Wow, I'm pre-approved for $50,000 auto loan

[Naomi]

So, what should I get?
I just noticed that my bank -USAA- is offering us the chance to go even farther in debt.
The $16,000 Mastercard, $8,000 auto loan, $10,000 heloc, and our $98,000 mortgage must not be enough for them. Of course, they have no clue we're going to file bk because we're current on everything - right this minute anyway.
Considering that I have no job right now and our income is <$3500/month...
How do we even qualify?

We got the same offer in 2007 and did buy my husband's truck then, but spent $16,000.

I really like USAA, but they are really way to easy when it comes to handing out loans/credit cards to people that can't afford them.
And of course we have to take the blame for taking advantage of that and not managing those things very well...which led us to needing to file bk.

Oh, the interest rate is 6.2399% Fixed

[Flamingo]

Is this a preapproval that came out of nowhere or did you apply for it for a car loan? If it just came in the mail without your applying, once you applied you would probably be turned down with the debt load showing on your credit reports and with what you would have to put on the application. Preapprovals almost always result in a credit check and that will be stated right in the paperwork you receive. Everybody gets them. Some even come in the names of family pets.

[OhioFiler]

My dog's FICO score is higher than mine!!!

[Naomi]

Is this a preapproval that came out of nowhere or did you apply for it for a car loan? If it just came in the mail without your applying, once you applied you would probably be turned down with the debt load showing on your credit reports and with what you would have to put on the application. Preapprovals almost always result in a credit check and that will be stated right in the paperwork you receive. Everybody gets them. Some even come in the names of family pets.

No, it's a real offer and I didn't apply for a car loan.
Other people on here who are with USAA will know what I'm talkng about. When I logged in to check my account, there is a "My Offers" tab.
This is what it says about my offer:

*Pre-approved Auto Loan. Auto loan rate is for a term of 60 months and is available when financing a 2008, 2009 or 2010 auto loan. This offer may not be used to refinance an existing USAA car loan. See more information on available rates and terms or calculate your monthly payments. Rates reflect a 0.25% discount for automatic payments. Total loan amount cannot exceed USAA's determination of vehicle's retail value plus tax, title and license.

There is no mention of a credit check or income verification for auto loan. I know they didn't verify my income in 2007 because I did it all over the phone and got paperwork sent to me to take to the dealership saying we were approved up to $50,000.

Now,the *Pre-approved Offers on USAA do say this:
All preapproved offers are subject to confirmation that you continue to meet approval criteria, including criteria related to your credit history. Secured credit is subject to collateral meeting underwriting criteria

[RainMoM]

My dog's FICO score is higher than mine!!!

lol.. So is my cat's score

[BkinTX]

Are you thinking H2? Something big and roomy?

Hehe.

[Naomi]

BK in TX, don't you have an auto loan with USAA?

I would never pay $50,000 for a car. My Xterra was about half that when I bought it in 2003 and I thought that was a lot.
I still have it though and no major problems so far *knock on wood*...

[BkinTX]

Yes, we are bk'ing it. We are upside down by quite a bit and our payments are huge. The rate is not bad but we really won't be getting a fresh start if we keep the SUV.

Last weekend we bought a minivan with cash.

[Naomi]

I thought so. I think I responded to that post.

Do you have credit cards or anything else with USAA?

[BkinTX]

Yes we have about 3k on a USAA MC.

[Naomi]

I'l trade you! Our cc is $16,000.
We haven't stopped making payments yet, but really need to.
We have so much with USAA, but only want to keep the truck. Don't want the house or the credit card debt.
I'm already stressed wondering how they will react....
I need to set up bill pay from my other checking account instead of having to call them to pay.

[BkinTX]

So far, so good with USAA.

We still have our auto policy and recently added the minivan to it without any problems. I am just waiting for them to tell us they're dropping us...but hoping they won't.

I have heard they are difficult to deal with with bk and had been under the impression that if we wanted to keep the truck we'd have to pay the cc off too. But I have no idea if there's any validity to that at all.

All the customer service reps have been nice, at least.

[Naomi]

My dog's FICO score is higher than mine!!!

not good.

This should change quickly since Aug will be last credit card payments we make...may not even pay those.

BKinTX, our car insurance is with USAA also. Our policy renews in Aug for another 6 months so I don't think they'll drop it until after that. If they are going to.
Hope I get the same nice people you did. lol

From my FICo report, this pretty much sums up why I'm on a BK forum.
You've made heavy use of your available revolving credit.

Ratio of your revolving balances to your credit limits
71%
For FICO High Achievers [?], this ratio is 7%, on average.

On the plus side:
Number of your accounts with a missed payment
0 accounts
About 93% of FICO High Achievers [?] have no missed payments at all.

Just one more thing...guess I'm going to be in that 5%-
Most lenders would consider consumers with a score of 731 to be low risk because 5% of people with this score get into serious credit trouble.

The risk rate shown here is the percentage of borrowers who reach 90 days past due or worse (bankruptcy, account charge-off) on any credit account over a two-year period.

[OhioFiler]

not good.

This should change quickly since Aug will be last credit card payments we make...may not even pay those.

BKinTX, our car insurance is with USAA also. Our policy renews in Aug for another 6 months so I don't think they'll drop it until after that. If they are going to.
Hope I get the same nice people you did. lol

From my FICo report, this pretty much sums up why I'm on a BK forum.
You've made heavy use of your available revolving credit.

Ratio of your revolving balances to your credit limits
71%
For FICO High Achievers [?], this ratio is 7%, on average.

On the plus side:
Number of your accounts with a missed payment
0 accounts
About 93% of FICO High Achievers [?] have no missed payments at all.

Just one more thing...guess I'm going to be in that 5%-
Most lenders would consider consumers with a score of 731 to be low risk because 5% of people with this score get into serious credit trouble.

The risk rate shown here is the percentage of borrowers who reach 90 days past due or worse (bankruptcy, account charge-off) on any credit account over a two-year period.

My wife and I were both around 720-730 before we stopped paying cc's. After 5 months our scores are in the 625-640 range.

You ought to start a 5%er club!

[Naomi]

Well, that's not too bad of a drop, huh?

Hmm, am looking at my husband's now. His score is 697. And his amount of debt is bad.

He has 0 missed payments, but his ratio is 81%.

He only has 2 cards in his name only, but they have low limits and are maxed out - about $4,000.
I guess that's why his score is lower.

I have 3 cards in my name only that I owe about $15,000. And have about $8000 of available credit left on those cards.