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Established Member
Posts: 12
Registered: ‎12-30-2012
0

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
Posts: 2,300
Registered: ‎08-25-2011
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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
Posts: 36
Registered: ‎12-30-2012
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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.

 

 

 

Established Member
Posts: 36
Registered: ‎12-30-2012
0

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.

Established Member
Posts: 12
Registered: ‎12-30-2012
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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
Posts: 36
Registered: ‎12-30-2012
0

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

Good luck! Keep us posted!
Regular Contributor
Posts: 154
Registered: ‎09-21-2012
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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.

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Valued Contributor
Posts: 2,110
Registered: ‎12-29-2011
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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...
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Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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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.
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Frequent Contributor
Posts: 378
Registered: ‎12-10-2012
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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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