topic Re: Auto Loan Approval-New to this!!!! in Auto Loans

Auto Loan Approval-New to this!!!!

tweetylove0405 — Fri, 04 Jan 2013 00:43:52 GMT

I currently am in need of a new vehicle. I don't have any negatives on my credit. My Eq (FICO) is 641. I have one student loan that I have been making payments on. My credit history is about 1 year 5 months long with no other credit. Would this cause me to have a higher interest rate or even a decline. Looking for a new or certified used car between $16,000 - $18,000 with about $2,000- $3,000 down.

Income: 16,000

Current : Eq FICO 641

Credit Karma 656

Credit Sesame 680

Re: Auto Loan Approval-New to this!!!!

tooleman694 — Fri, 04 Jan 2013 01:22:31 GMT

If that is 16000 a year, I dont think you have the income needed to get an auto loan at all. I think 24,000 a year is the minimum for most auto loans. You will need a cosigner.

Re: Auto Loan Approval-New to this!!!!

ALLevesque — Fri, 04 Jan 2013 01:45:30 GMT

When i got my first auto loan, by myself, I think i was barely making 12k/year. I was a college student working part time... my interest rate was 15.99%-- BUT, my loan was only for 6k-7k. This was in 2007, so I'm not sure what's changed since then. I think you can get approved for a higher interest rate, but I wouldn't expect to get approved for as much as a new car will cost.

In 2008 we purchased an older SUV (It was 6-7 years old i think), I cosigned with my husband, our credit scores were not great, he was probably high 500s, I was low to mid 600s, and we got a 13.99%

Since then I've gotten great rates, We refinanced the above SUV in 2009 at 4%, 0% on a new vehicle in 2010 (I was working part time for this one too actually, maybe making 13-14k?) , 1.9% on a certified used in 2011 (cosigned with my Husband), 2.49% on an older used truck in 2012 and 1.9% on a new this week.

Just a little insight to my history. I think you can get approved, but I wouldn't expect a 20k car.

Re: Auto Loan Approval-New to this!!!!

ALLevesque — Fri, 04 Jan 2013 01:47:01 GMT

Try getting preapproved at a credit union before shopping for a vehicle. I've had a lot of great experiences at CU's, and they usually have great rates. You can tell them you're looking for 16k loan maximum, and they can tell you your max.

Re: Auto Loan Approval-New to this!!!!

tweetylove0405 — Fri, 04 Jan 2013 02:24:22 GMT

Thank you. I am actually a member of a CU so I will definitely go by and see them.

Re: Auto Loan Approval-New to this!!!!

ALLevesque — Fri, 04 Jan 2013 02:33:26 GMT

Good luck! Keep us posted!

Re: Auto Loan Approval-New to this!!!!

ImprovingYouth — Fri, 04 Jan 2013 15:08:58 GMT

tweetylove0405 wrote:
I currently am in need of a new vehicle. I don't have any negatives on my credit. My Eq (FICO) is 641. I have one student loan that I have been making payments on. My credit history is about 1 year 5 months long with no other credit. Would this cause me to have a higher interest rate or even a decline. Looking for a new or certified used car between $16,000 - $18,000 with about $2,000- $3,000 down.

Income: 16,000
Current : Eq FICO 641
Credit Karma 656
Credit Sesame 680

Ok, if you are still living at home and have no other expenses you might be able to pull off a smaller loan than you wanted, but you will definitely be paying high interest rates like 10%+. IMHO, I would advise getting a co-signer if at all possible, if not then look for a smaller loan or use the 2-3k you have and buy a junker to get you around to and from work.

Re: Auto Loan Approval-New to this!!!!

maiden_girl — Fri, 04 Jan 2013 20:26:01 GMT

If your income is only 16k...I probably wouldn't be looking at a loan between 16-18k. Your payments would probably be around $350. Go online and search some cars under 13k. After taxes and licenses...your loan will inch back up a few thousand.

Re: Auto Loan Approval-New to this!!!!

MovingForward_2012 — Sat, 05 Jan 2013 15:37:51 GMT

+1, getting a car equal to the income you make won't look good to banks. You need to go lower.

Re: Auto Loan Approval-New to this!!!!

dabrian — Sun, 06 Jan 2013 17:08:24 GMT

Look for a cheaper car with your income. Do not look for someone to cosign a loan with you.