An auto loan question, people who know loans or is a loan officer, please answer.?

Question by smiley: An auto loan question, people who know loans or is a loan officer, please answer.?
Ok, so I applied for a used auto loan first time around and got 11k at 5.69%. After a review, I got the loan. I asked for 15, got 11. I am 23, make more than enough to cover the payments and all my bills, and my credit score is in the 700s.

So here’s why I’m confused. The loan expired so I went in and reapplied 1 month after expiration. I expected the interest rate to increase slightly. I got denied the second time around, then the banker called a loan officer b/c she thought it was weird and my loan was approved at 13k at 8.99%! So the banker couldn’t know less about interest rates and couldn’t find the rate I originally got the first time and said it was always 8.99%. I know what I heard and it wasn’t 8.99% the first time, but never got official docs sent to me b/c they had reviewed it first. Not understanding this, the supervisor at the bank couldn’t know less and repeated herself when I asked why my old info was missing and why my rate changed so much? Can anyone explain this?
I did not run my credit for any other loans or pay anything late. I haven’t opened any accounts except the credit union I got the loan from the first time around.

Best answer:

Answer by happy heart
I think what might have happened is the loan off. probably keyed into the system a new quote…and if so that would probably have been the correct interest rate for a 5-6 yr new car loan. The interest on used vehicles are always slightly higher because the car has already depreciated and the banks can’t carry their loans but I think 3-4yrs. on used autos.

As for as your credit score that’s really good. The only other thing I can thing of why they wouldn’t give you 15k could be your debt to income ratio….if that’s on the border of being to close to the “so called” line…%…they were willing to lend you the money but didn’t want the loan to push you any closer on you ratio %.

Back to your info missing. During the 30 days, had you been late on any of your billings that is reported to the credit bureaus..did you over extend any cc’s or anything like that? did you possibly go and open up any new accounts or try to get a loan with any one else during the time you first applied and the 2 time you went back? If you did, then they could have “shotgunned” your credit report to several different banks to get you the cheapest rate but it causes your credit score to have points taken off of it. Everytime you apply for credit…it takes away from your credit score. All these things are taken into consideration when your credit is pulled, which could be maybe a reason for the increased interest rate. And you’re right about if you don’t have it in writing it’s your word against the loan officers and the bank will defend it’s officer…almost all the time due to business relations.

Maybe this will help you. If your credit is that good…why don’t you try to get a brand new vehicle… but you do what’s right for you…just a suggestion. Be Blessed HH

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