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Contributor
Posts: 162
Registered: ‎04-15-2011
0

My chances

Hello , thank you in advance for reading. 

I really need a car and I may seem as if I'm a bit spoiled but I want something that's nice to look at... I was seaching for 09-12 cars, what are my chances for an auto loan approval? I know what I can afford to pay on a car monthly (300) plus insurance.. I cant have a co-signer as everyone close to me have very, very poor credit scores.. My credit score are as followed TU:720 EQ:660 and EX:702 with just two years of history and my sig shows the number of cards I have. My annual income (gross) is 21000 I still go to school and have a utl of just 7%. With that low amount of income and short credit history, would I qualify for a low apr/good auto loan? Also I forgot to mention, I have 4000 to put down and can use my credit card if dealers even accept that.. If anyone can help that'll be awesome, no Toyota please, I know they're dependable... Just not my thing. Be harsh if you have to.. Thank you. Absolutely no negatives on my report, EQ is low due to a joint account which has been settled.

My wallet : Amex Zync NPSL , Discover More $3500, BankAmericard Cash Rewards $1000, Walmart Discover $1400, Chase Freedom $1000, Capital one Platinum $1000, Macy's Store card $100, Amazon Store card $1400, Southwest rapid rewards $5000, Marriot Visa $5000. Barclay Apple $1200
Frequent Contributor
Posts: 470
Registered: ‎08-14-2012
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Re: My chances

I think if you just consider your score/history you would have a decent chance of approval on your own. However, they might be a bit concerned with your income especially being that it is gross income and not net income as your net income would be less. If you dont mind sharing, what is the source of your income? BUT, since you have a decent down payment (almost a third of the purchase price), that will weigh heavily in your favor as you would be financing less.

 

Keep in mind though to think about your budget after you graduate and what your student loans (if you have them) will be per month to make sure you will still be able to afford the car after you graduate. 

Who do you bank with? I always suggest having a back up financing plan (that you are satisfied with) in case you are not satisfied with what a dealer will offer you. If the bank does not approve you without a cosigner, there is a chance that a dealer may not as well.

Most dealers accept CC as well (usually up to 5000).

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Contributor
Posts: 162
Registered: ‎04-15-2011
0

Re: My chances

Thanks for replying! I work at FedEx, I have no school loans. I make around 1600 to 1700 a month (after taxes) I was considering leasing a Kia optima or a maxima.. 

My wallet : Amex Zync NPSL , Discover More $3500, BankAmericard Cash Rewards $1000, Walmart Discover $1400, Chase Freedom $1000, Capital one Platinum $1000, Macy's Store card $100, Amazon Store card $1400, Southwest rapid rewards $5000, Marriot Visa $5000. Barclay Apple $1200
Frequent Contributor
Posts: 470
Registered: ‎08-14-2012
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Re: My chances

Ahhh ok I thought you were looking to purchase. Leasing tends to be income sensitive because at the end of the lease you could possibly owe additional money and they would want you to be able to pay that.

I know in my area Nissan currently has a 269/mo lease special with 3,379 intial.  Kia has a 199/mo with 2,399 initial on a 2013 Optima.  They both seem to be in your budget so I would say test drive them and see what you like best. Then, see if the one you like best can offer you anything without a co-signer.

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Frequent Contributor
Posts: 470
Registered: ‎08-14-2012
0

Re: My chances

Oh yeah, and FYI, I asked your income source bc that is something a lender will look at to see if it is stable. Fedex would be considered stable.

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Moderator
Posts: 13,761
Registered: ‎04-15-2011
0

Re: My chances

Personally I think your chances are pretty good!



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Contributor
Posts: 162
Registered: ‎04-15-2011
0

Re: My chances

Awesome, I'm going in after my discover reports a zero balance.. So if I make 21000 and want to lease a car that's 20000 would it be easier getting approved for Since the monthly payment would be lower? Thanks 

My wallet : Amex Zync NPSL , Discover More $3500, BankAmericard Cash Rewards $1000, Walmart Discover $1400, Chase Freedom $1000, Capital one Platinum $1000, Macy's Store card $100, Amazon Store card $1400, Southwest rapid rewards $5000, Marriot Visa $5000. Barclay Apple $1200
Valued Member
Posts: 47
Registered: ‎03-08-2012
0

Re: My chances


Jimmy9224 wrote:

Hello , thank you in advance for reading. 

I really need a car and I may seem as if I'm a bit spoiled but I want something that's nice to look at... I was seaching for 09-12 cars, what are my chances for an auto loan approval? I know what I can afford to pay on a car monthly (300) plus insurance.. I cant have a co-signer as everyone close to me have very, very poor credit scores.. My credit score are as followed TU:720 EQ:660 and EX:702 with just two years of history and my sig shows the number of cards I have. My annual income (gross) is 21000 I still go to school and have a utl of just 7%. With that low amount of income and short credit history, would I qualify for a low apr/good auto loan? Also I forgot to mention, I have 4000 to put down and can use my credit card if dealers even accept that.. If anyone can help that'll be awesome, no Toyota please, I know they're dependable... Just not my thing. Be harsh if you have to.. Thank you. Absolutely no negatives on my report, EQ is low due to a joint account which has been settled.


Here's what I'm thinking...you may want to consider not going over $201.75 for a lease payment.  Consider Leasetrader.com or swapalease.com because with your credit, you can assume someone else's lease without having to put any money out.  Keep that $4k in an emergency fund.  Additionally, you can find a lease on the websites above for any budget.  The reason I say no more than 201.75 is because you make 8x's that amount.  It's a very cushy place to be in my opinion.  Leasing companies require that you carry (in most cases) insurance limits that exceed your state minimums.  For example, you'll probably be required to carry 100k/300k/100k on your lease which will drive up your monthly premiums, factor in GAP insurance and your payments may be a little inflated.  Play it safe and smart, take oversomeone else's lease.  The only fee you may have is the transfer fee and probably transport if the person doesn't live in your state.
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