Posts: 91
Registered: ‎06-04-2012

Newbie to auto loans

I am planning on buying a new(er) car sometime in the next year and I have no idea what the best way is to obtaining an auto loan. I just had a few questions. I've been reading about the Auto Enchanced FICO scores... How does that apply to someone who has not had any previous auto loans? I had a little hiccup with two credit cards 1.5 years ago, will that affect me as much as if I were applying for a credit card? I had one 90-day late on one card and a hand full for 30- and 60-day lates on both between Feb and Sept 2011, all of which are paid off and closed. I have 3 cards and  never late. Will I need a co-signer?


Looking at a 20109- 2012 Chevy Tahoe at about 30k with 7-10k down. Income is $30k.

Current: EX(plus) 659, EQ(Lender pull) 661, TU(Lender Pull) 664, Credit Karma: 691, Credit Sesame: 693
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Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009

Re: Newbie to auto loans

With a down payment in the 25% range you should not require a co-signer. Your scores if they are current are not bad considering the credit hiccup's you have had. As to auto enhanced scores if you do not have an auto loan on your credit report then your auto enhanced score is likely going to be a few points lower than the score you are seeing from here. But not every bank uses auto enhanced scores.


Your best bet is to go to the institution (bank or CU) where you do your primary banking and see if you can get an auto loan preapproval through them. Then go to the dealership and see if their finance department can beat that rate. You will be able to finance but as a first time buyer I wouldn't hazard a guess at what rate. If you are buying brand new you may squeak in to some of the manufacturers subsidized interest rate promotions.

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Valued Contributor
Posts: 2,297
Registered: ‎08-25-2011

Re: Newbie to auto loans

I think your best bet would be to go to the dealer and let them do the loan.


That is a very very big loan for your income. But I think you will be able to get it with that down. One thing to keep in mind, the most you can finance with a 30k income is 22500. So you will need to use all of the 10k.

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