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      09-27-2012, 01:09 AM   #1
fongpi
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PenFed only gave me $30K for a loan, advice on getting the rest?

As you may know, PenFed has super low rates right now. I applied a few days ago for a used car, and they only approved me for $30K! I have a credit score over 720 but according to them, it's because of "past or present" delinquency. Since two banks aren't willing or able to split one title, does anyone have any suggestion on where I can get another $20K? I've done so much research that I would hate to abandon the current deal I've found!
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      09-27-2012, 01:13 AM   #2
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Just take the rate from BMW financial and bite the interest for a while and refinance..
Not much difference, you can get 4% easy with 720 score.
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      09-27-2012, 01:37 AM   #3
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Try western fed credit union. 1.99%
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      09-27-2012, 01:43 AM   #4
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Quote:
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Try western fed credit union. 1.99%
^^ This.
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      09-27-2012, 02:23 AM   #5
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What about a BRZ instead?
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      09-27-2012, 02:58 AM   #6
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Put your $30k towards drugs and turn it into $300k.
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      09-27-2012, 05:55 AM   #7
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Join a credit union as a few others have suggested. I had a 2.9% rate through a bank and just joined a local credit union and refinanced at 1.9%.
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      09-27-2012, 06:01 AM   #8
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Usaa 1.20% Apr
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      09-27-2012, 08:43 AM   #9
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Usaa 1.20% Apr
Wow! I was super-pleased with the 3% deal I got (buying used).
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      09-27-2012, 08:43 AM   #10
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Strait cash homie.
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      09-27-2012, 08:47 AM   #11
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Sounds like you should clear up your credit issues before worrying about buying a car. It appears that no matter what financial institution you try to use, they will likely all give you the same answer.
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      09-27-2012, 08:49 AM   #12
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Strait cash homie.
This.

Quote:
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Usaa 1.20% Apr
That's the rate if you use their car-buying service.

Plus the OP has questionable credit, so he's not going to get the lowest rates that USAA is offering for their short (36mo) loans.
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      09-27-2012, 09:28 AM   #13
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is the deliquency past or present? if it is present, fix it. bottom line (if the deliquency is true) is that you created a problem that will simply cost you higher interest for a while. good credit with no uh-ohs is worth a lot.

i went the "straight cash homie" route. so much easier. buy what you can afford.
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      09-27-2012, 10:08 AM   #14
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As others have stated... it sounds like your credit history is questionable & perhaps that's a sign that the M3 is out of your league at the moment.

Focus on re-building your credit history or if there is an error get that cleared up first before you apply for another loan. I believe everytime a lender does a credit lookup it has a negative impact on your overall score... it shows that you're constantly looking for credit and it sets off warning bells for other lenders.

Bottom line, get the issues sorted out with your credit history before you apply for another loan.
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      09-27-2012, 11:12 AM   #15
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can you afford the car? sorry, someone had to ask it....
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      09-27-2012, 11:18 AM   #16
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Quote:
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I believe everytime a lender does a credit lookup it has a negative impact on your overall score... it shows that you're constantly looking for credit and it sets off warning bells for other lenders.

.
there are "hard pulls" and "soft pulls". Hard pulls are when you apply for credit limit increase or a house or car loan. Soft pulls are when lenders look at your history (unsolicited) to spam you with loan offers, or for consumer services that require contracts or longer term committments (apartment, cell phone, internet, Macy's store card)


Hard pulls effect your credit for a temporary amount of time depending on how many pulls are made in a certain time frame. Basically, you don't want to go to 10 dealers and ask for a $30k loan each and run the credit check each time within a week. But this resets over time.

soft pulls have no effect on credit.


OP sounds like even if you're at 720, you need to check all 3 major credit provider records to see if there are mistaken items that need to be clear. Also a 720 credit score doesn't mean you "make a lot of money", so to speak. 720 is good, but not steller. If they feel like you barely make say 70k a year, plus your rent/mortgage committments, plus past history, why would they loan you 60k+ today at <2%? I wouldn't, you're not even "liquid" in this case.

Last edited by mdosu; 09-27-2012 at 11:24 AM.
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      09-27-2012, 11:22 AM   #17
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Don't buy the car. Wait until you have the $$ saved as opposed to getting it via credit.

Also, not sure if true but I heard through the grapevine that the more places you go ask for loans etc, the more your credit score is affected (not in a good way) and the 'inquiries' won't leave your file for 36-60 months.
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      09-27-2012, 11:23 AM   #18
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Quote:
Originally Posted by M Pulse View Post
As others have stated... it sounds like your credit history is questionable & perhaps that's a sign that the M3 is out of your league at the moment.

Focus on re-building your credit history or if there is an error get that cleared up first before you apply for another loan. I believe everytime a lender does a credit lookup it has a negative impact on your overall score... it shows that you're constantly looking for credit and it sets off warning bells for other lenders.

Bottom line, get the issues sorted out with your credit history before you apply for another loan.
I wouldn't say his credit history is questionable. 720 is a good score. They approved him, so it could be other issues such as previous loan amounts or credit obligations. If your previous high loan was 20-30k, they're more hesitant to approve for 60k, since that's twice the amount you've ever been approved for. Some banks are more conservative about that then others.
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      09-27-2012, 11:46 AM   #19
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Quote:
Originally Posted by fongpi
As you may know, PenFed has super low rates right now. I applied a few days ago for a used car, and they only approved me for $30K! I have a credit score over 720 but according to them, it's because of "past or present" delinquency. Since two banks aren't willing or able to split one title, does anyone have any suggestion on where I can get another $20K? I've done so much research that I would hate to abandon the current deal I've found!
It’s odd that they are telling you “past or present delinquencies” are preventing you from be qualified for more money. How much money you are qualified for is typically a function of your debt-to-income ratio. Any past credit difficulties have already been factored in by your credit score, and unless you have a recent bankruptcy, or repo of some sort the analysis is usually left to the credit bureaus. Regarding the scenario you suggested, I doubt any institution is going to give you “the other $20k” as it were. You will need to find another lender who will give you the full amount which may or may not be difficult. You may have to pay a higher rate to ultimately get what you want.

Regarding the credit inquiries, there are indeed soft and hard pulls. However the credit bureaus give you a 30 day “shopping period” in which you can have up to 10 inquiries for the same purpose and they will all be looked at as one inquiry. You typically are not punished for doing your due diligence as a consumer.

If it were me I would simply get the car you want and refinance it later
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      09-27-2012, 01:29 PM   #20
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I think it's funny that 3-5% interest rates are like a sin these days.
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      09-27-2012, 03:03 PM   #21
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What's your monthly income/expenses? They may have felt you couldn't afford larger payment.
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      09-27-2012, 03:41 PM   #22
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$30K with some cash can get you a nice new 3 Series non-m.
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