This is an auto loan applications from LA that was submitted by an applicant who wants to buy a new Chevrolet Volt and wants to do a trade in with his 2006 Toyota Prius. He has indicated that he has a $5000 dollar down payment to use. With his trade in value of close to $16,000 and his cash down, he has a total of $21,000.So our applicant wants to get a $20,000 loan to cover the difference for the new Chev Volt. His credit rating is rather bad because of some missed payments on his Discover Card, and he has had some trouble with his Visa Cards in the past as well.
He blames on relationships and bad luck, and that is fine, but dealerships, banks, lenders, Equifax, TransUnion, and Experian don’t care at all about the reasons for not making payments on time and in full – it’s completely impersonal. It’s just a mathematical record of your payments to creditors that matters in the long run. So never take it personally when you are declined on any kind of loan.
This new car loan was ultimately approved, even with his bad credit, because he has held a solid job for over 5 years with the same employer and because the lender used the new car as security as well. The down payment factored in as well. Unfortunately, due to the applicant’s poor credit rating, his APR on the loan was high.
