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BMW 3-Series (E90 E92) Forum
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Another finance question
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09-29-2005, 01:17 PM | #1 |
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Another finance question
Does anyone know what type of debts & liabilities are used to determine creditworthiness when financing? More specifically, are educational loans factored in and if so, how heavily is this weighed in the overall equation. Also, do I have to explicitly list them in the credit application (I am getting ready to fill out the BMW credit app) Any thoughts?
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09-29-2005, 01:27 PM | #2 |
Curve junky
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Yes, education loans are still loans (if they're in your name). Biggest factor is whether or not you have been late in paying.
But the other major factor here is whether they think you have the income to cover all of your expenses. |
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09-29-2005, 01:45 PM | #3 |
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Before you fill out and submit the application, run a credit check on yourself and opt for receiving your credit score. By law, you can access your credit report for free once a year, but I don't know if that comes with a numerical score. If not (and I tend to believe it doesn't) you should go to one of the 3 agencies (Equifax, Experian, or TransUnion) and buy it. It will probably cost $30-$40 for your report from all 3 bureaus with your score.
This is important because it can help you to determine your creditworthiness. If your score isn't too high (say less than 650) you won't be in a good position to get a good rate from BMWFS, or you might not be approved at all, in which case you'll have to look for other financing. 650 to 750 you'll get decent rates and good chances of approval, above 750 is where you want to be for the best rates. Of course, the score is just one part of the big picture, so don't fret if the number isn't superb. As mentioned by driverseven, any loan will show up and will be factored in to the decision. I wouldn't lie, because they will run your credit report and a loan will definitely show up. Lastly, make sure you look at programs like Capital One Blank Check and E-Loan -- their rates are often much better than what BMWFS can provide. Even better, if you belong to a credit union, their rates are generally the best. As an example, I've heard that the best BMWFS will offer on a 60 month loan is 6.99% now, whereas Capital One will do 5.25% and my credit union will do 60 months for 4.50%. Sorry for all the info, since your question was very specific. I figured I'd spew this out just in case!
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09-29-2005, 01:54 PM | #4 | |
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I'd be happy to send you your credit score for FREE!...i do work at a mortgage company. Pm me if your interested.
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09-29-2005, 01:56 PM | #5 |
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Great post nostrum.
Too add to your post, dealers also have a very bad habit of adding a few points more to the rate you qualify for to up their profit. So let's day you qualify for 6.50 percent, they'll tell you your rate is 8.50 percent and keep the difference for themselves.
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09-29-2005, 02:01 PM | #6 | |
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nostrum, which credit union gives 4.5% for 60 months? The best I am getting is 5.5% from CapitalOne.
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09-29-2005, 02:04 PM | #7 |
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northerncalguy, PLEASE, PLEASE DO NOT give a stranger you talk to in an internet forum your ID information to pull a credit report. Nothing against NBRider88, but in today's world of identitiy fraud, it would be suicidal.
In order to pull a report you will have to provide your SS number, birthdate, etc. This is not info you want to share with strangers, under any circumstances. Pulling your credit report and score is very easy and painless. Just go to sites like www.equifax.com or www.myfico.com or any other legit places to get your score. Yes, it may cost you a couple of bucks, but you are about to make a major pucrhase and, in the big picture, this is not going to make a difference.
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09-29-2005, 02:42 PM | #8 |
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NBRider - that is a strange offer considering you work in the industry. Very Shadey.
Btw - I just got an eLoan for 60 months at 5.25% with no setup fees. They will give you an answer within 15 mins too. |
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09-29-2005, 02:45 PM | #9 | |
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A) because you are a E90post post member and love the car i do! and B) because - since i do work at a mortgage company - it would be of no cost. for either of us... but its up to you! just tryin to help you out
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09-29-2005, 02:50 PM | #10 | |
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09-29-2005, 02:52 PM | #11 |
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Maybe shadey was too strong of a term. Apologies. But you would have to have his SSN#, etc. Would you give that out over the net. Again, apologies. Don't mean to offend.
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09-29-2005, 02:55 PM | #12 | |
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I should have further qualified those rates by saying that those are the "best case scenario" rates. If you look in the fine print, it will say something like "our lowest rates are contigent upon excellent and substantial credit." Don't forget that the battle is only half-over once you've negotiated your price. It can happen where you're so happy with getting a car for a pittance over invoice that you then don't shop around for a good rate. Lastly, and someone please clarify/correct me if I'm wrong, but I believe that any "hard inquiry" made to your credit report (i.e., an inquiry from any company looking to extend you credit, NOT you viewing your own credit report) within a 2 week period counts as just 1 hard inquiry. So, if you're going to shop around, make sure to do it all within those two weeks, and once you find a loan you like, make sure that the rate is locked in long enough for you to get your car. In my case, since I don't know exactly when my car is coming in, I haven't applied for any loans yet, since chances are, the rate won't count once the car comes in and I'll have to do it all over again. Good luck!
