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Denied CapitolOne auto loan, auto financing options?


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Hello,

I was recently declined financing through Capital One's online auto loan program, I had requested $7500 for a used car purchase. I thought I might be OK, I have a 627 EQ score, a couple charge offs from the last two years (both paid off) and low utilization on my credit cards. I don't know the reason they declined me yet, but I was really interested in getting another car. I make around $2700/mo. or more and my wife makes the same or more. We pay out about $800/mo. in rent (that's all capitol one asked for) but I just did an individual app., not a joint.

Does anyone know my chances of getting financing at a car lot? I was really interested in a lesser amount, more in establishing more credit history. I've actually about $2K saved in cash, I was hoping to finalize a purchase in the next week or two, but don't want to waste my time at a dealership if they're just gonna deny me or rake me over the coals with financing. I haven't tried my bank yet, but I don't want to waste my time if my credit history will just lead to another denial. Another goal is to buy a house by this time next year, so I'd like to have an auto loan positive TL to show on my report. Any thoughts?

Thanks!

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You shouldnt have any problems getting financed at the dealership, but try WFS financial and your local credit union first. My credit is worse than yours and I was unable to get financed by the online websites like capital one, WFS, etc.....but got financed through them through the dealership.

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I went to the dealer, knowing I would be paying a high interest rate.

I got approved for a vehicle with Americredit at 18%. A week later, the dealer called me. They could give me the vehicle I actually went in looking for at "such a deal"! I told them I was not paying another penny. Come on in! Dealer was doing this to make their # of car sales look good in some contest they were in with other dealers. I really didn't care, as long as it wasn't costing me money.

So, I went in and turned in my new vehicle for another new vehicle. I was an "informed consumer" at that point and had the upper hand. So, I haggled a little. They got me a Capital One car loan at 13%. Not that great - but better than Americredit. My payment decreased - and I got the vehicle I had actually wanted in the first place!

On top of that, I had a paid off car loan - which increased my credit score!

I had burned Cap1 previously in bk with 2 credit cards and they will not give me a credit card - but they approved me for a $20,000 auto loan. Go figure!

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Three years ago my wife's car basically died and we needed to get a new car for her in a hurry. We ended up with a 18% rate on a used car.. A year later when we went in for a car for me the initial rate was 16%, but the dealership was able to get it down to 11%. Make sure you bargain, and always go mid to late month to the dealership. It's probably been a little slow at the dealerships for car sales since gas is still so high and they all want to make their monthly quotas..

If nothing else make sure you visit Edmunds and read their advice at http://www.edmunds.com/advice/ The 10 Steps and Confessions of a salesman have great information on getting a better rate and price..

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What is the benefit of a credit union as opposed to a bank. Just curious.:confused:

Credit unions are non-profit and owned by the members themselves, whereas banks answer to their corporate boards and shareholders who demand a return on their money. Therefore, credit unions usually are more lenient with approvals, more forgiving, have lower fees, and have lower rates.

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Credit unions are non-profit and owned by the members themselves, whereas banks answer to their corporate boards and shareholders who demand a return on their money. Therefore, credit unions usually are more lenient with approvals, more forgiving, have lower fees, and have lower rates.

i have the worse luck with my credit union that i've been with for over 2years... i have a TU credit score(they only check TU) above 700 and they give me a hard time about getting a credit card only wanting to extend to me $1500 dollars in credit or if i want a personal loan for $5000 they want me to close my other credit accounts etc, plus i would have to fax in copies of my pay stub(i have direct deposit to my credit union account!) a copy of the bills from my other creditors with a signed agreement to cancel the accounts, a personal reference... i've never had a negative balance with them and never had a bounced check... i had a line of credit with them for 2years and was never late and i never went over 50% on that line and i have direct deposit... i went to a major national bank that i do not have an account with and they approved me me for a personal unsecured loan for way more than the credit union offered and i didnt have to provide documentation whatsoever...

credit unions suck, well at least mine does and its actually a national credit union... :roll:

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All Credit Unions are different. I know of a Credit Union here in my town that will refuse a 700 beacon trading in an open auto loan on another and they tell them NO!! So I send them down the road to another Credit Union who is way more flexible and eager to help out.

Once you are approved with your credit union or once you explain to the car salesman that you will be financing the vehicle thru your CU the price generally drops because a credit union absolutely will not allow overpricing to a customer they are financing...unlike Cap One, HSBC,Americredit,WellsFargo etc. Most car lots know this about a CU and unless they are just stupid the price falls right in line with NADA or KBB.

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