Very dissappointed with PenFed - Auto loan - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Alvin@PCMofNC · 10-19-2009, 05:30 PM

I learned of Penfed credit union via this site (camaro5.com). They seem great with 3.99% new auto loans and great rates on credit cards but they do not seem to want to loan any money. So far I've applied for one of their credit cards and a auto loan and was denied on both due to "insuffecient debt to income ratio"

This is crazy to me. I'm still pretty young but still I have a 880 credit score. I've owned a house for 2 years but I'm something like 8 years ahead on payments. I've bought several cars and have paid every one of them off early. I routinely carry a credit card balance but always pay it off within a month or two.

I won't go into personal financial details but my sole monthly income is about twice of what my whole household monthly obligations are. So this is not counting what my fiancee of 5 years brings to the table. (she makes as much as I do) I have never once been late on any bill nor do I have anything negative on my credit (checked as of 2 days ago)

I'm really disgusted with them and told them to cancel my accounts. Signing up with them has been nothing but heartache and worse yet I have a two more credit inquiries that I do not need on my credit score.

patriotpa · 10-19-2009, 05:58 PM

Wasn't a prob for me. Filled out the app, got check in mail.

BackinBlackSS/RS · 10-19-2009, 06:03 PM

Your problem is this "insuffecient debt to income ratio", but you say this is not the case.
You need to get this clarified with them. They obviously are not looking at the correct information, or find out what their standards are for debt to income ratio.

Alvin@PCMofNC · 10-19-2009, 06:06 PM

Either way, the person I spoke to on the phone wasn't helpful at all in both cases when I asked why or how and what I could do about it.

jrboyd_1980 · 10-19-2009, 06:09 PM

You should have a MAXIMUM of 45% debt income ratio based on gross income. If the car loan exceeds that then no go you won't get approved. If you have $4000 a month incoming they only want 1800 a month going out. They are doing it for your own good when they do turn it down, based on the information they are giving.

coolman · 10-19-2009, 06:38 PM

Not being a smart ass, but how due you have a credit score of 880 when 850 is the highest you can get? Debt to income ratio is getting a real hard look once again after the enconomy tanked.

Alvin@PCMofNC · 10-19-2009, 06:59 PM

Its a vantage credit score, it goes up to 990.

It what I got this weekend by checking up on my credit. Your allowed one checkup per year at https://www.annualcreditreport.com/cra/index.jsp

coolman · 10-19-2009, 07:03 PM

Quote:

Originally Posted by Alvin

Its a vantage credit score, it goes up to 990.

It what I got this weekend by checking up on my credit. Your allowed one checkup per year at https://www.annualcreditreport.com/cra/index.jsp

Is that something new? My wife is in banking and never heard of it. Most banks use fico score.

Alvin@PCMofNC · 10-19-2009, 07:13 PM

Fico is more popular. When you go to that website I mentioned earlier 2 out of the three give you a Vantage score, one gives you a Fico. I should have gone for the one that gives you the Fico.. None of them give you any score for free, they make you pay for it but some law says they have to let you check up on your history and accounts for free once a year.

I'm just disgusted by the whole thing. if you have a perfect payment history and a good to great score a reasonable car loan shouldn't even be a question. Much less a credit card. WTF?

All this reminds me of when we bought our house a couple years ago. Both of us had quite a bit of money in the bank (about half of our annual salary) and FICO scores above 820 but we where treated like low life dead beats by Wacovia and RBC Centura. Now here we are a couple years into the loan and we are way ahead of schedule making half to double extra in payments every month. I gave it back to Centura by closing our business accounts, loans, and personal accounts. The hell with both of them. Both tried to bait and switch us to ARM mortgages within 2 days of closing, Wacovia wanted me to use my savings account to pay off 2 cars I had a loan on instead of keeping that money in my savings, both made us jump threw all sorts of hoops to get approved. Sick of both and something like 80 days past the day where where supposed to close we said F- it and went to our builders mortgage company. 5 business days later we where in our house paying the same rate the banks wanted 30 year fixed!

I'm not particularly pleased with our current bank either.. bank of america. Last year both of our credit cards jumped 15%-20% in interest! WTF? Neither of us had balances that really mattered, both of us just paid them off that month and will not use the card anymore but it leads you to wonder.. what about those people who have lost their jobs, or are having a hard time making ends meet and are using a credit card to get them by. Thank god we where never in that situation but what if you where between jobs and had a couple thousand on your credit card then all of a sudden your rate tripled!?

I swear banks are no different than your loan shark mobster. And to think we are the ones who have to bail them out.

Call me bitter.

jrboyd_1980 · 10-19-2009, 07:23 PM

You have insufficent debt income.. You have to much going out than going in.. or do you believe that banks should allow 100% debt to income ratio? The debt income ratio is for consumer benifit not theirs. Like I said you must have over 45% debt to income ratio with the new loan so the won't do it.. If you are making so much money, quit being better, use that extra half of your money to payoff whatever it is you have outgoing then apply for loans. Heaven forbid that banks try to cover their ass and yours by making sure you have Money left over after all your bills.. OMG what uncaring bastards.. Quit complaining.. Don't like the APR then don't get a loan, and don't get a car.

