass on that particular offer.

 

One oddity we discovered during that process with BMWFS: When they pulled our scores from Experian, I got a 622 auto-enhanced. Then they pulled my wife's report and the F&I guy stated "it was not much better" than mine. Fast forward to last Friday at the Honda dealership where we replaced a 2008 Civic EX-L with a 2010 Civic EX-L, my score was 679, and wife's was 722 when pulled thru EQ/TU.

 

Not saying that the BMW dealer was pulling any shenanigans, and I can almost understand a 57-point difference; but an almost 100 point difference, with no major changes whatsoever in my wife's report - that just seems odd.

[MarvBear]

Is the 335xi you are looking for a CPO from a BMW dealership? Their tiered rate structure for Standard/Elite/Super Elite starts at 675+ (auto-enhanced). As of last month, the rate was 3.9% for anyone in that range or higher. I can't offer any real experience in whether or not you'd get approved, but I'd wager that with $8k down, you'd have a fairly decent shot.

 

My wife and I went thru the process last month of testing the waters on a CPO 2007 328i. Rate would have been between 5.9 and 6.9%. Wasn't a good enough deal for us due to negative equity we brought into the deal, and ultimately, I think we made a good choice to pass on that particular offer.

 

One oddity we discovered during that process with BMWFS: When they pulled our scores from Experian, I got a 622 auto-enhanced. Then they pulled my wife's report and the F&I guy stated "it was not much better" than mine. Fast forward to last Friday at the Honda dealership where we replaced a 2008 Civic EX-L with a 2010 Civic EX-L, my score was 679, and wife's was 722 when pulled thru EQ/TU.

 

Not saying that the BMW dealer was pulling any shenanigans, and I can almost understand a 57-point difference; but an almost 100 point difference, with no major changes whatsoever in my wife's report - that just seems odd.

 

 

Even in the auto enhanced scoring models, there are several different kinds. I personally currently on Experian V2, when V3 has been available for a number of years.

 

So I dont think BMW FS would have been trying to pull shenaginans. I'm sure they wanted to sell a vehicle to you.

[Anish]

Is the 335xi you are looking for a CPO from a BMW dealership? Their tiered rate structure for Standard/Elite/Super Elite starts at 675+ (auto-enhanced). As of last month, the rate was 3.9% for anyone in that range or higher. I can't offer any real experience in whether or not you'd get approved, but I'd wager that with $8k down, you'd have a fairly decent shot.

 

My wife and I went thru the process last month of testing the waters on a CPO 2007 328i. Rate would have been between 5.9 and 6.9%. Wasn't a good enough deal for us due to negative equity we brought into the deal, and ultimately, I think we made a good choice to pass on that particular offer.

 

One oddity we discovered during that process with BMWFS: When they pulled our scores from Experian, I got a 622 auto-enhanced. Then they pulled my wife's report and the F&I guy stated "it was not much better" than mine. Fast forward to last Friday at the Honda dealership where we replaced a 2008 Civic EX-L with a 2010 Civic EX-L, my score was 679, and wife's was 722 when pulled thru EQ/TU.

 

Not saying that the BMW dealer was pulling any shenanigans, and I can almost understand a 57-point difference; but an almost 100 point difference, with no major changes whatsoever in my wife's report - that just seems odd.

 

 

Even in the auto enhanced scoring models, there are several different kinds. I personally currently on Experian V2, when V3 has been available for a number of years.

 

So I dont think BMW FS would have been trying to pull shenaginans. I'm sure they wanted to sell a vehicle to you.

 

I won't be putting $8k down for this, not more than $2.5k, Marv do you think with my app, this $32k loan is possible? Thanks.

[MarvBear]

What is the highest amount of installment credit you have reporting to file, (not counting student loans.) on a per trade line basis? Please describe.

[MarvBear]

Are you a college graduate?

[Anish]

Are you a college graduate?

 

I haven't had a credit line increase in my credit cards for a while, and my highest line of credit is not much, $1300. I have a masters degree but I graduated in May 2009.

[MarvBear]

Credit cards are revolving credit. '

 

I'm interested in INSTALLMENT CREDIT.

 

What is the highest line of installment credit you have reporting to file, (not counting student loans)? Please describe.

[Anish]

Credit cards are revolving credit. '

 

I'm interested in INSTALLMENT CREDIT.

 

What is the highest line of installment credit you have reporting to file, (not counting student loans)? Please describe.

 

I'm sorry dint know, I don't have any. 4 Credit cards is all that I have.

Edited August 19, 2010 by Anish

[MarvBear]

with no installment credit of substance, I believe you would most likely be asked for a qualified co-applicant.