I am still kind of in shock but yeah I was approved for my first car loan a few days ago.
I have been working weekly on getting my credit improved. I even went and talked to the bank and they suggested I apply for one of their credit cards which I did.
A little back story.
I lost my house to foreclosure back in 2008. I cosigned on a student loan for my ex back in 2007 and that has been in default since 2009.
I have never had any student loans or any type of car loan in my name.
I have only ever had 1 credit card in my name.
Around 2009 my credit score was in the high 400's. In 2010 I tried for a car loan but was denied, even with a cosigner. Luckily my father was able to take out the loan and I payed on it. In 2013 my scores jumped to around 650 so I attempted to get a mortgage but was denied because of the student loan that is in default. My bank encouraged me to get a 2nd credit card and to charge just gas on it and come back in 6 months. They also needed student loan to be taken car of.
I was so nervous going into the dealership that I would once again be sent home with my tail between my legs.
What surprised me is they didn't want anything from me but a drivers license and insurance card. When I was car shopping 2 other dealers wanted paystubs, bank statements, and a utility bill. Maybe it was just the other dealers trying to shoe me away.
The sales manager comes over and says he needs to talk to me about something in the other room. My heart starts beating faster. All he wanted to do was confirm my place of work and address then go over some extended warranty stuff. I ended up doing a 6 year loan at 5.1%.
They followed their word and kept my payment under the 300 dollar mark. I did have 3000 as a downpayment I might add. I plan on paying at least 100 dollars a month extra on the principle to shorten the length of the loan and the interest paid.
The car I purchased was a gray 2011 Honda Accord with 30k miles
Lesson learned. A car loan is much easier to obtain then a home loan.