Alvin@PCMofNC · 10-19-2009, 07:28 PM

Maybe you missed it where I said my income is roughly twice my monthly obligations and when you count my fiancee which is on all but one of my loans we make 4x our monthly obligations..

You must work for them or something.

CyberGray2SSRS · 10-19-2009, 07:29 PM

Credit is a privaledge, not a right. If I dont want to lend you money, I dont. Tuff shit. There is obviously more to the story because if your legit, you wouldnt have a problem getting a loan.

CyberGray2SSRS · 10-19-2009, 07:30 PM

mortgage
auto loan
student loans
credit card debt

all gets counted for, someone mentioned 45%, if half goes to these things, then your 5% over

talwell · 10-19-2009, 07:32 PM

Keep in mind that in most cases they will not consider your fiance's income towards your household obligations or your debt ratio. If you were married or filiing with her as a co-signer this would be different but you may have to talk to them and give some type of proof of joint residence and her income sources. This should reduce your debt ratio. As well, available debt is considered many times as well - so check to make sure the revolving credit lines you have are not open with huge available credit lines. Make sure you dont have a home equity line as well - back when the banks were giving money away they used to extend home equity lines of credit up to 115% of your home value. Even if you are not using the credit the banks still see this as a potential future obligation and it will affect thier decision.

If all else fails - try to locate a low interest rate line of credit on your home with a fixed interest rate. This is a secure obligation and in many times you can get a great price on the money you are using.

10-19-2009, 05:30 PM	#1
Alvin@PCMofNC Drives: 2010 IOM RSS Join Date: May 2009 Location: Mooresville Posts: 363	Very dissappointed with PenFed - Auto loan I learned of Penfed credit union via this site (camaro5.com). They seem great with 3.99% new auto loans and great rates on credit cards but they do not seem to want to loan any money. So far I've applied for one of their credit cards and a auto loan and was denied on both due to "insuffecient debt to income ratio" This is crazy to me. I'm still pretty young but still I have a 880 credit score. I've owned a house for 2 years but I'm something like 8 years ahead on payments. I've bought several cars and have paid every one of them off early. I routinely carry a credit card balance but always pay it off within a month or two. I won't go into personal financial details but my sole monthly income is about twice of what my whole household monthly obligations are. So this is not counting what my fiancee of 5 years brings to the table. (she makes as much as I do) I have never once been late on any bill nor do I have anything negative on my credit (checked as of 2 days ago) I'm really disgusted with them and told them to cancel my accounts. Signing up with them has been nothing but heartache and worse yet I have a two more credit inquiries that I do not need on my credit score.

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
2006 TRAVERSE CITY AUTO CONFERENCE	KILLER74Z28	Off-topic Discussions	2	09-18-2010 09:45 AM
Penfed approval/financing question	shane	Camaro Price \| Ordering \| Tracking \| Dealers Discussions	15	06-16-2009 02:29 PM
Iacocca rips auto industry, warns: Don't sell Chrysler	KILLER74Z28	General Automotive + Other Cars Discussion	6	04-13-2007 11:38 PM

10-19-2009, 05:58 PM	#2
patriotpa Account Suspended Drives: 02 Silverado, 09 Vue, 10 1SS Join Date: Aug 2008 Location: Tired of apologizing when we should be kickin' butt! Posts: 1,966 View My Garage	Wasn't a prob for me. Filled out the app, got check in mail.

10-19-2009, 06:03 PM	#3
BackinBlackSS/RS Go Blue!!!!! Drives: 2012 Cruze LT Join Date: Mar 2009 Location: Indiana Posts: 23,290	Your problem is this "insuffecient debt to income ratio", but you say this is not the case. You need to get this clarified with them. They obviously are not looking at the correct information, or find out what their standards are for debt to income ratio.

10-19-2009, 06:06 PM	#4
Alvin@PCMofNC Drives: 2010 IOM RSS Join Date: May 2009 Location: Mooresville Posts: 363	Either way, the person I spoke to on the phone wasn't helpful at all in both cases when I asked why or how and what I could do about it.

10-19-2009, 06:09 PM	#5
jrboyd_1980 A ***'s Headache Drives: Everything Join Date: Aug 2009 Location: Texas Posts: 2,174	You should have a MAXIMUM of 45% debt income ratio based on gross income. If the car loan exceeds that then no go you won't get approved. If you have $4000 a month incoming they only want 1800 a month going out. They are doing it for your own good when they do turn it down, based on the information they are giving.

10-19-2009, 06:38 PM	#6
coolman Guest Join Date: Jun 2009 Location: PA Posts: 4,812	Not being a smart ass, but how due you have a credit score of 880 when 850 is the highest you can get? Debt to income ratio is getting a real hard look once again after the enconomy tanked.

