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Established Member
tweetylove0405
Posts: 12
Registered: ‎12-30-2012

Auto Loan Approval-New to this!!!!

[ Edited ]

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

Valued Contributor
tooleman694
Posts: 2,257
Registered: ‎08-25-2011

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

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.

Established Member
ALLevesque
Posts: 35
Registered: ‎12-30-2012

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

[ Edited ]

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.

 

 

 

AMEX BCE: $15K, Chase Sapphire: $5k, Discover More: $3250, Kay Jewelers: $7200, Lowes: $3000, TD Easy Rewards: $1000, CapOne:$750, CapOne:$750, CareCredit: $3500, Lenscrafters $500, Victoria Secret: $920, Wells Fargo (Furniture card) $2800, Best Buy:$900, American Eagle: $600

2013 Goal: Garden and 740+ scores across the board.
Established Member
ALLevesque
Posts: 35
Registered: ‎12-30-2012

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

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.

AMEX BCE: $15K, Chase Sapphire: $5k, Discover More: $3250, Kay Jewelers: $7200, Lowes: $3000, TD Easy Rewards: $1000, CapOne:$750, CapOne:$750, CareCredit: $3500, Lenscrafters $500, Victoria Secret: $920, Wells Fargo (Furniture card) $2800, Best Buy:$900, American Eagle: $600

2013 Goal: Garden and 740+ scores across the board.
Established Member
tweetylove0405
Posts: 12
Registered: ‎12-30-2012

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

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

Established Member
ALLevesque
Posts: 35
Registered: ‎12-30-2012

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

Good luck! Keep us posted!
AMEX BCE: $15K, Chase Sapphire: $5k, Discover More: $3250, Kay Jewelers: $7200, Lowes: $3000, TD Easy Rewards: $1000, CapOne:$750, CapOne:$750, CareCredit: $3500, Lenscrafters $500, Victoria Secret: $920, Wells Fargo (Furniture card) $2800, Best Buy:$900, American Eagle: $600

2013 Goal: Garden and 740+ scores across the board.
Regular Contributor
ImprovingYouth
Posts: 154
Registered: ‎09-21-2012

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


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.

Age: 22 //Cards: Chase Freedom, Chase Amazon Visa, Discover IT, CreditOne, CapOne Quicksilver, CapOne Cash, Walmart, Barclaycard, Citibank BestBuy, NavyFederal Visa Signature cashRewards //AAoA: 1 Year 3 Months (but going down quickly :smileytongue:) //CK:692, Sesame:656
Valued Contributor
maiden_girl
Posts: 1,767
Registered: ‎12-29-2011

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

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.

The truth is out there...
FICO scores: 724 (EQ) 709 (EX) 711 (TU) 4/14 | Goal score: 750+ (all 3)
Tradelines: Capital One (5.0k) | Discover IT (5.0k) | Walmart Discover (3.0k) | Chase Freedom NPSL | Citi Simplicity (8.0k)
--------------------------Gardening until my credit recovers...NO MORE INQUIRES TIL 2015
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

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

+1, getting a car equal to the income you make won't look good to banks. You need to go lower.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Frequent Contributor
dabrian
Posts: 271
Registered: ‎12-10-2012

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

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