Bad Credit Auto Finance

armyguy90 · ‎10-29-2009

First day of myfico!

So I have a credit score of 532 from Equifax. I want to buy a new, new car for around $13000. I have a $7000 downpayment. Will I get approved for financing from ANYONE? If you think I will, can you reccomend who to apply to?

And before you reccomend I use the downpayment to pay any balances on credit cards I have, let me say I have no accounts with balances AT ALL because I paid them all back in July, and my credit score is still 532

Suggestions?

Anonymous · ‎10-29-2009

1st, what's causing your score to be so low? Any Recent lates, liens, collections?

I'd guess by paying 50% down you'll not have a problem getting financed thru a dealer, however your interest rate will likely be rather high,

Before you let a dealer run your credit thru 30 lenders to see who he can get the highest APR with, talk to a local bank or credit union to see what they can do for you BEFORE going to the dealer, You'll probably get better results with a credit union, at least they should be able to tell you what you need to clear off your credit reports to qualify for a loan,

Good luck,

armyguy90 · ‎10-29-2009

Thanks for replying lol.

Well as a young irresponsible high school teenager, I opened several credit card accounts: GOODYS-$200 limit, KOHLS-300 limit TARGET- $300 limit CAPITAL ONE- $500 limit CREDIT ONE: $300 limit. I didnt pay anything on them, maxed them out. They went to collections for about a year. Well ive grew up alot since high school over 2 years, joined the National Guard, and Im very determined to establish good credit. I paid every collection account (not knowing about pay-to-delete). I then opened a First Premier account (now I know also there was better routes to building credit) and have been paying on time for about 5 months now. Scores went from about 450 to 530 since I paid collections and opened First Premier Account.

And yea Im thinking about joining a credit Union before Istart applying for auto loans and see what they can do for me.

Anonymous · ‎10-30-2009

Open an account at Navy Federal Credit Union today.

Set your direct deposit up through them.

After a few pays hit, apply for a credit card.

use them first for your car loan

BTW with 7K out of 14K you will probably get approval at any dealership, but give NFCU a try.

armyguy90 · ‎10-30-2009

Thanks Ill do that and give them a try

Anonymous · ‎11-01-2009

I used to be a sales manager for a major car dealership and I can guarantee you that you will get approved

with 7k down on a 13k loan without a problem even with that score. With that amount of down payment and

you score, your interest rate will be probably 12-17 percent. I would also recommend join a cu. You might

be able to get a better rate with that amout of down payment.

Anonymous · ‎11-02-2009

@Anonymous wrote:
I used to be a sales manager for a major car dealership and I can guarantee you that you will get approved
with 7k down on a 13k loan without a problem even with that score. With that amount of down payment and
you score, your interest rate will be probably 12-17 percent. I would also recommend join a cu. You might
be able to get a better rate with that amout of down payment.

I guarantee NO ONE anything on these boards unless I have a copy of the deal, and their credit report in front of me And even then I have no idea the day to day vaguaries of the company they are trying to do business with.

Not singling out the OP, but you rarely get the whole picture on these boards.