Need advice on a new auto loan with poor credit

[Anonymous]

Hi everyone. I am finally at that age where I can buy my dream truck, but I have a few issues I need help with .

My credit is roughly 590-600 with a bankruptcy on file. My wife's credit is 710 but the house is in her name so her debt to ratio is high. My bankruptcy was discharged 5 years ago. I have zero debt. My wife's debt to ratio is high only due to her income. We have zero debt other than our house. Only reason I filed chp 13 years ago was to save our old house which went upside down after the bubble. Prior to that my credit was 720. I am not looking for investment advise or pre-judgements, im looking for honest answers. Don't assume I have issues with debt please.

I have saved 45k for my truck which will cost in the market of 53-55k out the door. With the statements above is it possible to get financed in my name solely (assuming I can't use wife due to debt ratio)? Or should I just save a little longer and pay cash?

We are in a very good financial place, and I originally planned on paying cash. But, there are some serious deals right now that are hard to pass up, I'm just short about 10k.

I don't want a lessor truck, so please avoid going there. I just want to know real no bs truth before I go to a dealership with 45k cash just here no and feel embarrassed.

[StartingOver10]

It sounds like you can get approval based on the large down payment you have for the vehicle. The issue will be the interest rate.

IMO it would be best for you to go to a credit union for approval rather than trying with the dealership. I am certain the dealer finance office will shop your application out to many lenders and you will end up with a subprime lender (based on your score alone).  With a CU you can mitigate risk by having the large down payment and you don't have to end up with one of the subprime lenders.

But, before you do that, have you visited the rebuilding forum here?  I bet you can get your score up quickly before you purchase the truck of your dreams. Specifically take a look at this thread:  http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

Have you added any new cc's since your discharge 5 years ago? If not, that is why your score is low. You need revolving accounts to bring your score up - you don't need to use them except once in a while, but you do need open, active TL's. 

[Anonymous]

But won't a CU turn me away with my credit score?

[Anonymous]

Not neccessarily, depending upon the CU.   They don't only look at your scores but what is your relationship with the CU.  Some CU's won't finance you for a car until at least 12 months after BK while others as early as a month after BK.  It is all dependent upon what their guidelines regarding loans and BK are.  Can't hurt to ask, you maybe pleasantly surprised your CU can do a better deal then the car dealer.

[sccredit]

Why not app jointly so you get the benefit of her score and your income?

[Anonymous]

If you're putting 80% down on an expensive vehicle, just about anyone will finance you, as it's secured and if they repo they win a lot of money. 

I think you should hit the rebuilder forum to find out why your credit score is still so low. You'd be surprised how quickly you can raise up 100 points when you're that low, especially if you have the money to deal with collections or to get secured credit cards and the like. 

[lincar66]

I will make a 10k loan on a 55k truck all day lol.

Seriously this you should just walk into a credit union any underwriter will approve that as long as you fit guidelines.

In there eyes it is completely "risk free loan" 10k on a truck worth like 40k