Getting a Bank Loan Question

[FierceAXboi]

I have a question that my girlfriend was wondering

My girlfriend wants to pay off a car that she is currently making payments on to her dad. She wants to go in for a auto loan to the bank to get a loan for a used car. In a case like this since there is no dealer involved would the bank after approval simply give her a check for the approved amount? Does the she have to bring in the car deed? or her the person seeling the car with? I guess what shes trying to do is pay off the car to her dad with a loan with out the dad knowing the $$ came from a bank loan.........

 

[cepmom]

I just got a bank loan for my new car...I had to bring something with me from the dealer stating the VIN for the car and the agreed upon $$ amount. I think she would have to have some sort of documentation from the seller of the car to prove that she is actually using the money for a cr, and not for personal use. She could perhaps take out a personal loan though, but probably at a higher interest rate. HTH

 

[FierceAXboi]

Good Idea...........Anyone know if going through a Credit Union vs a Bank makes it easier to get a loan?better interest rates?

 

[tinatark]

Unless he will give her a free and clear title before he has $ in hand, she will have to bring him in along with the title to the bank/credit union. Does he have a loan she will pay off? If so, she will need payoff information from that institution.

Her other option is to get a personal loan/credit card for the car, then when she gets the free and clear title, finance the car to pay off the loan/credit card.

Either a bank or CU will need the title or current owner to perfect the lien.

 

[FierceAXboi]

Thanks all very helpful advice one questions

Is a loan of any kind easier through a Credit Union over a Bank

 

[cepmom]

we got our loan through our bank..they had a good rate and it is local. I have no experience with a credit union though, sorry.

 

[FierceAXboi]

Thanks all very helpful advice one questions

Is a loan of any kind easier through a Credit Union over a Bank

 

[FierceAXboi]

Sorry double post

 

[golfgal]

How much would she need to borrow? Could she do a line of credit that is unsecured?

 

[kbkids]

Thanks all very helpful advice one questions

Is a loan of any kind easier through a Credit Union over a Bank

In my experience, our bank is way easier to deal with than credit unions. We tried two different credit unions, and both had ridiculous requirements. I worked in banking (in the loan dept), so I knew what they were asking for was crazy. JMO - your may differ.

 

[mistydoodles]

I work as a loan officer for a credit union. I don't think it is easier to get a loan at a credit union vs. a bank. It all depends on your credit history and the ability to repay the loan.

The only time the credit union might be easier if the loan is kind of on the line of being approved. They might approve it if she has an account with the credit union and is she has direct deposit. BUt this would really be up to the loan officer.

As far as the title goes, it depends on how much the loan is for and if she is doing it as a car loan. If the loan amount is alot they will ask to have a purchase offer filled out by the seller and have a copy of the title to verify the VIN. Then they will make the check out to the seller.

If she wants to avoid this then she should try for a personal loan but depending on the amount this may be harder to get.

 

[FierceAXboi]

Thanks your all very very kind

The amount of the loan would be no more then $7,000. The current pay of is 6230.00.
A line of credit would be like a credit card right? I was thinking if she does this lets say with a VISA and of course immediately maxs it out paying for the car....as someone suggested then once she gets the car title she applys for the car loan and pays the credit card. Wont her debt to income ratio show as high. She has a maxed out credit card for $6000 and now shes applying for a loan.....

 

[mistydoodles]

But if she tells the loan officer that she wants to loan secured with the car to payoff her credit card that she used to purchase the car they will exclude this credit card from her debt to income ratio. So then she will be in the same category as before with the credit card.

The loan officer will mostly issue the check to the credit card company to assure this debt will be paid off in full.

The only thing though she might want to close out the credit card once she pays it off with the auto loan so she won't be tempted to use it later on and then be in a bad position with her d/i ratio and her credit score.

 

[FierceAXboi]

you all been very very helpful. so far this is what ive learn NO car loan since she wouldnt get one without the title or seller being involved in one way or another
A un secured personal loan is the way to go
or a credit line

My question is as far as the credit line goes what would she do call visa and apply for a card and hope is a limit that she needs? call one her curretly active and open cards and ask for a Credit Limit Increase? or are tehre special credit cards specifically for situations like this?

 

[FierceAXboi]

bumo bump

 

[FierceAXboi]

another nice friendly bump

 

[mistydoodles]

She can either call one of her existing cards and request an increase of limit or apply for another card at her bank or credit union.

Either way would work.

I think the best thing to do though would go to her bank and discuss what she is trying to do with a loan officer there. They can figure out what product would be best for what she is trying to do. I would be clear about how she doesn't want to involve her father if at all possible.

Good luck.

 

[FierceAXboi]

Thanks