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02-06-2013 07:49 AM
Need an advise. I am looking for auto loan. I want to lease or buy a $24000 car. I have about $2000 down. My FICO score is 696. Do you think it's possible to get a loan with not so high rate?
I don't have any late payments, collections, etc on my credit report, but I do have some credit cards, student loans and mortgage. Everything is paid on time and never late. Credit history lengh is about 5,5 years
What are my chances of getting that loan? Should I try or wait a little bit longer until my credit history is 7 years old?
02-06-2013 08:33 AM
I cannot say but I can tell you that my bank, USAA, pre-approved me for 25K and what they pulled at the time was 620 EQ from their system. 3 weeks later I pulled FICO EQ and I was at 663. my rate was 25K for 72 months at 4.59% or 60 months at 4.19%.
Good luck! Hopefully someone can better answer you!
02-06-2013 11:00 AM - edited 02-06-2013 11:02 AM
Your FICO score should easily qualify for the loan. The question will be whether you have the income to support your current obligations and the new loan. It is going to come down to Debt to Income ratio and if at all questionable what your previous credit history (especially auto loans) looks like. Your length of history is good but low income will negate the credit score factor.
02-06-2013 11:06 AM - edited 02-06-2013 11:07 AM
Thank you for reply. I consider myself having very good income ($4000/month take home after all deductions. I didn't have any previous auto loans, but I do have mortgage $520/months (4 years, never late). And credit cards (total payments $300/ month). Should I try and make bigger down payment?
Also, I got approved from Honda Financing and they sent me approved certificate, but the dealership want me to fill credit application on dealership website. Should I do it? Isn't it going to be another pull for my credit report and may lower my score?
02-07-2013 10:05 AM
I think if you simply go to the dealership and speak with the sales and finance people they will be falling all over themselves to earn your business. If you want to for your own peace of mind then you could apply for an auto loan with your regular bank or credit union so that they can give you a rate that you can compare to the dealers offer. Your mortgage will most likely offset the negative of not having a previous auto loan.
In most cases the manufacturer's finance arm has the ability to offer subsidized rates that will beat most financial institutions for good credit on a new car purchase. Whether you want to buy outright or lease is a decision you will have to make based on what is best for your personal situation. But I don't think you are going to need a significant down payment in either circumstance.
02-07-2013 10:29 AM - edited 02-07-2013 10:29 AM
Thank you very much! I appreciate every response. I got approve for 4.9% for the amount up to $28000!! I guess FICO score 696 is not that bad
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