Auto Loan Denial from US Bank

[prgreg]

I am 6 1/2 years post Chap 7 (filed June, 2003), and have a credit score of approx 730 (Equifax). My other two scores are very close to that number also. I have a solid job history, with a good income, and an extremely low income/debt ratio.

I applied for an auto loan with US Bank last month, and was turned down, despite me having a 7 year blemish free history with the bank, and having not included them in any way in my Chap. 7. I even have a small Line of Credit with them for overdraft purposes.

The personal banker acknowledged my high credit score, my excellent employment history, and my low income/debt ratio, however he informed me that the underwriters told him they will NOT approve an auto loan until 7 years after my Chap. 7 filing, when they said it would drop off. I informed him that no, in actuality, a chap 7 remains on the credit report for 10 years.

Having read another post stating US Bank approves auto loans with 2 years of positive credit history after a bankruptcy, I wanted to post my experience. I did not apply for any other financing, as I do not wish multiple credit inquiries to bring my score down without having a reasonable expectation that I would get approval.

[jcregs28]

Mutiple auto inquires within a 14 day period will be recognized as ONE inquiry in regards to your fico score.

Don't worry about US Bank...find a local credit union, they will always match or give you a better APR interest rate (many times even if you're not a member). There are so many banks and credit unions willing to business with you with your scores and credit history. Don't be discouraged, keep at it!

[LimpDisc]

Try Capital One blank check

[prgreg]

Try Capital One blank check

Ummm---at the rates Capital One offers, no way. At rates between 9 and 13%, and with my credit score being over 725, I would rather keep driving my junker around until I find a loan at prevailing rates (about 5%).

[jdcat]

We bought a new car two years after discharge with Capital One blank check. Our rate was decent...8%. AND our credit scores were in the 600 range.

[gophermn]

I got a auto loan from Americredit and absolutely no complaints. Got my loan 1yr out of CH7 with a credit rating around 600.

[StartingOver08]

Try a local bank or CU. Your scores and debt ratio seem to be excellent. Check with the loan officer first before he/she pulls your credit as to the underwriting criteria so you don't waste an inquiry.

The fact that US Bank turned you down may or may not have anything to do with your specifically. Sometimes lenders get in and out of various lending sectors and naturally they are not going to say: "Hey, we are not doing any auto loans for the next 60 days" because the risk dept doesn't necessarily disclose it to the loan dept. This is normally referred to as a 'review of credit guidelines'. So, don't take it personally because sometimes it has nothing to do with the borrower!

[bkyoungin]

I am 6 1/2 years post Chap 7 (filed June, 2003), and have a credit score of approx 730 (Equifax). My other two scores are very close to that number also. I have a solid job history, with a good income, and an extremely low income/debt ratio.

I applied for an auto loan with US Bank last month, and was turned down, despite me having a 7 year blemish free history with the bank, and having not included them in any way in my Chap. 7. I even have a small Line of Credit with them for overdraft purposes.

The personal banker acknowledged my high credit score, my excellent employment history, and my low income/debt ratio, however he informed me that the underwriters told him they will NOT approve an auto loan until 7 years after my Chap. 7 filing, when they said it would drop off. I informed him that no, in actuality, a chap 7 remains on the credit report for 10 years.

Having read another post stating US Bank approves auto loans with 2 years of positive credit history after a bankruptcy, I wanted to post my experience. I did not apply for any other financing, as I do not wish multiple credit inquiries to bring my score down without having a reasonable expectation that I would get approval.

My experience is that all these bigger banks are total and complete blithering idiots. Talk to your local credit union as they maybe able to help you out a lot more.... if they do, give them your business and close your US bank account. I know for some people it maybe inconvenient but it puts a statement out to the them in some form or another.

My girlfriend did it to wells fargo, she had a 725 Experian score and 3 lines of credit, cap one (750) wells fargo (1250) and a hsbc (325) they denied her request for a used auto even though she had perfect credit no lates ever. Her credit card utilization was less than 10% of total debt didn't matter what she wanted the loan officer said "we will not approve you for any auto or personal loan without a co-signer PERIOD." total d-bag
She went to navy fed, they gave her a car loan 60mo @ 5.75 percent on a used auto, and a 2000 credit card @ 11%. She closed wells fargo and told them to die in a fire.

Bank of America would not even approve me for a SECURED card post-BK..... A SECURED CARD. I am just waiting until my 1year anniversary with them to collect the 300 they owe me for promotions then I will close them, I don't care about the hassle I will not let a bank dick me over. WAY to much competition out there to let them do it and get away with it.

I have a local credit union now, approved me for a 500$ secured which turns unsecured after 12months. Rate is 12% and they will also double my limit, and the loan officer said to me over the phone that members that have a history with them have a good chance of an auto loan through them as long as my income can support it.

So what people say is true.... don't buy into the ads you see in magazines and paper, credit unions blow banks outta the water when it comes to credit and loans right now.

[aces67]

Try Capital One Or Chase instead.