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Member
Reshuffled39
Posts: 6
Registered: ‎01-07-2013
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Used Auto loan help

I am buying my first car on my own (age 31). My Fico is 625 , Equifax is 615 and Experian is 651. I have some negatives on my Credit report such as 2 medical bills in collection , and one delinquent credit card have paid off all my credit cards and am basically Debt free. I hope to get a car in the next 4 months due to me wanting to still raise my credit scores to the 660 range. Will my negative factors on my credit report hurt my chances of getting a used car loan for about $21,000???


Starting Score: Equifax 582 Trans 581Experian 578 1/7/13
Current Score: Equifax 647 Trans 620 Experian 650 3-25-14
Goal Score: 700 all 3


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Revelate
Posts: 9,645
Registered: ‎12-30-2011
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Re: Used Auto loan help

[ Edited ]

Reshuffled39 wrote:

I am buying my first car on my own (age 31). My Fico is 625 , Equifax is 615 and Experian is 651. I have some negatives on my Credit report such as 2 medical bills in collection , and one delinquent credit card have paid off all my credit cards and am basically Debt free. I hope to get a car in the next 4 months due to me wanting to still raise my credit scores to the 660 range. Will my negative factors on my credit report hurt my chances of getting a used car loan for about $21,000???


They won't hurt your chances per se, but they will hurt your initial APR and also the amount you need to bring to the table.  If you need a loan of 20K, expect to need about 5K in downpayment honestly on a used car for a total of 25K purchase price.  20K car, 4K, etc... 20% roughly.

 

You mentioned this is your first car on your own, have you done a joint or otherwise co-signed auto loan previously and is it on your reports?  That might help you a solid amount if it's in good standing; if you don't have one, be ready for your Auto-enhanced FICO to be possibly quite a bit lower than your actual FICO found here or elsewhere.

 

If you can get north of 640, anecdotally you have more options, but I would suggest looking into any local credit unions you have, and maybe pick one or two others as well that offer public access; CU's in general appear to be throwing money at folks to take their auto loans, it's a good time to be shopping.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Member
Reshuffled39
Posts: 6
Registered: ‎01-07-2013
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Re: Used Auto loan help

no joint auto loans. this would be my first auto loan. the car I want is A 2003 mustang cones so I don't think a credit union would give me a loan fir a car that old.

Starting Score: Equifax 582 Trans 581Experian 578 1/7/13
Current Score: Equifax 647 Trans 620 Experian 650 3-25-14
Goal Score: 700 all 3


Take the myFICO Fitness Challenge
Moderator
Revelate
Posts: 9,645
Registered: ‎12-30-2011
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Re: Used Auto loan help


Reshuffled39 wrote:
no joint auto loans. this would be my first auto loan. the car I want is A 2003 mustang cones so I don't think a credit union would give me a loan fir a car that old.

Actually a credit union may be your best choice in that.  Anecdotally they've done deals on older cars, the national banks likely wouldn't at all.  I'd still go look at their websites and talk to them if they appear functional. Alternatively if you're buying from a dealer, they may be able to arrange financing too.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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