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Full Version: Approval and college grad programs...
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wouql
My app details follow...what I'm also hoping is anyone can share their experience with the college grad programs many dealers seem to offer. It's very difficult to find any information from anyone who's used one; searching this board for 'college' came up with more information than Google.

(Some background: I'm 21, graduating in May (6 months), and have a job lined up starting then for $58k/$4800 gross/month. I've been working for this company part-time for $900/month since July; this income will continue until I become full-time in May.)

The college grad programs have different requirements, but they're pretty much all variations on:
* graduate in ~6 months
* employment starting within 90-120 days of loan approval
* no credit to excellent-average credit (anything but bad credit)

They have various benefits (additional rebates, flexible/no down payments) but the two I'm interested in are:
* deferring payment until employment: Getting a car months before my job starts is very very appealing (I've never had any sort of vehicle)
* easier approval: (from what little I've heard, with little credit, getting a loan through a college grad program is easier than financing through a credit union or bank)

I'm really not clear on how different the program would be from another source: Will the grad programs give me an absolutely outrageous rate? Would a credit union even consider allowing me to defer payments for a while? Or consider approving someone who hasn't started their job yet? Would the grad program be 100x more likely to approve me than a bank?

If a bank or credit union would let me defer payment for a few months and approve my loan for a similar rate, I'd really have no need for the college grad program. Otherwise I'd go with the grad program.

Thanks for any advice

Additional information: Although I've been on file since I got student loans in 2002 (about $29k total - curiously, Equifax/Experian/TransUnion have me down for $12k/$21k/$29k respectively), they're all deferred; so while they're in good standing, they don't have any payment history either. In addition, the sole revolving account I have is a credit card with a $1,000 limit that has only been open 6 months.

wouql
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Your Age: 21

Your Equifax Credit Score: 730
Your Experian Credit Score: 730
Your TransUnion Credit Score: 726

How long have you been on file with the CRA s? 3.5 years

Previous Automotive Credit History:
Do you have an open auto loan? No
Will this loan be a trade-in? No
Number of late pays within the last 12 months? n/a
Number of late pays within the last 13-24 months? n/a
Current open auto loan is financed with? n/a
Current open auto loan payment is? n/a
Estimated amount you may be upside down in this vehicle? n/a
Rate this open auto loan from 1-10 (10=BEST) n/a

Revolving Credit History:
Total number of revolving accounts? 1
Total percent utilization overall? 0% (paid off every month)

Your Information:
How long at residence? 6 months
Rent/Homeowner/Live with relative? Rent
How long at current job? 6 months, but my job doesn't seem to show on any credit reports
Total Provable MONTHLY GROSS INCOME? right now, $900; upon graduation, $4800
Provable via computerized paystub or what method? Pay stubs for now; Offer letter stating income that starts in May

Your Downpayment in CASH: $3000
Rebates not considered; Trade Equity not considered: CASH ONLY PLEASE INPUT.

Does any credit repository contain any Public Record?: No

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

New or Used Vehicle you are considering; please describe: New, financing $25,000

Your creditworthiness on a scale of 1-10 with 10 being the best:
OVERALL credit: 7 (good but very new)
Installment Credit History: 0 (none)
Revolving Credit History: 8 (always on time, but very new)
MarvBear
I have never heard of a college graduate program that would allow one to defer the payments more than 30-45 days from the time of original signing.

The guidelines are rather strict and the lenders with which I am familiar do not allow for deviations.

Most likely should one meet the approval criteria, would be a better rate than would otherwise qualify for on one's own. Usually they are "B" tier candidates.
MarvBear
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