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Posts: 1
Registered: ‎07-07-2009
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Bad credit auto loan online?

I have recently been approved through roadloans.com after doing some research I have discovered that they don't really have the greatest reputation. The loan was approved for $7500 with $2500 down. Interest rate of 24% I was wondering if anyone had any suggestions on what site I should actually go to try to get approved for an auto loan with bad credit. My credit is very poor, fico-529, I do have a cosigner for my loan, fico of around 560 but has 2 auto loans on their report from co-signing, 1 of the cars were repoed so that has been stopping us from being able to get approved through an actual dealership through their special financing. My next stop would be a buy here pay here but I would like to avoid that only due to the high interest rate and not so reliable cars. Any advice would be great! Thank you.
Moderator Emerita
Posts: 3,090
Registered: ‎08-09-2008
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Re: Bad credit auto loan online?

Do you absolutely have to have a car now, and if so, can you afford to pay cash for an inexpensive used car until you've done a repair and rebuild job on your credit files? Do you have a relative or friend who might need to get out from under their current car payment due to financial difficulties who would let you assume the payments (and posession) of their car (with a legal written agreement to protect your interests)?

 

I wish I had some better ideas, but bad credit + a co-signer with bad credit is going to make for a financing nightmare in these difficult times. :-(

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Regular Contributor
Posts: 203
Registered: ‎10-16-2008
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Re: Bad credit auto loan online?


ohiogal123456 wrote:
I have recently been approved through roadloans.com after doing some research I have discovered that they don't really have the greatest reputation. The loan was approved for $7500 with $2500 down. Interest rate of 24% I was wondering if anyone had any suggestions on what site I should actually go to try to get approved for an auto loan with bad credit. My credit is very poor, fico-529, I do have a cosigner for my loan, fico of around 560 but has 2 auto loans on their report from co-signing, 1 of the cars were repoed so that has been stopping us from being able to get approved through an actual dealership through their special financing. My next stop would be a buy here pay here but I would like to avoid that only due to the high interest rate and not so reliable cars. Any advice would be great! Thank you.

 

Unfortunately you really don't have very many options. Subprime financing and buy here pay here really are your options. IMHO if you can at all avoid purchasing a car you should. If its possible to fix your car, then fix your car and immediately focus on credit repair. Even a 30-50 increase will likely reduce your interest rate and make your car loan more affordable. If you must purchase a car right now and you belong to a credit union, then I would apply for a loan there and see if your approved. I personally know people with 500 - 540 credit scores that were approved at one of our local credit unions. If the credit union option is not a plausable option and you must accept the roadloans option, then again I suggest focusing on credit repair. Maybe you'll be able to refinance in about six months with a good payment history and the remediation of some of the deragatory items on your report.

 

*********************************************************************************
Current Score (05/12/15): EQ:583; TU: 570; EX: 596 (FICO)
Starting Score (01/20/15): EQ:511 (FICO); TU: 521 (FAKO)
Contributor
Posts: 76
Registered: ‎03-26-2009
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Re: Bad credit auto loan online?

High Risk lenders....

 

I have used two in the past with no problems.  My credit score then was around 590, but then, I never had a late payment on any of my auto loans.  Most lenders will use a automobile scoring model when pulling credit (for a car).

 

I also dealt with Road Loans. I had no issues with them.  But I can tell you, since they are a higher risk lender, when you are late with a payment, like 2 days late, they will be aggressive.  Almost relentless.  If you read the bad info about them closely, GENERALLY speaking, most of those folks were late with their payments.  I too read about RoadLoans, but I could weed through those bashing posts and get the real idea.

 

The others I have dealt with personally were AmeriCredit, and American General Finance.  Those USED auto loans were roughly 16% with bad credit.  But my employment history and income also helped out a lot.

 

And having Repo's will make it very difficult even with a decent credit score.  IF you absolutely need a car for employment, like my past situation, you're gonna have to bite the big one (pay the high interest rates), then improve your credit score, make a year's worth of payments ON TIME, and you will likely be able to Re-Finance.  You will have to pay the high interest rates as the penalty for your credit.

 

I was there too...  but after a few months of actively clearing up my credit, and making payments on time, I re-fied' at 7%.  Not the best USED auto loan interest rate but my monthly payment went from $365/month to $270/month and will save me a significant amount of money.

 

Also regarding Re-Fi, the car usually can't be 'upside down'  (owing more than what the car is worth) as this is a bad deal for banks.

>>>EQ: 791__TU:757
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Frequent Contributor
Posts: 403
Registered: ‎04-08-2009
0

Re: Bad credit auto loan online?


ohiogal123456 wrote:
I have recently been approved through roadloans.com after doing some research I have discovered that they don't really have the greatest reputation. The loan was approved for $7500 with $2500 down. Interest rate of 24% I was wondering if anyone had any suggestions on what site I should actually go to try to get approved for an auto loan with bad credit. My credit is very poor, fico-529, I do have a cosigner for my loan, fico of around 560 but has 2 auto loans on their report from co-signing, 1 of the cars were repoed so that has been stopping us from being able to get approved through an actual dealership through their special financing. My next stop would be a buy here pay here but I would like to avoid that only due to the high interest rate and not so reliable cars. Any advice would be great! Thank you.

First of all welcome to the forum.......Now at 24% this must be a HIGH RISK lender as this interest rate is loan shark type. As it would take you 100 plus years to pay off this lender. My advice would be is too pay cash. Find a nice reasonable car and pay cash for it and work on your FICO score because it is kinda challenged right now but you don't need me to tell you that, but you did ask for advice so here it is. Good luck to you.

 

KingSmiley Wink

 

Equifax 787, TransUnion 793, Experian ? FAKO--> Who Cares
Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Bad credit auto loan online?

I had a roadloans auto loan and never an issue.  My apr was 10.9% though, 24% probably would have chased me away.

 

Basically you can apply through:

www.eloan.com  (I got my RoadLoan auto loan by app'ing here)

www.lendingtree.com

 

The benefit of eloan and lendingtree is they will offer your loan to multiple lenders and those lenders will contact you directly. 

 

www.drivetime.com

 

This lender is like a buy here pay here, but they have a national presence.  You may only buy their autos. 

 

you can go to local BUY HERE PAY HERE lots and see what you are offered.  Generally if you buy from drivetime or a local lot, your down payment will be less.  APR will be high though, possibly as high or higher than Roadloans.

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
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Frequent Contributor
Posts: 382
Registered: ‎05-15-2007
0

Re: Bad credit auto loan online?

Go to a buy here pay here auto lot.  Get a cheap vehicle and hopefully it will last until your credit is better.  One by my house asked for $500 down and $140 every two weeks for 1 year.  This is on a 2002 Chevy Venture.  65,000 miles.

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