Auto Loans with bad credit

[Anonymous]

Hello, I have been with my company a little under a year. I am a granite fabricator. I make decent wages - about 550-600 a week ~2400 a month. I obtained a free credit report and I have 8 medical bills in collection and another small collection of 50 dollars from a TV company... I believe my credit score is under 600. I am looking for a small auto loan of 4,000 dollars...I have 2,000 for a down payment. Will any company help me with an auto loan? Or will I be stuck with sketchy buy her pay here places? Thanks for any help. 

[Anonymous]

If you have no other expense and make 2400 a month take home. Do you have any credit card? Having 2000 down you should consider a new car like a civic or Corolla. Something under 20k. New car financing is easier to get especially you having some sort of down payment

[Anonymous]

I am a subcontractor and only have last year 1099 to show and of course I could get a letter of employment from my boss. I don't have any credit cards but also no banking info either. I am just worried because I believe my score is very low and I have a lot of accounts in collection. 

Also...if I was looking for a vehicle in the $6,000 range...should I subtract my down payment of 2,000 from the loan amount I request? I am very new to all of this. I recently totaled a vehicle I've had for several years and no experience with auto loans or purchasing...

[Anonymous]

Yes so if your looking for a car in 6000 range with 2000 your looking for a loan in the 4000 range. If I were you go on capitalone.com site and check out their auto loan and see if they can do anything for you. What year car are you trying to get for 6000? Also remember lots of company doesn't like loaning out under 5000. Also harder to get loan for old car. That's why I suggest the new route

[Anonymous]

Would I stand a better chance of getting a loan if I upped my price range to 7,000 so I could apply for a 5,000 loan? Or maybe drop my down payment to 1,000 and stick to my price range? Do down payments affect the probability of a car loan?

Sorry for all the questions - just trying to feel everything out. I was really hoping to get a vehicle in the later 2000s range - I don't want anything to expensive because I fear high interest rates will bleed me dry and I could pay off my loan fairly quickly if I stick to a cheaper range.

The disposable income that I do have I'm going to try and put towards my hefty medical bills...

[Anonymous]

Go to Capitol one website. Go into auto financing and see if they can finance you. Try for a new car loan and see what they can do for you. You will be surprise. Doesn't hurt to get a prequalify 

[StartingOver10]

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@Anonymous wrote:

Hello, I have been with my company a little under a year. I am a granite fabricator. I make decent wages - about 550-600 a week ~2400 a month. I obtained a free credit report and I have 8 medical bills in collection and another small collection of 50 dollars from a TV company... I believe my credit score is under 600. I am looking for a small auto loan of 4,000 dollars...I have 2,000 for a down payment. Will any company help me with an auto loan? Or will I be stuck with sketchy buy her pay here places? Thanks for any help. 

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Pull your 3B report here so you can see what you have for various versions of FICO scores.

If you are using the CK scores or using the scores from the free credit reports at annualcreditreport.com, those scores are NOT indicative of what the lender will use. At least get your scores so you know where you stand. 

The one thing dealerships like to do (one of many) is to make you think your score is lower than it actually is so they can charge you a higher interest rate. If you pull your own consumer FICO scores here it won't affect your score and it will give you the knowledge you need to successfully negotiate with the auto dealership. And, if they are higher, which is very possible, then you might qualify for a credit union auto loan which is a better way to go for you financially.