Capitol One Preapproval Letters

[ace300s]

I've been getting Preapproval letters from Capitol One for loans up to $30,000. The letter says take it to dealer with required income info.

Here's my question...Is it best going through the approval process online first? What type of interest rate can I expect? I'm thinking about getting a car around the end of the year. Looking for advice.

My History...

Discharged BK7 06/12. Since have a Capitol One Credit Card with $2000 limit and a Merrick with $1500 limit. No balance on them.

My income is very good and my faco scores on CK and C.com are in the 690's.

[ValleYum]

With your scores some dealers offers might could beat Cap 1 (and their blank check product).

We qualified for Tier 1 financing (0%! and $0 down) with Toyota with auto enhanced scores of ~720 and a few months further out from our BK than you are. Toyota seems to be very BK friendly.

That said, going ahead with getting a finite approval from Cap 1 prior to car shopping may give you bargaining power. Cap 1 interest rates seem to vary with the term of their loan and your down payment (as do most dealers).

Good luck and happy hunting! Let us know how you progress.

[ace300s]

With your scores some dealers offers might could beat Cap 1 (and their blank check product).

We qualified for Tier 1 financing (0%! and $0 down) with Toyota with auto enhanced scores of ~720 and a few months further out from our BK than you are. Toyota seems to be very BK friendly.

That said, going ahead with getting a finite approval from Cap 1 prior to car shopping may give you bargaining power. Cap 1 interest rates seem to vary with the term of their loan and your down payment (as do most dealers).

Good luck and happy hunting! Let us know how you progress.

Thank you...Good information..

[IBroke]

I receive these letters from Cap.1 on a regular basis. In my case, I find them very funny. They say I'm pre-approved and on the back, you can see the conditions that apply - one of them is that you mustn't have had a repo with Cap.1 in the past. I, however, had one. So why on earth am I 'pre-approved" in the first place? Can't they access their own records?

[jetsfan2010]

One bit of advice - whatever rate they give you - you can call and negotiate to get it lowered. I have used the blank check for my last 2 purchases, and this last time I called(spoke to 2 managers) but got my rate down 4 points from what the original CSR rep told me.

[katztoo]

We got approved for Cap. One 6 months after discharge. 2.94% on a new car, 72 months, no down payment. Auto credit score came back at 601. They will finance 110% of invoice price, we got the car at 20,000 (500 below invoice) and the payment will be $303/month on a 2013 civic ex. No down payment.

[iswmle]

My SO applied for one when he was fresh out of undergrad and needing a car. His credit consisted of one Cap1 CC that he had since he was 18 and always PIF, and one USAA card which he had just received. He has never paid a dime of interest in his life, much less incurred any collections, late fees, etc. So basically his credit at the time was spotless, but new. We knew the note would be paid off almost immediately, I had just suggested it to diversify his credit profile. Income was small, around 20k. He was declined, and he ended up taking money he had in savings and money gifted from family members to buy a car for 5k. Fast forward 4 years later, and on to grad school. I got a better paying job and he got a fellowship that increased his income. He has added 3 new credit cards to his profile, one being a Cap1 Visa. He uses one credit card (Cap1) and pays in full. Now Cap1 Auto Financing wants to make babies with him.

For me, I have faithfully used a Cap1 CC pretty much since they let me back into their fold. Have been diligent about paying in full. I think I had their card for about a year before they started sending me the auto financing. Fortunately, we have not had to take advantage of it. My car is very reliable, and that 5k car my fiance bought has had no issues. I feel blessed. Anything going wrong with a vehicle is enough to make me bonkers!

[lovelylisa84]

One bit of advice - whatever rate they give you - you can call and negotiate to get it lowered. I have used the blank check for my last 2 purchases, and this last time I called(spoke to 2 managers) but got my rate down 4 points from what the original CSR rep told me.

How does one negotiate a lower rate?

[LadyInTheRed]

How does one negotiate a lower rate?

Just call and tell them that you may just keep your old car if you have to pay that rate and ask if they can offer a lower one.

[ccmisery]

I'll never understand creditors, when your in debt and current on your payments, they often will not lower your APR, some do for a temporary time (hardship) but most say they won't. Then meanwhile your barely keeping your head above the water and go under, the letters come, late payments and the phone rings off the hook, file bk and then 6 months after discharge they send you offers for credit and give you low APR??

What is wrong with this picture?