02-21-2013 10:26 AM
Hello new friends,
I have had the luxury of owning my vehicle since 2005 and now it's time to buy a used car to replace it. It's a 1999 Suburban and it's loves gasoline. So I'm not really sad to see it go in exchange for something that gets 10 times the gas mileage. LOL.
The problem is my credit though. I'm in a lot better shape than I was 6 months ago, but my 637 FICO score isn't really giving me confidence based upon things I've read on the interwebz. And I haven't had an auto loan since about the mid-90s so I'm a little rusty.
I intend to talk to my credit union about a 48 month loan on used vehicle at the very least if I can qualify for the financing. I'd like to borrow about $8000 to shop with in addition to the $5500 cash I have. I don't have a large income, but I don't have any rent to pay, just a cable bill, trash service, and my auto insurance and phone bill, etc. I figured that 12% of my monthly income is about $168.00 and that feels like a very comfortable payment for me considering my insurance will probably go up now. I can easily pay $200 p month, but I'm conservative and like to have cash to spend to do fun stuff on the weekends and to squirrel away money into my savings accounts.
I use USAA's credit score service (FAKO) thing and my scores are currently EX: 675 EQ: 669 TU: 682
My utilization is below 10% on 3 cards ($1000 limit on each)
I have no mortgage or auto loan, though I do have a foreclosure in early 2009 that's hung up with BofA. (Consequently this is just one reason for my divorce and the last straw for me, so to speak.) And a bankruptcy (with my ex) from 2005.
I have a 30 day late because I got mixed up with AT&T. I was put on a contract with a new iPhone (that I had purchased outright and not as part of the $49 iPhone deal). When I switched to Boost mobile (better reception in my area) AT&T tried to collect their contract fee. I tried to fight them and it hurt my credit. I finally just gave up and settled with EOS CCA in exchange for them removing the negative from my credit report, but they didn't hold up their end of that deal. I can only fight so much, you know? I feel like as a consumer, sometimes you have no recourse. Sucks. That's my own stubborn fault for not coughing up the cash when AT&T wrongfully demanded it.
I've been on a good track with everything else since 2009 though, so I guess I just need some thoughts from the forum folks here on how I stand in my pursuit of an auto loan. I realize and accept that I could be a double digit interest rate payer and I'm ok with as long as it's not over 11%. If it's higher I'll just go buy a clunker and use cash. I'd rather buy something better though.
I'm really nervous about going to a bank these days. LOL. I hate the idea of a debt all things considered, but I've had my eye on the mini cooper s.
Thanks in advance for any feedback!
02-21-2013 01:43 PM
I think at 637 FICO you should get a decent rate. It could be double digits but could be single. Try a local credit union, if they offer a high rate, ask a few more and tell the first that you are getting better offers. Eventually they will come down if they want your money. CU's are easier to deal with than corporations and they look at more than just your FICO score so that helps.
So go talk to a local CU or apply online if you want and see what they have to offer. Since all of your aut loan inquiries within 14 days are considered as one, it won't hurt your credit score all that much.
02-21-2013 02:03 PM
Also consider MINI Financial on a used MINI at the dealer. They gave me a 1.9% loan on the wife's new MINI Countryman S a few months ago with a 660 score. You may not get the 1.9% but you might.
02-21-2013 02:58 PM
Thank you both for your responses. I guess I have no idea what I'm waiting for, because I can't fix my FICO score anymore than I have already. I just need to be patient with the buyer of my suburban. He's getting a good deal on it but needs a couple of weeks to come up with the cash. I could shop now I suppose, but I'd like that extra $1500 in my pocket first.
I feel better and more confident already! Thanks!
02-25-2013 06:53 AM
My FICO score went up to 659, so I applied with my credit union online yesterday as well as USAA. I was approved by USAA. The interest rate was 8.99% I'm just glad it's single digit! I've worked hard to come back.
I'm a happy camper this morning already, but my credit union is suppose to call me back. I guess I can rate shop reasonably so and even see what I qualify for with the Mini dealership. I've talked to a salesman about what I'm looking for and coincidently they have one coming in soon. :-P
I have about half a dozen other cars I can pick from in the coming weeks so everything is good in my 'hood. *snoopy happy dance*
03-04-2013 07:10 AM - edited 03-04-2013 07:11 AM
So the end result in this was an approval at 7.69% with Wells Fargo. The score the dealer pulled was Experian Auto : 629. They also pulled Transunion which was almost 680. I cannot remember the exact number and they didn't include the copy of that pull to my final sales paperwork. Bah. Ah well. The deal is done and I'm driving that Cooper S that I have had my eye on for a few months now. Weee!
I also have peace of mind in an extended dealership warranty.
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