[northerncalguy]

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?

[driverseven]

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.

[nostrum09]

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!

[NBRider88]

Originally Posted by northerncalguy

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?

I'd be happy to send you your credit score for FREE!...i do work at a mortgage company. Pm me if your interested.

[Red]

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.

[saalim]

Originally Posted by Red

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.

Is that legal?

nostrum, which credit union gives 4.5% for 60 months? The best I am getting is 5.5% from CapitalOne.

[bmq]

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.

[chrissal1]

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.

[NBRider88]

Originally Posted by bmq

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.

Yes your are right, you do need personal information, such as SS etc...and yes giving it to someone online is probally not the best way. If you are truly interested in it getting your credit score and do not want to just "give" your information online, then i can give you the number to my mortgage company, and we can go from there. Since you arent in need of a loan and arent going to be a customer ( you just want to know your credit score, to purchase a car) I would be willing to help you out and do it for free for two reasons:
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

[NBRider88]

Originally Posted by chrissal1

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.

Wow...shady? All i was trying to do here was help him out and get a him a free credit report since i am able to easily do it at my work. What benefit do you think im trying to get out of this? I just happen to work at a mortgage company and could easily pull the information up for him at no cost and no hassle. I cant believe you would think i am trying to "benifit" from this in any way...I was just trying tohelp out another E90post member.

[chrissal1]

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.

[nostrum09]

Originally Posted by saalim

Is that legal?

nostrum, which credit union gives 4.5% for 60 months? The best I am getting is 5.5% from CapitalOne.

I graduated from Rutgers University in NJ, so it's the Rutgers Student and Alumni Credit Union. It's a lot easier to belong to one than you might think. Do a search to see if your employer/school/relgious organization has one.

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!

[NBRider88]

Originally Posted by chrissal1

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.

Yes SS, and other personal informartion are a must-have to run your report, over the net would be dumb, however i can give you my company number/website if you like, everything i said was "just an offer" i am not tryin to sell anything or steal anyone's identity. If it is a big deal, then i will take back my offer to him and you can all forget about it if you think its a scam..

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.

[driverseven]

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.

[NBRider88]

Originally Posted by driverseven

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.

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...

[northerncalguy]

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 :-) .

[CALIF65GM]

Originally Posted by northerncalguy

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.

I'd go with the credit union rates. I applied online 2-weeks ago through BMWFS to see what kind of rate that I would get. I got 60 mths @ 6.4%. But to answer your original question, I don't even remember having to put any loans outstanding on the form, not even credit cards. It was strictly income info and the usual contact info.

[northerncalguy]

Originally Posted by CALIF65GM

I'd go with the credit union rates. I applied online 2-weeks ago through BMWFS to see what kind of rate that I would get. I got 60 mths @ 6.4%. But to answer your original question, I don't even remember having to put any loans outstanding on the form, not even credit cards. It was strictly income info and the usual contact info.

Cool -- I too will leave that info blank, I'll let them pull my report.

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.

[nostrum09]

Originally Posted by northerncalguy

Cool -- I too will leave that info blank, I'll let them pull my report.

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.

I can think of two reasons to go with BMWFS, but obviously these must be weighed against the lower rate provided by the credit union.

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.

[CALIF65GM]

Originally Posted by nostrum09

I can think of two reasons to go with BMWFS, but obviously these must be weighed against the lower rate provided by the credit union.

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.

Good points and that's why BMWFS charges more for the no-hassle advantage. One-stop shopping.