Getting denied for car loan

Submitted by Anonymous (not verified) on Wed, 05/21/2008 - 20:37
Forums
Debt management

Ok, here's the scenario. I currently owe about ~6,600 on my SUV. The plan is to sell it to A) Lower my monthly payment B) get something with better mileage.

I want to just go to a dealer, have them take my car on trade (aka pay it off) and get something else.

I applied for the Capital One Auto Loan (think Eloan) for $10,000 and was denied.

I have other large CC debt, so I was figuring the debt-to-income is why I did not get the loan. However, they obviously do not take into account that the current monthly payment would theoretically be gone (and the new one will be less $). How can I get around this?

Thanks!

sdchargers_63

Can you re-finance your car loan? Where do you have your loan now? If you want something with better mileage, you MAY have to wait until you make a few more payments and see what you can do about trading your car in, at the same time using the same bank/fianance company you are using now. Getting a car/house loan is SOO much harder now a days. I'm just suggestioning to use the SAME finance company you're using now, because you ALREADY have 'credit' with them, paying on the vehicle you have now. Hope this makes sense.

Thu, 05/22/2008 - 02:21 Permalink
sdchargers_63

..wanted to add to my earlier post. Yep..I DO think it's harder to get a loan, for ANYTHING now-a-days. But.......I would ALSO think if you ALREADY have the 'collateral' ( the vehicle/house..), the bank/finance company would know you would NOT want to lose your vehicle/house, SOO.....you WOULD pay for it. Does this make sense?

Sun, 06/15/2008 - 14:10 Permalink
goodnatured

yes, but even if you have collateral and your credit is bad you still will end up with a terrible rate.

Thu, 06/19/2008 - 01:20 Permalink
Anonymous (not verified)

Actually, creditors base their lending decisions on credit report as the report shows the credit history of the individual and his willingness and ability to repay the debt. collateral only acts as a security which ensures secured credit and hence a low interest rate only when your credit scores are good. Else, even with a collateral you will end up with high interest rate if you do not have a good credit score.

Thu, 06/19/2008 - 10:50 Permalink