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09-29-2005, 02:57 PM | #13 | |
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Anyways, we dont do "car-loans" we offer house loans, refinancing and cash-back. This offer was only for him to receive a free credit report.
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09-29-2005, 03:57 PM | #14 |
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NBRider88, no good deed goes unpunished as they say. I gasped a bit when I saw you made the offer -- I don't even put my actual birthday on these forums in case someone could put 2and 2 together -- but I do sense that you weren't up to anything other than trying to help.
To find out more about getting a credit report, this is the page at TRW that explains how to get a credit report While there are laws requiring the 3 big credit companies provide consumers with a "free" report, those companies have figured out a way to make free include shipping fees of $9.95 in some states. the link above explains which states. |
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09-29-2005, 04:33 PM | #15 | |
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Well, i am also suprised this all turned into such a big thing, but i know Information like this is very private and no, should MOST definitely NOT be done online, however I AM one of those company's that does this sort of thing, like all of those that you have named. I only offered it to him because he was in need and was a fellow E90 member, and i could for better terms, "hook him up" with a free credit report. The company i work for is owned by my father and has been around for 30+ years...it is legal and yes very legit. Im suprised my fellow e90 members would automatically resort to this being shady or illegal/not-legit. As it was a genuine offer. But i do understand one's right to not want personal information given up, especially to an unknown. So i take back my offer, and sorry for the inconvenience it was...
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09-29-2005, 07:16 PM | #16 |
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Great information everyone. I should have mentioned that I was previously approved by my local credit union and that I am using BMWFS as a backup -- hence the credit app question.
All my loans are in good standing and I have checked my credit report recently. I will proceed to get the FICO scores, so I can be well armed for the final finance negotiations. I have a feeling this will be trickier than the original Client Advisor negotiation. NBRider88 - much thanks for the offer. I have to praise you for your good intentions -- no other comments :-) . |
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09-29-2005, 09:56 PM | #17 | |
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09-29-2005, 10:41 PM | #18 | |
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For sure I will consider the credit union rate, but I want to to see how low the BMWFS rate can get. I've got 4.9% with the credit union. Are there any advantages to using BMWFS? As far as I am concerned, money is money and unless there are significant benefits to using BMWFS, I may just skip all of this. |
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09-30-2005, 08:25 AM | #19 | |
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1 - If your previous vehicle is a BMW on lease, there's that annoying $350 disposition fee at the end that a lot of people (including myself) have forgotten about. If you finance your next BMW through BMWFS, you still pay that $350 upfront, but BMWFS will credit your account after you finance through them on your next car. In my opinion, $350 is not an incentive to stick with BMWFS because of their higher rates (you'll potentially save thousands depending on the credit union rate and length of the loan). 2 - Gap insurance. If you're buying your BMW with little or no money down, chances are you'll be upside-down for quite a while. Gap insurance is included when you finance through BMWFS (to my knowledge -- I know it was included in my lease through them). That said, it's only a reason to finance through them if you can't find gap insurance anywhere else. The two best places to check are with your insurance company (they don't have to offer it, but some do) and with the place providing your financing (if not BMWFS). Again, in the long-run, you may find BMWFS not to be a good deal, especially if you have good credit and can get good loans elsewhere. BMWFS is good for those who want little hassle in obtaining financing -- you take care of buying the car and getting financed all in the same place.
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Current: 2008 E85 3.0i | Bright Red | Beige | Black Roof | Dark Poplar | STEP | ZPP | Navigation | Heated Seats | Premium Sound | Xenon
Current: 2006 E90 325i | Monaco Blue | Black | Aluminum | STEP | ZCW | ZPP | ZSP | iDrive | CA | Xenon | Logic7 | Sat Radio Retired: 2003 E46 325Ci | Mystic Blue | Gray | Myrtle Wood | STEP | ZPP | ZSP | Xenon | H/K Sound |
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09-30-2005, 10:34 PM | #20 | |
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5-2-08 e93-35 ED Montego w/Jade Grey, Step w/Paddles, PP, SP, CA, hot seats and iPod.Awaing re-delivery soon.
Debadged 330xi ED 11/14/05 Auto/Mystic Blue/Gray leather with Alum/PP/SP/CA/Fold-down rear seats/Alarm. Sold to Carmax on 6/7/08 with 50,624 miles on clock |
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