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Hey All,
First time here in this site. When the economy when down the tubes the construction company i worked for closed down, lost my job and had one vehicle repossed and another I turned in voluntarily. Well as you can imagine my credit tanked and I have been for the past four years trying to rebuild my credit. It was 515 at one point and now I am at 661 Experian, 660 TU, and 674 EQ. I am at 7% credit utilization, with one cc at $300, $500, $1000 from Target, $1200 Webbank and make 52k a year. I am in the market of buying a new car soon but I am scared that those two repo's from 09 will keep me from getting approved. Has anyone had anything similar and what transpired? With this type of scenario do you know which finance company I might have the best chance of going for? I know that car dealerships usually use a different scoring model which is different from the regular FICO. I am unsure if 4 years is enough time for this to not affect my credit as much, again I am new at all this. Any and all input is appreciated
Well the scores you have are not "auto enhanced" which you cannot buy. With the two repos...most likely your auto score is a lot lower than your current FICO scores. I think you could get financing but you will probably pay a very high rate. I had a repo after 60 days of being late in 2007. I bought a used car a year later with over 18% They claimed that my auto score was 490. My FICO was higher but I cant remember what it was. The repo I am sure drug my score down even worse. You can always try with Capital One. Good luck!
I would go to a credit union or your bank for financing. Don't even try the dealership. A CU is really your best shot for a decent interest rate. A dealership will take advantage of the fact that you don't know your auto enhanced FICO (and can't find out what it is!).
A CU gives people second chances. Have your explanation ready. You have already paid your dues for 4 years now, you should be able to get a relatively good rate since you have re-estabished yourself after the repo's. Hopefully you don't have any judgment from the repo's. Do you?
Well, my car kept on giving me issues so I went ahead and took the plunge and applied for Capital One Auto. I submitted the application and the next 60 seconds proved to be the most never wrecking seconds of my life. At the end of the the sixty seconds it said. CONGRATULATIONS YOU HAVE BEEN APPROVED! I now will get a blank check for 22k, planning on spending only 15k of it, at 7.7% APR. I am glad for forums like these and the advice everyone provides. Now off to car shop.
I think that is an amazing approval with the repo history. Just remember that if you maintain a good history on the car payments on this loan and the loan to value is in line you should be able to refinance to an even better rate in the future. But I have seen people on these forums have to accept a rate of 2X that or more to get back in the game. Congratulations on your solid credit rebuild between loans.
@jrwh1177 wrote:Well, my car kept on giving me issues so I went ahead and took the plunge and applied for Capital One Auto. I submitted the application and the next 60 seconds proved to be the most never wrecking seconds of my life. At the end of the the sixty seconds it said. CONGRATULATIONS YOU HAVE BEEN APPROVED! I now will get a blank check for 22k, planning on spending only 15k of it, at 7.7% APR. I am glad for forums like these and the advice everyone provides. Now off to car shop.
With check and rate in hand, you might find a dealership that can beat it! shorten up the term to 48 or 60 though if capital one is still on the 72 month deal... you don't want that!
I am actually with that interest rate for a 60 month deal. I will still negotiate.