Possible to get an auto loan with defaulted student loan on CR?

alfstein — Sat, 17 Nov 2012 08:23:57 GMT

This is the short and tall of it:

I recently checked my credit score and as of this month my EQ/TU is 636/640. I have a defaulted federal perkins loan ($4700) that I finally tracked down last month - it went into default in 2010 (whoops!); and I'm in the process of rehabilitating. From reading the forums, I understand it will take 9 months to even be returned to the Dept or Edu for the original amount of $3000. I've moved, was completely disorganized for years, etc etc.. basically a mess. But, I'm trying to get back on track. I opened a secured credit card through my bank about 6 months ago (though it's only a low balance... $300), I keep the balance super low and make payments monthly to establish revolving credit. I believe my score has vastly improved in the last year alone, but I'm wondering if I'll be able to qualify for an auto loan while I still have the defaulted student loan on my CR.

I have very little established credit, besides this one loan that went rogue. My other student loan was for $4500 and I've paid it on time every month for the past 10 years, and there's only about $1000 left on it.

I opted for the loan rehab rathern than settling because I assumed in the long run it would look better on my report to have it come out of defaulted status rather than just paid/closed. Was I incorrect in doing so, should I have just paid it in full?

Will I even be able to get an auto loan, if I my own bank wouldn't grant me one? I applied for a 13k used auto loan with Wells Fargo, having banked with them for 10+ years, have a savings, and secured cc with them, and I didn't even qualify for even a 12% loan because of my delinquent student loan and lack of other credit. What should I do? Should I hold off on purchasing a newer vehicle til my default status is resolved?

Re: Possible to get an auto loan with defaulted student loan on CR?

webhopper — Sat, 17 Nov 2012 20:00:53 GMT

alfstein wrote:
This is the short and tall of it:

I recently checked my credit score and as of this month my EQ/TU is 636/640. I have a defaulted federal perkins loan ($4700) that I finally tracked down last month - it went into default in 2010 (whoops!); and I'm in the process of rehabilitating. From reading the forums, I understand it will take 9 months to even be returned to the Dept or Edu for the original amount of $3000. I've moved, was completely disorganized for years, etc etc.. basically a mess. But, I'm trying to get back on track. I opened a secured credit card through my bank about 6 months ago (though it's only a low balance... $300), I keep the balance super low and make payments monthly to establish revolving credit. I believe my score has vastly improved in the last year alone, but I'm wondering if I'll be able to qualify for an auto loan while I still have the defaulted student loan on my CR.

I have very little established credit, besides this one loan that went rogue. My other student loan was for $4500 and I've paid it on time every month for the past 10 years, and there's only about $1000 left on it.

I opted for the loan rehab rathern than settling because I assumed in the long run it would look better on my report to have it come out of defaulted status rather than just paid/closed. Was I incorrect in doing so, should I have just paid it in full?

Will I even be able to get an auto loan, if I my own bank wouldn't grant me one? I applied for a 13k used auto loan with Wells Fargo, having banked with them for 10+ years, have a savings, and secured cc with them, and I didn't even qualify for even a 12% loan because of my delinquent student loan and lack of other credit. What should I do? Should I hold off on purchasing a newer vehicle til my default status is resolved?

I think going through rehab was the right thing to do. After I got out of school I realized that one of my loans was needing to be paid directly to the school this was in 2006. I was disorganized but I was paying Nel Net and Sallie Mae, basically 7 different accounts, and didn't know about this school account. Anyways I called them up and explained how clueless I was, apologized, and got the address to send them some cash... 2 payments, paid in full. I then did GW phone calls about the credit reporting (this was before GW letters)

Things are changing, lenders are less likely to do anything with a phone call, so definately use this rehab program to get yourself straight :)

Good luck to you!!

Is there anyway that your current car can last you 9 months? If so I would make it last and then get a car after finishing rehab.

topic Possible to get an auto loan with defaulted student loan on CR? in Auto Loans

Possible to get an auto loan with defaulted student loan on CR?

Re: Possible to get an auto loan with defaulted student loan on CR?