Credit Card Center Advertiser Disclosure†
08-08-2010 05:10 PM - edited 08-08-2010 09:34 PM
I was just approved yesterday for a car loan from Regional Acceptance Corporation. Even though the loan officer said he had approval, I had to sign one of those "Subject to Credit Approval" notes that says I'll bring the car back immediately if the loan doesn't go through. So I left there nervous that Regional Acceptance (the lender) wouldn't go through with the loan. Then I came home and did some research on Regional Acceptance Corporation and now I'm more nervous that they WILL go through with the loan.
I'm hoping some of you may have experience with them that you can share with me.
Since this is my first post here (I've been reading you guys for the last month or so and think you're brilliant), I'll give you a little backstory:
My credit scores are awful because of a lot of student loan debt and a few medical bills that were turned over when I had cancer a couple of years ago. I've been working on rehabilitating my student loans for the last couple of years. One set is finished with rehabilitation and has been purchased by a new lender. Those loans are now in deferrment while I rehabilitate another set of student loans. I'll be finished rehabilitating those in January. Then they should be picked up by the lender that picked up the first rehabilitated set.
Meanwhile my credit scores reek (Exp: 570, Transunion:498, Equifax: 528). I was driving a 1999 Taurus (bought with cash several years ago) and planned to drive it for another couple of years until my scores came up. Unfortunately my car died a few weeks ago and I had to move that time table way up.
I've been looking for a car for the last few weeks and getting turned down over and over and over. It was pretty demoralizing. I had pretty much decided to just find find an older car i could buy outright for $2k-$3k and try to buy a newer car in a year or so. Then I tried one more dealership this weekend. They're a reputable new and used car dealer in the area and they assured me they could get me financed.
I ended up getting a 2009 Toyota Matrix for $13,500 at 19% interest. My downpayment was $3,000 and my payments will be $339 for 72 months. A LOT of money, I know. But I figured with good maintenance I should be able to drive a Toyota forever and that I'd just bite the bullet on the interest and take the opportunity to build my credit. Plus in a year or so I might be able to refinance and get out from under a lot of that interest. So I went for it.
Then he pulled out the "Subject to Credit Approval" note and all those warnings I've read about interest rates jumping up 2 days later flashed in my head. So I went home from the dealership worried that tomorrow I'll get a call that either rescinds the loan offer or tells me my interest will really be 24%.
Today I Googled Regional Acceptance Corp and now I'm just plain scared. The horror stories online are terrifying. People talk about having their interest rates arbitrarily raised, payments not getting credited, being harassed all hours of the day and night, family and friends getting harassing calls, paying for 3-4 years and finding out they owe almost as much as they did at the start of the loan...
Now I'm scared to death I've made a horrible mistake and that I'll end up making my credit even worse.
I would really appreciate any insight you guys can offer. I don't know if I should call in the morning and try to get out of the deal, or if all the complaints are just coming from people with late payments who are suprised that a finance company wants its money.
Thanks in advance for any advice you can offer.
08-08-2010 11:45 PM
I had a loan with RAC from 2003 to 2009. It was on a 2003 Chrysler T&C for $606.41/mo for 72 months at 19.9% APR.
I signed on with them after applying via the dealer (I learned one this via these forums: never apply with the dealer). My credit was in the tank in the 500s and only had one positive TL at the time (another car loan via Americredit...at 13%). I knew nothing about credit and personal finance back then and signed on figuring I could always pay it off early. The dealer denied me for other loans and this stuck with the condition that I fork out $5k or $6k as a down payment, which I was more than happy to do (I did know how interest worked). I paid on the loan, and went through a couple of rough spots (e.g. job loss), and despite deferring a few payments, I paid it off a few months early not even thinking about refinancing during that time. Despite lackluster CSRs, and a lack of a good payment system (then), I will give them kudos in that I was late several times, sometimes 60+ days, and they never maked my CR late.
I had to sign the same doc as you did. The dealer told me it was their requirement so I never questioned it.
When DW and I looked for our car (we still have it at 150k miles), we needed one due to an expanding family. At the time I felt it was an urgency to buy a car. That's how I felt but it wasn't the case. If I had it to do over again, I would continue to drive our little Saturn and improve scores and save up for a larger down payment before making a new purchase. We blew off thousands and thousands in interest.
08-09-2010 03:04 PM
Thanks. That makes me feel a little better.
Of course, I'm still waiting to hear from either the dealership or RAC that everything has been approved. Any idea how long that takes? It's hard to feel like the car is mine until I hear something.
08-10-2010 09:39 AM
I don't know. It's been so long. I do remember not wanting to leave the dealership, or they wouldn't let me leave the dealership, until I heard the word "approved", despite signing that doc. I probably would have been nervous if I wrecked it, dinged it, etc.
08-25-2010 11:47 AM
I also had a 1999 Ford Taurus, that i did not think would last me much longer. I did not have the money for repairs. I decided to see if i could get a new vehicle. My credit scores at the time was not good, they were in the high 500's. I tried to get a 2009 Ford Fusion, i also signed the Subject to Credit Approval. I was extremely nervous all the time i had the car. They tried several finance companies. I would say about a week later, they got an approval from Regional Acceptance Corp. My interest rate was 16%, monthly payments 535.00, for 60 months. Ironically i was able to get the car with no down payment. At the time Ford was offering a 1500.00 rebate, but the dealer was still trying to get a down payment from me. I told them i did not have any money for a down payment, but RAC still approved me. I never had a problem with them, i had heard about their payment problems from other customers. Everything was credited like it should be . After about a year, i decided to refinance with Wells Fargo. Their company was much more diverse than RAC. Credit cards, home loans etc. But my experience with them was good. They also was the only finance company that would approve me and gave me a chance, when no one else would.
08-25-2010 05:51 PM
I had a loan with RAC. Honestly, I had no issues with them. I paid on time, they never bugged me. You can schedule your payments online -- as long as you have a payment scheduled, you never get a call. I had to talk to the CSR's a couple times, and they were helpful. Dont believe everything you read. You can always refinance down the road.
04-04-2013 08:29 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.