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Member
cnelson
Posts: 28
Registered: ‎09-18-2012
0

Where to apply for used car loan

[ Edited ]

Recently looking into getting a used car. It isn't for me, but my fiance'. Went to a Kia dealer, we wanted to lease one but told us even with my co-sign the scores were not strong enough. My score was a 758, not sure of hers. But the history on mine is short, and one of my recent CC still is not showing up yet.

 

My TU is a 719 and EQ is a 697. (Both reporting a balance of a CC, but actual balance is zero, so they should go up a bit)

Have one CC with a limit of 600, and another with a limit of 2000 but that is not showing on reports yet.

 

The loan ammount we would be looking for is probably around 10k - 12k. With 1k - 2k down. (no trade in, a tree fell on her car during huricane sandy) Give of take, not positive of what car we will end up going with yet. I think I would prefer to fiance through a bank, but not sure. What kind of interest rate should I expect and who should I go to apply? I want to try to get approved the first time so I don't have anymore INQ.

 

Btw, the letter of denial was from Cap 1 Auto, all the reason listed were from the co-signer, not from my credit. The deal said I would of been able to fiance a new at the lowest rate, but we really weren't interested in buying a 20,000 dollar car.

 

Also, I am wondering if I can go back to Cap 1, and get finacing directly with them, without adding another INQ, since all the reasons listed for deinal were on the co-app, not on me? Thanks for any information.

New Visitor
chuck77
Posts: 2
Registered: ‎11-22-2010
0

Re: Where to apply for used car loan

No expert but would say that I used myautoloan and got 3 offers, one of which I went to the dealer with.  They tried to make me switch which upset me so went to another dealer and bought car with loan I got from FA Finance.  Would use again.

New Member
Janice618
Posts: 11
Registered: ‎05-01-2011
0

Re: Where to apply for used car loan

I found this tool last year and have passed on to my BFF's - Pretty cool tool to use for estimating interest rate - http://www.myautoloan.com/need-to-know.html  Hope this helps.

Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012
0

Re: Where to apply for used car loan


cnelson wrote:

Recently looking into getting a used car. It isn't for me, but my fiance'. Went to a Kia dealer, we wanted to lease one but told us even with my co-sign the scores were not strong enough. My score was a 758, not sure of hers. But the history on mine is short, and one of my recent CC still is not showing up yet.

 

My TU is a 719 and EQ is a 697. (Both reporting a balance of a CC, but actual balance is zero, so they should go up a bit)

Have one CC with a limit of 600, and another with a limit of 2000 but that is not showing on reports yet.

 

The loan ammount we would be looking for is probably around 10k - 12k. With 1k - 2k down. (no trade in, a tree fell on her car during huricane sandy) Give of take, not positive of what car we will end up going with yet. I think I would prefer to fiance through a bank, but not sure. What kind of interest rate should I expect and who should I go to apply? I want to try to get approved the first time so I don't have anymore INQ.

 

Btw, the letter of denial was from Cap 1 Auto, all the reason listed were from the co-signer, not from my credit. The deal said I would of been able to fiance a new at the lowest rate, but we really weren't interested in buying a 20,000 dollar car.

 

Also, I am wondering if I can go back to Cap 1, and get finacing directly with them, without adding another INQ, since all the reasons listed for deinal were on the co-app, not on me? Thanks for any information.


I'm bit confused.  A 758 score doesn't allow you to lease??

 

Where did you get this 758 from?

 

Where did you get your 719 and 697 from?  Are these scores you purchased from this myfico site?

 

Why do you need/trying to have a cosigner?  Is this a car loan with your name and your fiance as the co signer?

 

^^With a 758 true Fico (or Auto ehanced fico) you should be able to get a car loan without a co signer -- even with a short credit history.  As my friend who had mid 500s, no postitive TLs at all and short credit history got a 12k car note without a co signer.

 

 

As far as your question goes, you might want to look at the bank you (or she, or whomever is getting this loan) bank at or perhaps at a local CU.  

 

Also you might want to try to go to a large respected car dealer that specializes in "second chance" financing.  Second chance financing helps ppl who are rebuilding their credit or are first time car buyers with little to no credit history.  This is what my friend did.  Granted her interest rate was very high (due to baddies), and your interest rate might be high too but due to first time car buyer.

Member
cnelson
Posts: 28
Registered: ‎09-18-2012
0

Re: Where to apply for used car loan

Thanks for the reply. Sorry if I was a bit vague in my earlier post. I was trying to get it done a little quickly. The loan would be completely in my name. I'm not going to add her as a co-signer.

 

At the dealer, HE said my score was a 758, (Even tho I thought it was closer to a 720, but I wasn't going to complain!) The 719 TU and 697 EQ are ones I purchased from myfico. I just got a denial letter from Ally bank, they had my score as a 692 EX. However all the denial resons were from my credit. They listed;

 

Length of Acct. History

Lack of recent installment loans

Proportion of Balances to high (It must of been pulled before the updated report because I pay in full each month)

To few accts currently paid as agreed. (My reports are not showing my newest CC acct, which would bring me up to two accts)

To many INQ in the last 12 months. (Not sure why, I only have 4, at the time they pulled it was ONLY 2, the other 2 came from the dealer)

 

However the denial letter from Cap1 didn't list anything about my credit, all the denial reasons giving were because of the co-applicant (my fiance') But that won't be a issue anymore because the loan will be completely in my name.

 

So now I'm not sure where to go with all of this.. Any help would be great. I think we may end up waiting till febuary to buy if possible to save more money for a downpayment. Might be tough will just one car for now, but I'm sure we could swing it if we need to.

 

Any other advice?

Established Member
hrguy
Posts: 50
Registered: ‎11-06-2012
0

Re: Where to apply for used car loan

Sounds like the typical bank responses, you would do better with a credit union - where you could explain how you were doing good with the credit rebuilder and the new bank closed it..etc, and they would take that into account.  With those fico scores - a credit union will approve you at their lowest rate.  Most credit unions require 640 for just 5%, so anything over that just drives the rate even lower.  I think you will find once you apply at a credit union you will be driving in no time.  I am only 4 months out of Chapter 7 bankruptcy and my credit union gave me 10.74 with a 600 TU fico and and a fresh BK - Capital One wanted 21% APR....find a credit union you are eligible for and you will be driving the same day with your scores.

Filed BK 7: 2/28/2012 | Discharged: 7/24/2012
POST BK APPROVALS:
NFCU nRewards Secured Visa: $1000 7/12| Apple FCU Secured Visa: $1000 9/12
Toyota Finance Lease: 0% | 0.0008 MF 10/12
Barclay Apple Finance Visa: $2200 1/13
NFCU cashRewards Visa: $2500 3/13


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