cancel
Showing results for 
Search instead for 
Did you mean: 

Do I qualify?

tag
Anonymous
Not applicable

Do I qualify?

After 2 years and many repairs, my car is on its way out. I'm hoping to get into a new(ish) car but honestly have no idea if I will qualify for anything.

 

 

Credit Score:647 Trans Union New Model
Income: $2,800mo
Lenght of Employment: 4y1mo
Previous Loan Experience: N/A
Debt-to-Income (DTI): ~%10
Year of Car: N/A
Miles: N/A
Purchase/Refinance: Purchase
Requested loan term (XX Months): 48-60 months depending on amount financed
Down payment amount: $2500-$3,000
Co-borrower/Co-Signer: Unavailable

Time at residence: 24 years

Rent: $0
Other: I have a charge off from 6 years ago for $900(I wasn't the brightest 18 year old), the only line of credit I currently have is a $200 Secure credit card that I've had for about 6 months. Utilization a is always under 50% and always payed off in full.

 

I'm wondering if I will even be approved for any type of loan seeing as how my credit history is bleak. Any help is appreciated.

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Do I qualify?

Why wouldn't you? You may have 5% to 10% rates but important thing to remember is will you afford your payment 

Message 2 of 8
Anonymous
Not applicable

Re: Do I qualify?

Thanks for the quick reply! I  guess I'm just afraid I will be turned down due to having next to no credit history. The two I mentioned are literally the only two I've ever had. I completely agree with your suggestion to keep my payment within my means. Now that I'm a bit older I realize how important credit is.

 

im going to try a local credit union in the morning. Any tips on what I should bring besides pay stubs?

Message 3 of 8
Anonymous
Not applicable

Re: Do I qualify?


@Anonymous wrote:

Thanks for the quick reply! I  guess I'm just afraid I will be turned down due to having next to no credit history. The two I mentioned are literally the only two I've ever had. I completely agree with your suggestion to keep my payment within my means. Now that I'm a bit older I realize how important credit is.

 

im going to try a local credit union in the morning. Any tips on what I should bring besides pay stubs?


If you have never had an auto loan, it may require a co-signer but go in in the morning with your paystub and see what they say. In addtion, bring self identifying documents such as ID, an old utility bill etc..

 

Lastly, read the stickies here before you go car shopping.... By stickies I mean this on the top half section here...

 

Unknown.png

Message 4 of 8
Dj4Money
Established Contributor

Re: Do I qualify?

  WIth no Auto Loan history you will likely have to go to specialized lenders.

 

  I will have to request a sticky so I don't keep repeating myself. A favorite non-prime lender around here is Capital One. Go to their website and apply (1 INQ). This will typically give you an idea as to what most mainline banks will do.

 
  If your application is accepted, it will likely be $20-$25K at 15% or less for up to 72 months. Should you take this? Of course not, until you submit a purchase order (PO) the details of your loan won't be disclosed. To accept all you have to do is sign the documents and submit them back.

 

 But this is a opportunity for two things -

 

 Shop Your Loan via the dealer 

 

 Focus on getting the best price possible.

 

 If your denied, go directly to known sub-prime/non-prime lenders -

 

  Santander/Road Loans, Auto Credit Express, Credit Acceptance Corp, Westlake Finacial and CPS.

 

 All of these lenders will help people with thin credit files. Google the names and the websites will come up. With all the lenders they work with a network of dealers. If you want a list of dealers they work with, email or call each of them and they will email you a list based on your zip code and address.

 

 There are others, but most of these have modest requirements. You can make less than $2,000 a month with all of them and most of them will lend out to 25% of your gross income. 

 

 This allows you to purchase a wide range of vehicles to cover your needs/wants.

 

  Credit Acceptance requires a small down payment (sounds like a fee to me) of $500 and they will accept almost all/any credit in return. Most others won't require a down, even Exiter though they seem to be the worse.

 

 One word of caution with any of these lenders. The string is pulled tight, meaning you can not be even be ONE day late on your loan. The phone calls will start instantly and in some cases they will immediately report your payment as being 30 days late. If you can't seem to pay your bills on time, you should either get into the habit of paying on-time or get your score higher/fix your report so you can use prime lenders who are typically more lenient.

 

 The good news you can usually refi out of these in four-six months, sometimes sooner. Be sure to read all the fine print to see if there's a early payoff penalty.

 

  This is not nearly as hard as people make it sound, all you have to do is find the lenders that will help you.

 

 Once you have proven to be credit worthy, you can refinance. 

 

 

 

 

 

 

 

 

Message 5 of 8
Anonymous
Not applicable

Re: Do I qualify?

I went to the CU last Friday and filled out an app requesting $15k. Got a call this afternoon(one week later) apologizing for the long delay, they are a small CU and it was a busy week. Now for the good news.

I was approved for 15k for 60mo at 3.74% with no co-signer! I almost dropped my phone. I've been waiting a week for a reply expecting to get turned down, or offered an outrageous APR.

Thanks everyone for your input and tips!!!
Message 6 of 8
Anonymous
Not applicable

Re: Do I qualify?


@Anonymous wrote:
I went to the CU last Friday and filled out an app requesting $15k. Got a call this afternoon(one week later) apologizing for the long delay, they are a small CU and it was a busy week. Now for the good news.

I was approved for 15k for 60mo at 3.74% with no co-signer! I almost dropped my phone. I've been waiting a week for a reply expecting to get turned down, or offered an outrageous APR.

Thanks everyone for your input and tips!!!

Congrats!!  Enjoy the new ride and post pics when you have time so that we can admire it tooSmiley Happy

Message 7 of 8
Anonymous
Not applicable

Re: Do I qualify?

CongratzSmiley Happy
Try to get it beat
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.