Understanding automotive credit eludes me...

[therookieid]

I've been lurking on the forums for a little while now and thanks to the wealth of knowledge available here, I've been able to re-establish positive credit. I think I've gotten a decent grasp on basic credit issues as it relates to credit cards and mortgages, but I cannot for the life of me understand automotive financing. It's the last frontier and I'm unable to conquer it. Here's the story...

 

One year ago I filed Chapter 7. Since then I've been able to remove most baddies leaving only 2 paid state tax liens from 2007-08 and one IIB deposit account (currently showing $0 - discharge balance was $200). I have 5 store cards, 3 bank cards, au on 3 bank card accounts, and one closed/ paid/ never late auto loan reporting. My highest limit is $14k. Inquiries are TU 4, EX 2, and EQ 18 (left over from a little report poisoning from a previous creditor). My utilization is 35%. My debt-to-income ratio is 21%. My AAOA is 2.85 years. My FICOs average 655. My annual income is over 50k.

 

I have opened credit union and bank accounts based on who they pull and what credit products they offer and applied accordingly. In other words, more sniping, less shotgunning. All are in good standing with no overdrafts, nsf's, etc. In all honesty, none of them have a lot of money in them either, but they all see regular activity. I have been declined on vehicle apps six times. The first three I chose specific vehicles. Thinking that the vehicle may have been the issue, on the last three I did not app with a specific vehicle - same result. None of the loan apps have been over 19,000 with a couple as low as 7500. Now, I'm sure, just from past buying experience, that I can walk into a dealership and get financing. But, the purpose of improving credit is to improve your bargaining position, at least in my mind.

 

I haven't really been denied for the basics like too many inquiries, too much credit, too many new accounts, escalating debt, etc. They have mentioned insufficient credit history (I have positive tradelines dating back to 2004) and past delinquency.

 

When searching the forums, I see the approvals/ denials are all over the place from 525 FICO approvals to 725 FICO denials. I know that each case is unique, but others must be just as confused as I am. Anyone have any insight as to where I may be going wrong?

 

Also, I purposely posted this in the general credit forum as opposed to automotive financing thinking that at some point in our journey we all pass this way - reaching the point where we're ready to finance another vehicle.

[cv91915]

Bump

[BobWang]

Marv would know more about this,

 

but my guess is that your auto-enhanced FICO

 

is being negatively impacted more than your general FICO.

[therookieid]

Thanks for the replies.

 

I'm not sure how close SmartCredit's auto score is to FICO's auto-enhanced score but my SC auto score is considerably lower at 583. However, when I receive the adverse action letters, they always list scores that match my FICOs in the 640 - 680 range.

[morozov50]

Try joining DCU and apping for an auto loan with them. Very low rates and they are very generous with the limits.

[boomhower1820]

Are you applying or going to a dealership? New car dealerships have access to products you do not and can get you approved where you yourself cannot.

 

DCU is another good option. One of my car loans is through them.

 

 

Sent from my iPhone 5 using Tapatalk

Edited November 7, 2013 by boomhower1820

[SpartacusOwnz]

What is DCU if I may ask?

[cv91915]

What is DCU if I may ask?

 

Do you have access to the Google machine? It's the first hit.

[therookieid]

DCU was one of my denials. It's also where my downpayment for the vehicle has been parked for a few months.

 

And the reason that I haven't apped a dealership was to walk, in financing in hand, in a better bargaining position. But...it looks like I may have to suck it up and take some of this 13% dealer financing.

[breeze]

You are likely to get your most favorable rate from a dealer with a good reputation who does a lot of business. There is more to auto financing than you know, on that point you're dead on.

 

I can move this to the automotive forum if you like (let me know), or just fill out Marv's little fake but accurate auto app. and he'll let you know whether you could get approved on reasonable terms, and you could ask some questions there. He's not going to try sell you anything.

[breeze]

Also, if the report poisoning was after the bankruptcy stay was issued, you probably have a pretty decent lawsuit, not to mention a federal judge who will be pretty angry with that creditor. That's contempt of court.

[road2freedom]

You could also try the CapOne program. They seem to be pretty lenient and were quick to approve me following my BK (didn't go with them for other reasons).

 

 

I agree with your tactic - it's much better if you can go in approved and also knowing a reasonable price to pay. Hopefully something will pan out. Worst case, you take the higher rate for 6 months and refi. CUs seem to like to see 6 months or more on auto loans following a BK (even if you didn't IIB an auto loan), at least that was the sweet spot for NFCU. DCU preapproved me when I joined last year but that was closer to 3 years post BK.

[therookieid]

You are likely to get your most favorable rate from a dealer with a good reputation who does a lot of business. There is more to auto financing than you know, on that point you're dead on.

 

 

Agreed, I'm still lost.

 

Also, if the report poisoning was after the bankruptcy stay was issued, you probably have a pretty decent lawsuit, not to mention a federal judge who will be pretty angry with that creditor. That's contempt of court.

The poisoning stopped at the bankruptcy filing and, unfortunately, I've been unable to remove the inqs. The permissable purpose was that they were "looking for me" although they were in contact with me by phone, fax, and mail at work and home on a full scale harassment basis.

 

You could also try the CapOne program. They seem to be pretty lenient and were quick to approve me following my BK (didn't go with them for other reasons).

 

CapOne was another one of my denials. I've had a card with them for 8 months and always pay early.

 

Oddly, my SC auto score jumped up today from 583 to 643 with no new changes. Not sure what makes today so magical?!?

[road2freedom]

 

Not sure what makes today so magical?!?

 

 

It is Friday.