Pre-Approved Auto Loan Means Approved?
Posted 18 July 2012 - 08:43 PM
Posted 18 July 2012 - 09:16 PM
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Posted 19 July 2012 - 07:55 AM
Again, personal experience. I was just approved thru GM for 11% on a loan amount of $9151. Vehicle was $9995 (2009 Chevy HHR with 2 years factory warranty left) and I paid $2000 down. Many negatives on my credit, including a handful of charged off credit cards from 2009 & 2 auto loans that were charged off in early 2010. This was open loan #2 (joint with hubby, who has lower income but credit the same condition as mine) and much better than I did last year financing with Santander for a car for me. (That one was $15k loan, $750 down, APR 2X as high. But I was in a situation where I had to get into SOMETHING and that was better than not driving/losing income.)
Posted 19 July 2012 - 03:56 PM
Hi All! Im a newbie to the boards so Im still learning. I've only been on this credit improvement journey for a short period of time because Im in need of a new car after totaling mine a few weeks ago. Didn't realize my score had plummeted as much as it did until I tried to get approved for a auto loan via my bank (Chase) and was denied. While I was reading through my junk mail, I discovered Capital One, who recently bought HSBC which I've had a card for years has been sending me pre-approved car loan offers for their preferred dealerships for the past few months. I have two accounts in collections totaling under $300 and my score is mid-500's right now. My lowest being 540 and my highest being 585. Does pre-approved mean your one foot in the door?? Also is it possible to get approved with accounts currently in collections? I'd appreciate any response or input TIA!
"Pre-Approved" is a fairly loosely used term, and it would depend on who is telling you that you are pre-approved. If it is from an auto finance company (Capital One etc) then it probably means that based on information available, you have the credit criteria to be approved. If it was a piece of mail you received in the mail from a car dealership, its only part of a promotion and doesn't mean that you are approved for financing (since an approval can only come with a application to a bank, which you would have to sign in person)
I wouldn't be discouraged if Chase turned you down. Chase is mainly a Prime lender (I have them, and they require a minimum FICO of 680).
As far as the collections are concerned, really not a factor but do depend on what the collections are for (ie. medical, credit cards, judgements) At the end of the day, I try to get my customers car loans, I don't allow credit analysts to sit and talk about medical collections (our healthcare system is jacked up) and sometimes insurance companies forget to pay doctors.
- Have you had an auto loan before?
Mid 500's means you should be able to get an auto loan, I would suggest checking out Capital One's "blank check" program on their website. They have full spectrum lending (Highest FICOS down to the minimums)
I'll leave you with this. Equity usually makes the loan approval process a little easier, so if you can put any money down, it will definitely help the cause. DEFINITELY don't allow your loan application to be shotgunned (sent to every bank a dealership has) to different banks, this will drop your score. Let me know if you have any more questions, and best of luck!
Posted 21 July 2012 - 07:13 PM
Edited by toughcookie, 21 July 2012 - 07:18 PM.
Posted 25 July 2012 - 07:22 PM
Posted 26 July 2012 - 02:14 PM
I convert almost all customers that come in with the Blank Check to better financing than what they walked in with. Not only that, but if I submit the loan structure to Cap 1, I usually end up getting a better approval WITH Cap 1 than the customer had with Cap 1.
Posted 26 July 2012 - 05:09 PM
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