Single Mom looking for a second chance!

[luvmyzoebarry]

Hello,

I've been reading some of the messages here, and am so excited to learn from you all!

I am wondering what my chances are of getting a new car loan or lease.  My story......

Was married, had credit in both our names and my own.  Divorced and then had to file bankruptcy in 2005 because of debts and ex wouldn't settle with me. Discharged in 2/06.  In May 2006, purchased a 2006 Toyota Solara through Captial One Auto Finance at 11%.  Made on time payments for two years, then lost my job in 2008, got behind on payments and car was reposessed.  I offered to pay the back payments to get current and keep the car, but they refused.  Car was sold and balance was charged off.

Fast forward to now, I have a Capital One credit card with $500 limit, have been making on time payments for one year, always more than required.  Current balance is around $200, which I can easily pay off by the end of the month.  I've been working at the same job for four years now. Salary plus child support gives me around $52K annual income. Rent is $950.

Just pulled my scores yesterday. Equifax 658, Experian 575, TranUnion 616.

I keep getting these offers in the mail about Cap 1 pre-approvals up to $30K.  I know these are to bait me to the showrooms.

I do belong to Patelco credit union.  But where do I start?  I don't want too many inquiries appearing on my report before I am ready to buy.  I was hoping to get a car by the end of this month to take advantage of the end of the model year deals.  I have a friend who will help me with down payment of $2500 and will even co-sign if necessary.  I want to go the route that is going to give me the best chance to improving my credit, so I am open of buy or lease.

My first choice in a Honda Accord or Civic, next would be a Toyota Corolla or something similar.  All around $20K or so.

Help me please!!

[ds3]

I would avoid Cap 1 after you burned them once. Apply at your CU, then take whatever rate they offer you to a dealer and let them try to beat it. Don't worry about inquiries, as they will all look like one as long as you buy something within a month or so of starting the process.

If your CU turns you down, I would go to a dealer and let them find a bank. Your rate will most likely be somewhat high, but you can always refi in a year. As far as a cosigner, one of the golden rules of good credit is never cosign for anyone unless you are willing and able to take on the debt yourself. Consider that before you let someone cosign for you...friend and family relationships are worth more than money.

Best of luck!

[aj1901]

Find a credit union that pulls Equifax only and see if you can get a pre approval that way. You can normally just call your credit union and see which they pull. Since it's your highest score in theory you should get the best terms with it if approved. At that point you can always give the dealer the opportunity to beat your current approval rate if you are successful. Best of luck to you.

[rich092201]

OK I have trans union score of 561. I got approved through ally bank on a new 2013 Malibu

Gm financial and ally bank both have special programs on malibus using a subvented interest rate in lieu of rebates.

I got an 8.9 rate instead of 18.99 which was the rate of the car I traded in and I was 4500 upside down and only put 1000 down

[luvmyzoebarry]

Wow, I've learned so much valuable information in the last three days reading this board!!

Thank you so much for the responses!  Keep them coming!!

This board ROCKS!!  And I can't believe it's for FREE!!!!

[Creditaddict]

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@rich092201 wrote:
OK I have trans union score of 561. I got approved through ally bank on a new 2013 Malibu

Gm financial and ally bank both have special programs on malibus using a subvented interest rate in lieu of rebates.

I got an 8.9 rate instead of 18.99 which was the rate of the car I traded in and I was 4500 upside down and only put 1000 down

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WOW... Really?

What state are you in?

What documents did you have to provide? did you have bad car stuff on your report to get you to that 561? what credit report?

sorry to OP, Apply at the credit union... then you have a better picture of where to go from there... Dealerships LOVE to beat the rate of loans you already have offers for!!

Toyota is WAY easier to get a lease or finance from then Honda... They will lease tier 3 if they can pull a 650... you can get financing much much lower the rate will just be ugly....

[rich092201]

I live in new York, no docs required unpaid Santander repo from 2009 and also two open autos

[Creditaddict]

Is it just Malibu?