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Need Advice on a Car Loan

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Anonymous
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Need Advice on a Car Loan

Hi. I'm a new member to this and I need some help. I am rebuilding my credit and paid off judgements and all other debt paid off. So I got a credit card with a 2000 limit (Cap One) I've had it for exactly two years and made on time payments. Now I want to got get a auto loan for about 25000. I want to put about 5000 down. My FICO scores average 775 between the three bureaus.
I want to know how good are my chances of a favorable loan rate or do I need another credit card to make my credit look better?

Thanks for your help.
Message 1 of 14
13 REPLIES 13
TheGardner
Valued Contributor

Re: Need Advice on a Car Loan

You should be approved for any promotional financing available, so that's good. The $5,000 down don't be so quick with.. If you get 0-2% financing that 5k could be put to better use elsewhere to make you money (unless you are looking for a lower payment) .

In other words, go for it you are good to go! Good luck
If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 2 of 14
TheGardner
Valued Contributor

Re: Need Advice on a Car Loan

No mention, have you had an auto loan in the past on your reports? Just skimmed over your post, that's a high fico score for having judgements. That is Fico scores right? From here?

Having 3 cards is optimal for scoring but your scores may drop depending on AAOA and how thick your profile is so keep that in mind.

If you have positive auto loan history you are a shoe in.
If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 3 of 14
Anonymous
Not applicable

Re: Need Advice on a Car Loan

I've never financed a auto. I've always bought used cars with cash. My judgements were cleared about four years ago. (About 3500 worth - nothing major), but the they do not show on my credit report. So any past debts is not there. Those are my FICO score average from the three reporting agencies. I have been diligent with my payments and do not owe anyone. I thought that I would have to get more credit before going for a car.
Message 4 of 14
TheGardner
Valued Contributor

Re: Need Advice on a Car Loan

I think you have a good shot at special financing. Maybe find a CU as a backup plan just in case they try to screw you over.
If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 5 of 14
Anonymous
Not applicable

Re: Need Advice on a Car Loan

I thought about using a credit union. But I thought about financing thru my bank or thru Capital One (my credit card holder) I just wanted to get an idea of if I would get approved or do I need more credit? Would that mean getting another card and waiting for another year to build that credit lines
Message 6 of 14
TheGardner
Valued Contributor

Re: Need Advice on a Car Loan

It's always a good idea to get a couple more cards to round out/ thicken your credit profile. I think your best rates will come from dealer special financing or a CU. Sometimes a dealer will get you a better rate from your bank then you can get from them directly. The biggest problem you have is no previous auto experience this can result in a higher rate. If you use the 5k down payment that can help lower it a bit as you have skins in the game and the bank will be close to used car price on the new car so less risk for them in case of default.

 

Maybe get a CU preapproval before going to the dealership and make them beat it (this will also tell you what to expect if the CU quotes you a high or low APR). 

 

Keep us posted on how it turns out!

If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 7 of 14
Anonymous
Not applicable

Re: Need Advice on a Car Loan

I will probably get another card from my bank (Chase). They have been sending me pre-offers. I am thinking about joining a credit union (AA Credit Union) as well. I'm not in a rush to buy a new car, but I wanted to get a sense of what would I need to go thru the process since I never done this before. I didn't want a lot of cards and more debt, but I'll take your suggestion of getting another card.
Message 8 of 14
fury1995
Valued Contributor

Re: Need Advice on a Car Loan

Not an expert on credit but I have some real inside knowledge on applying for auto loans. Based on your situation, your are more than likely to to be approved in a lower single digit apr. The only piece of the puzzle missing is your income, that will either make or break from what I see.

August 28, 2023 FICO 8

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August 28, 2023 FICO Auto 8

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Message 9 of 14
Anonymous
Not applicable

Re: Need Advice on a Car Loan

My present income is about 34000 yearly. That is just base rate. Not including OT and other increases.
Slated to get a raise next year to about 35,000 base.

Message 10 of 14
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