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Really bad credit!!!! FICO really low! wanting auto loan with carmax

New Member

Really bad credit!!!! FICO really low! wanting auto loan with carmax

I live in dayton ohio and im working to repair my credit.......I dont want to say but my FICO is really Low!!!! I pulled my transunion credit report and its 525 so im sure the others are in the 500's........i cosigned with my husband last year for his car loan and we were approved thru credit acceptance with 1,400.00 down at 18% @290.00 a month on a 14k loan..........my husband has been ontime never late for past year and i am now trying to get a loan for about 14k with 3,000.00 down......im really looking at carmax my husband will cosign with me again( he has no reall credit really this car loan is his first major bill).......has anyone else tried to finance thru carmax with really bad credit? HELP! 

Message 1 of 17
16 REPLIES
Moderator

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax


aprilbrown77 wrote:

I live in dayton ohio and im working to repair my credit.......I dont want to say but my FICO is really Low!!!! I pulled my transunion credit report and its 525 so im sure the others are in the 500's........i cosigned with my husband last year for his car loan and we were approved thru credit acceptance with 1,400.00 down at 18% @290.00 a month on a 14k loan..........my husband has been ontime never late for past year and i am now trying to get a loan for about 14k with 3,000.00 down......im really looking at carmax my husband will cosign with me again( he has no reall credit really this car loan is his first major bill).......has anyone else tried to finance thru carmax with really bad credit? HELP! 


April, welcome to the forums. Smiley Happy

Why don't you take a quick look at the credit rebuilding forum here first, there is a ton of info that can help you bring up your score so when you choose to finance you get a much better loan than the terms you have currently on your husband's car.

 

Some people get their scores up right away (30 days to 3 months) others take longer. It depends upon what is holding your score back.

 

It's better to not put yourself into a difficult high priced loan when you can take just a bit to bring up your score and end up with a much better loan.

 

BTW, Carmax specializes in bad credit loans. You would be better off taking the $3k you have and buying a beater if you need a car right away. That way you can work on your credit and you and your husband can pay off the current high interest loan you have already before you take on another payment. 

 

One idea you could do right away, if your husband has paid on time since he got the loan, have him join a credit union to refinance the loan into his name only at a better interest rate? It will save you both on the monthly payment. And, it might be possible for you then to get financed to purchase a vehicle with CU financing.

 

Message 2 of 17
Epic Contributor

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax


aprilbrown77 wrote:

I live in dayton ohio and im working to repair my credit.......I dont want to say but my FICO is really Low!!!! I pulled my transunion credit report and its 525 so im sure the others are in the 500's........i cosigned with my husband last year for his car loan and we were approved thru credit acceptance with 1,400.00 down at 18% @290.00 a month on a 14k loan..........my husband has been ontime never late for past year and i am now trying to get a loan for about 14k with 3,000.00 down......im really looking at carmax my husband will cosign with me again( he has no reall credit really this car loan is his first major bill).......has anyone else tried to finance thru carmax with really bad credit? HELP! 


1. I agree 110% with other poster... if husband has no other credit but this on time auto loan now he might have good credit!! Join a Credit Union and see about refinancing this car.

2. Might be surprised if he finds credit union to refi this car that they might be very willing to give a 2nd loan for a 2nd car if income supports

3. otherwise carmax should be pretty easy for approval... they will send it through Santander at a 18-25% interest rate most likely and you can get it... IF YOU MUST do it right now! otherwise take the day or two and get in touch with some credit unions.... you can go to suze ormans website and she has a great search tool to find credit unions in your area that you can join without usually employment or government type criteria

Message 3 of 17
Valued Contributor

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax


StartingOver10 wrote:

It's better to not put yourself into a difficult high priced loan when you can take just a bit to bring up your score and end up with a much better loan.


 +1

 

If you put 1,400 down and financed 12,600 at 18%, 290 per month is a 72 month loan.  In other words, you will still owe almost ten grand after two years of paying.  So, there's no way you will ever be able to trade this car in until it's paid for.  You'll have to drive that car until the year 2020.  That's a risk.

 

 A 1.5% rate would get you the same priced car at 270 per month for just 4 years.  

Rate matters.  If your husband's report is clean, he needs to refi with penfed or another credit union.

 

You both need to spend some time reading up and looking at your reports.  With good credit you can literally get a car twice as expensive for the same payment you spend with poor credit.  

It's worth being patient and driving something cheaper while you work out the credit stuff.

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Message 4 of 17
Epic Contributor

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax


aprilbrown77 wrote:

I live in dayton ohio and im working to repair my credit.......I dont want to say but my FICO is really Low!!!! I pulled my transunion credit report and its 525 so im sure the others are in the 500's........i cosigned with my husband last year for his car loan and we were approved thru credit acceptance with 1,400.00 down at 18% @290.00 a month on a 14k loan..........my husband has been ontime never late for past year and i am now trying to get a loan for about 14k with 3,000.00 down......im really looking at carmax my husband will cosign with me again( he has no reall credit really this car loan is his first major bill).......has anyone else tried to finance thru carmax with really bad credit? HELP! 


what have you done with your credit since signing for his loan?

what baddies are on it?

Message 5 of 17
New Member

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax

I'm not sure how your adding the loan up but 290.00 for 45 months doesn't leave us paying till 2020 we got the car last year but yes I agree the interest is high and yes my husband plans on trading the car and possibly refinance thru his bank universal one someone this year. I on the other hand had previously during income tax time wasted money on buckets (cars that are not reliable) and I need a better car my current 2002 Buick has a slipping transmission and with my new position at work I need something safe to drive so this car decision is a must! Smiley Sad or I would wait............
Message 6 of 17
New Member

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax

I have never had any credit cards, no garnishment, no bankruptcy........I screwed up about 5 years ago after losing my job so I owe Verizon, medical bills, a payday loan, flash light tickets, 2 student loans and I'm ashamed to say wright part credit union for a loan of 850.36 which I'm on a active repayment plan with collections since October for 25.00 @month I also need to work on budgeting better.........so yea I'm stuck with carmax if I get approved I'll try to hurry up and pay off Wright patt credit union and maybe I can try to refinance with them later Smiley Sad
Message 7 of 17
New Member

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax

Thanks for all your comments this was very helpful!!!! Having bad credit makes me feel awful but it could be worse so I try to count my blessings for what I do have!
Message 8 of 17
Valued Contributor

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax


aprilbrown77 wrote:
I'm not sure how your adding the loan up but 290.00 for 45 months doesn't leave us paying till 2020 we got the car last year but yes I agree the interest is high and yes my husband plans on trading the car and possibly refinance thru his bank universal one someone this year. I on the other hand had previously during income tax time wasted money on buckets (cars that are not reliable) and I need a better car my current 2002 Buick has a slipping transmission and with my new position at work I need something safe to drive so this car decision is a must! Smiley Sad or I would wait............

If you borrowed 12,600 at 18 percent but your payment is only 290, you have a 6 year loan.  That's how it amortizes out.  Check out this Amortization Calculator if you want.

 

You should definitely see what your husband will qualify for now with better credit.

 

Good luck!

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Message 9 of 17
New Member

Re: Really bad credit!!!! FICO really low! wanting auto loan with carmax

No it's just 45 months I just checked his last payment is 11/2016 and we got the car 2/2013 @290.65 a month........thanks! For your help
Message 10 of 17