BrickbyBrick Couldnt get a card, but now time for a CAR Advice Please

[Brickbybrick]

Heyo guys, its been the best time of my life since I've embarked on my credit repair journey. It's still been about 6 months since I started and have gone from 580 to 670 on EXP 08. My other two scores suck and around 630-650. Anyway I am looking to purchase a car. I got a preapproval from Carvana and Capital One but the issue is for the car I want they are giving it to me at a whopping 10ish% which bums me out. I heard a lot of good things about DCU and so put in an application for an auto loan yesterday. I am hoping to hear something by tomorrow so that I can go get my car or not . I am a bundle of nerves because I love this car and can afford the payment.

If DCU fails I am planning on accepting the 10% APR and refinancing down the line. Paying more than the payment when I can. What do you guys think?

[pipeguy]

Although DCU does use Fico 8 (they use an older version that usually comes in with lower scores) I'd say you have a pretty good chance of beating that 10% APR througfh DCU which tends to be very accepting for marginal approvals (meaning under 700) - either way, even if they won't accept you now, think of doing a refi in 6 months through DCU.

Full disclosure: I have 2 car loans through DCU one at 1.49% and another at 1.99% - I'm a big fan of DCU.  

[Brickbybrick]

So get the best rate I can and refinance in 6 months?

[Anonymous]

Yes.

I don't know the details of your credit history, of course, but you are in that kind of hazy middle range between subprime (15-20+%) car loans and tier 1 (0-3%) car loans, and so a 10% rate doesn't seem shocking, if your "healthy" credit history really is only about 6 months old...

If you want the car now, do the best you can for the moment, make as many extra principal payments as you possibly can on top of the regular payments (and maintaining good payments on your credit cards), and look to refi in 6 months after all of your new credit cards have aged past their first birthdays.

[Brickbybrick]

Thank you!