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Obtaining financing with average credit, is it possible?

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Obtaining financing with average credit, is it possible?

Hi there! I am debating on whether or not to purchase a new car this year or this time next year since my car is about ready to need to be replaced!

 

My current credit score is 679. I have $1,000 saved away for a down payment, and the current trade-in value for my car is $8,000 minimum. I am hoping by this time next year my credit score will be around 700. By this time next year I will have $2,000 (or potentially more if needed) saved away for a down payment, and the trade-in value of my car will be $6,000 minimum. The cars I am looking at purchasing are $16,000 - $19,000. 

 

Do I have a chance of obtaining financing through my bank or the car dealership either this year or next? I have never purchased a car before (mine was given to me by my parents years ago), and I don't want to buy a new car if the financing will be terrible! 

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Re: Obtaining financing with average credit, is it possible?


workingwithwaste wrote:

Hi there! I am debating on whether or not to purchase a new car this year or this time next year since my car is about ready to need to be replaced!

 

My current credit score is 679. I have $1,000 saved away for a down payment, and the current trade-in value for my car is $8,000 minimum. I am hoping by this time next year my credit score will be around 700. By this time next year I will have $2,000 (or potentially more if needed) saved away for a down payment, and the trade-in value of my car will be $6,000 minimum. The cars I am looking at purchasing are $16,000 - $19,000. 

 

Do I have a chance of obtaining financing through my bank or the car dealership either this year or next? I have never purchased a car before (mine was given to me by my parents years ago), and I don't want to buy a new car if the financing will be terrible! 


It's totally possible, but your current car has a lot of life left in it if it's worth a minimum of $6k. Look up Dave Ramsey Drive Free Cars and watch the video. I wish I'd known about it at your age before I started a 15 year cycle of wasting money on car payments.

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Nov 2017: EQ 683/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
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