Finally approved after many tries.....BUT

[kenduc]

I have horrible credit(557 TU). Well not horrible. Just very little credit and the little i have, is not in the greatest shape. Been trying to get approved for a loan for a while now. Tried local Credit Union, a few dealers. Applied to CapOne and got approved for $24k(weird). 

BUT @ 20.91%. 

Desparate need of a car and not sure what to do. 20.91% is ridiculously HIGH

[pizzadude]

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@kenduc wrote:

I have horrible credit(557 TU). Well not horrible. Just very little credit and the little i have, is not in the greatest shape. Been trying to get approved for a loan for a while now. Tried local Credit Union, a few dealers. Applied to CapOne and got approved for $24k(weird). 

@BUT @ 20.91%. 

Desparate need of a car and not sure what to do. 20.91% is ridiculously HIGH

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If you can't get approved with a better rate perhaps you can go with this for a few months and then refinance.

[kenduc]

@pizzadude  Thinking the samething but man, those few months gonna be a tough pill to swallow. How long before you can refiance?

[CAnNY]

Make sure you don't go in too upside down, so when you refinance in 6 or so months you don't have to come out of pocket much if at all. 

[pizzadude]

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@kenduc wrote:

@pizzadude  Thinking the samething but man, those few months gonna be a tough pill to swallow. How long before you can refiance?

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There no waiting period required.   You'd just need to refi as soon as someone offers you a decent interest rate.

[StartingOver10]

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@kenduc wrote:

I have horrible credit(557 TU). Well not horrible. Just very little credit and the little i have, is not in the greatest shape. Been trying to get approved for a loan for a while now. Tried local Credit Union, a few dealers. Applied to CapOne and got approved for $24k(weird). 

@BUT @ 20.91%. 

Desparate need of a car and not sure what to do. 20.91% is ridiculously HIGH

---

Have you considered just getting a beater until you can get your score to something that will get you better rates? If you go with financing a $24k auto loan over 48 months at 20.91% the payment will be $742.02.  If you go 60 mths the payment is $648.07.  Plus insurance. Plus repairs during the term.

It is very, very easy to be quite a bit upside down at these types of rates....

Spend the time getting your credit up to mid 600's so you can get a decent rate and not put youself in such a spot.

Don't put yourself in a bind with a high payment because you are then setting yourself up for failure.  Or, if not failure, a very stressful time.

[cappaccinodagreat]

I agree with the poster above me. I say get a cheap used car during your rough credit stretch. Wait out a big car purchase until you are comfortable with the terms. And even then, keep working on credit score and refinance in 6 months to a year.

[lajntx]

As with the other posters, if you CAN afford to pay cash - find someone to make cash payments on a beater for now, then that is the best option. Before going down the "legalised theft" route, if you have never been deliquent on a past car loan with Ford, you might try them at a larger dealership first. They probably could get you into a better new or newer certified used car at around half of that ( or better ) under one of the sub prime packages Ford Credit is pushing hard on right now.

[aubie1kenobie2]

Even of you can refinance after 6 months, will your baddies (assuming there are some) or whatever it is that is pulling your score down change significantly over the next 6 months? You don't want to get stuck with a loan with those rates if you cannot refinance.

[kenduc]

@aubie1kenobie2. I actually only have 1 baddies, thats getting resolved now & and a school loan i have NEVER made payments towards for 5yrs(Lol). Im working on both but thanks for the advice