10-19-2009, 06:59 PM	#7
Alvin@PCMofNC Drives: 2010 IOM RSS Join Date: May 2009 Location: Mooresville Posts: 363	Its a vantage credit score, it goes up to 990. It what I got this weekend by checking up on my credit. Your allowed one checkup per year at https://www.annualcreditreport.com/cra/index.jsp

10-19-2009, 07:13 PM	#9
Alvin@PCMofNC Drives: 2010 IOM RSS Join Date: May 2009 Location: Mooresville Posts: 363	Fico is more popular. When you go to that website I mentioned earlier 2 out of the three give you a Vantage score, one gives you a Fico. I should have gone for the one that gives you the Fico.. None of them give you any score for free, they make you pay for it but some law says they have to let you check up on your history and accounts for free once a year. I'm just disgusted by the whole thing. if you have a perfect payment history and a good to great score a reasonable car loan shouldn't even be a question. Much less a credit card. WTF? All this reminds me of when we bought our house a couple years ago. Both of us had quite a bit of money in the bank (about half of our annual salary) and FICO scores above 820 but we where treated like low life dead beats by Wacovia and RBC Centura. Now here we are a couple years into the loan and we are way ahead of schedule making half to double extra in payments every month. I gave it back to Centura by closing our business accounts, loans, and personal accounts. The hell with both of them. Both tried to bait and switch us to ARM mortgages within 2 days of closing, Wacovia wanted me to use my savings account to pay off 2 cars I had a loan on instead of keeping that money in my savings, both made us jump threw all sorts of hoops to get approved. Sick of both and something like 80 days past the day where where supposed to close we said F- it and went to our builders mortgage company. 5 business days later we where in our house paying the same rate the banks wanted 30 year fixed! I'm not particularly pleased with our current bank either.. bank of america. Last year both of our credit cards jumped 15%-20% in interest! WTF? Neither of us had balances that really mattered, both of us just paid them off that month and will not use the card anymore but it leads you to wonder.. what about those people who have lost their jobs, or are having a hard time making ends meet and are using a credit card to get them by. Thank god we where never in that situation but what if you where between jobs and had a couple thousand on your credit card then all of a sudden your rate tripled!? I swear banks are no different than your loan shark mobster. And to think we are the ones who have to bail them out. Call me bitter.

10-19-2009, 07:23 PM	#10
jrboyd_1980 A ***'s Headache Drives: Everything Join Date: Aug 2009 Location: Texas Posts: 2,174	You have insufficent debt income.. You have to much going out than going in.. or do you believe that banks should allow 100% debt to income ratio? The debt income ratio is for consumer benifit not theirs. Like I said you must have over 45% debt to income ratio with the new loan so the won't do it.. If you are making so much money, quit being better, use that extra half of your money to payoff whatever it is you have outgoing then apply for loans. Heaven forbid that banks try to cover their ass and yours by making sure you have Money left over after all your bills.. OMG what uncaring bastards.. Quit complaining.. Don't like the APR then don't get a loan, and don't get a car.

10-19-2009, 07:28 PM	#11
Alvin@PCMofNC Drives: 2010 IOM RSS Join Date: May 2009 Location: Mooresville Posts: 363	Maybe you missed it where I said my income is roughly twice my monthly obligations and when you count my fiancee which is on all but one of my loans we make 4x our monthly obligations.. You must work for them or something.

10-19-2009, 07:29 PM	#12
CyberGray2SSRS Drives: SOON 2010 Cyber Gray 2SSRS Join Date: Sep 2009 Location: Conroe, Tx Posts: 40	Credit is a privaledge, not a right. If I dont want to lend you money, I dont. Tuff shit. There is obviously more to the story because if your legit, you wouldnt have a problem getting a loan.

10-19-2009, 07:30 PM	#13
CyberGray2SSRS Drives: SOON 2010 Cyber Gray 2SSRS Join Date: Sep 2009 Location: Conroe, Tx Posts: 40	mortgage auto loan student loans credit card debt all gets counted for, someone mentioned 45%, if half goes to these things, then your 5% over

10-19-2009, 07:32 PM	#14
talwell Drives: 1969 LS1 Camaro Join Date: Aug 2009 Location: Staten Island Posts: 1,061	Keep in mind that in most cases they will not consider your fiance's income towards your household obligations or your debt ratio. If you were married or filiing with her as a co-signer this would be different but you may have to talk to them and give some type of proof of joint residence and her income sources. This should reduce your debt ratio. As well, available debt is considered many times as well - so check to make sure the revolving credit lines you have are not open with huge available credit lines. Make sure you dont have a home equity line as well - back when the banks were giving money away they used to extend home equity lines of credit up to 115% of your home value. Even if you are not using the credit the banks still see this as a potential future obligation and it will affect thier decision. If all else fails - try to locate a low interest rate line of credit on your home with a fixed interest rate. This is a secure obligation and in many times you can get a great price on the money you are using.