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First auto loan but I have low income

New Member

First auto loan but I have low income

I live near Chicago so I usually just take public transit; however, the transit system has taken a nosedive recently and I really really need a car now to commute to work and school.


I wanted to know what my chances of getting an auto loan for a new car.

 

equifax  score (via myfico): 755

age: 26

rent: I moved back in with parent after I graduated from college, now in grad school. (will not paying rent hurt my chances)

income: gross 2240, net 1840 (which income do dealers look at)

down payment: 2k

car: $14k, Chevy spark 2013

available credit on credit cards: 13K

 

Debt:

student loan: 30k (deferment)

credit cards: 2500 (8, 5, 2 year old cards)

 

 

6 REPLIES
Member

Re: First auto loan but I have low income

Hi there,

 

First let me tell you, I too am WAS a first auto loan requesteee till this morning. Although, me or any other people on forum do not belong to any banks or CU. Therefore, we can only share our experience and will not be able to prejudge you on your qualification. (Hence I asked the same question LOL)

 

To my recent loan application, I have stated that I live with my family and do not pay rent. It is not a problem. 

 

Your payments to your CC are important. With no lates and below 30% of debt ratio is a A++

- What is the average length of time have you had those cards? Higher the more reliable you are to them.

 

As for income, they look at gross. I guess its basically off of how much of the loan you are requesting for. I.E.. If you are asking for a 40K plus... it can be pretty farfetched from the provided income above. I hope you have some kind of down payment to reduce your loan amount for better chances. (again, I do not work for banks or CU)

 

Is that a pre-owned vehicle? (I recommend)

 

I hope your not trying to use your credit card to buy the car. If you happened to be approve with a higher APR, you can always refinance later to a lower rate. But if you pay with your CC, you cannot.

 

With that said, I'd like to say I just got approved with a loan today. It was my first loan too.

 

Don't lose hope!

 

Highlighted
Regular Contributor

Re: First auto loan but I have low income

I have a very similar profile as you. Nearly the same score, income, and credit cards. The car I just bought was used for $15500 after taxes. I easily got approved for 2.9%. I did put down $5000, but I gave that number because I wanted to be far above water. I probably could have put down your $2000, but I didn't ask. I called my credit union first and the dealer matched.

New Visitor

Re: First auto loan but I have low income

I am trying to get a car loan and i have low income but with all that i have have very thin credit which makes it hard for me to buy a car or a house what do i have to do to get the things i want.

Moderator

Re: First auto loan but I have low income


Higginbottom wrote:

I am trying to get a car loan and i have low income but with all that i have have very thin credit which makes it hard for me to buy a car or a house what do i have to do to get the things i want.


Welcome to the forums!

 

Honestly, have a downpayment and possibly be looking to buy a cheap car.  Also look around the forums regarding building credit (get two credit cards that report, consider a credit building installment loan, etc). 

 

There's some short-cuts which may be available (getting added as an authorized user to an established tradeline), but mostly building a credit report is opening some accounts, never missing nor being short on a payment, and letting time pass.  Fortunately for people who don't have much credit history, that time isn't very long to be auto loan qualified, and depending on what's in your report now, could be mortgage qualified very quickly as well.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Moderator

Re: First auto loan but I have low income


creditgirl026 wrote:

I live near Chicago so I usually just take public transit; however, the transit system has taken a nosedive recently and I really really need a car now to commute to work and school.


I wanted to know what my chances of getting an auto loan for a new car.

 

equifax  score (via myfico): 755

age: 26

rent: I moved back in with parent after I graduated from college, now in grad school. (will not paying rent hurt my chances)

income: gross 2240, net 1840 (which income do dealers look at)

down payment: 2k

car: $14k, Chevy spark 2013

available credit on credit cards: 13K

 

Debt:

student loan: 30k (deferment)

credit cards: 2500 (8, 5, 2 year old cards)

 

 


Auto loans are the easiest of all loan products to qualify for.  The only question in your being able to get a "good" new car loan is the downpayment as another poster suggests; however, I really doubt you're going to have much issue assuming that's monthly income you posted.   Fact is, someone will be able to finance you, dealer nearly  assuredly can but other lenders will take a shot on you as well.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Frequent Contributor

Re: First auto loan but I have low income

You shouldn't have any problem. I got a new car earlier in the year and I bring in around $1400/month after taxes. My credit history is really good and I've had a previous auto loan that was paid in full on my reports so i'm sure that played a role in it. They didn't require me to make a down payment. Car was about $19K OTD.