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Valued Member
Posts: 36
Registered: ‎10-05-2012
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Who should apply? Tough situation

So I've been working on rebuilding my credit, brough my scores up a ton, etc., to get ready to buy a home next year.  Then the thing that I most feared happened this weekend...both of our cars broke down and ended up with major issues that make then undriveable, and repairs will cost way more than the value of the cars, so we're going to need to just trade in at least one of them and get a new (or used) car.  Didn't really want to have to acquire a car loan (not enough cash to buy a reliable one outright) until after getting a mortgage...but sometimes life happens.

 

Here are my issues:  I just paid, last week, a judgment that was on my public record.  I know the CA hasn't filed the satisfaction papers with the court yet, so the PR listing is still on my CR.  They said it could take up to 30 days for the listing to show as satisfied/paid.  And I know it's pretty much impossible to get a car loan with an outstanding judgment on your report.  Unfortunately, we really need a car before 30 days...3 kids, different work shifts, etc.  My husband's credit is still bad, scores are around 590, with about 8 collections.  We haven't really started working in earnest on his credit repair yet, as we were going with just mine for the mortgage.  So my question is...who should apply for the loan?  Would I even have a chance, or would my husband have a better chance?  Would any auto financer take into consideration copies of the payments to the judgment CA as showing it was paid?  What might my options be in getting a car before my judgment lists as paid?

 

Thanks,

Wheel-less in Pittsburgh


Starting Score: 531
Current Scores: EQ-662; TU-679; EX-660
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Posts: 1,057
Registered: ‎09-29-2009
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Re: Who should apply? Tough situation

If you are planning on using your income and credit to buy the house then I would suggest that you have your DH apply for the car loan. With a decent down payment (about 20%) then the dealerships can get his scores approved for a used car. The interest rate may not be the best. I would expect 10% or so, but as you work on his credit issues you can always refinance the loan in a year or so. Sometimes we just have to bite the bullet and pay for our past mistakes while we are rebuilding.

 

I personally had an auto loan through Capital One at 18% when I was starting to rebuild. I signed a five year note and after two years I was able to transfer the balance over to an NFCU CC when they did one of their periodic 0% and no BT fees offers. It was not friendly for the time I had it. But it appears as a positive trade line on my reports for the next time I need an auto loan. I'm still driving that one for the next few years as long as it doesn't have major problems.:smileyhappy:

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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Established Contributor
Posts: 711
Registered: ‎10-25-2011
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Re: Who should apply? Tough situation

Maybe try you and then if not approved then try him? Given your situation, you're going to need to try all options. Try applying at credit unions, as most big banks probably wont do a manual review and see that you have paid off the judgement. Credit unions may.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.
Valued Member
Posts: 36
Registered: ‎10-05-2012
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Re: Who should apply? Tough situation

I spoke to the law firm who had the judgment, yesterday, and they will email me a copy of what they're sending to the courts, so at least I'll have something.  I am a member with a couple credit unions, and that is a good option.  However, I think I may have my hubby apply for the Capital One blank check, first.  If he gets approved for one of those, we can use that to see if the dealer or CU can give a better rate.  Not too worried about the rates at the moment, though, just need the wheels.  Can always refinance later.  Just wish I had the paperwork for this weekend, as a lot of places are having big sales and higher trade-ins for the holiday.  


Starting Score: 531
Current Scores: EQ-662; TU-679; EX-660
Goal Score: 720


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Valued Member
Posts: 36
Registered: ‎10-05-2012
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Re: Who should apply? Tough situation

As an update, the hubby applied for the Capital One Blank Check, was approved at 12.93%, $15,600 limit.  We went looking at the dealers this weekend and found a minivan we liked (2008 Nissan Quest SE, 55kmiles), and were approved by the dealer at 10.75%.  So we didn't need to use the blank check anyway...and were able to get a better rate.  Plus, the car had sat on the lot for a while and was sold for way less than NADA value...about $3k less...so that will be good for when we attempt a re-fi next year after some more credit repair for him. 

 

So excited!  Oh, the score the dealer pulled was 623, auto-enhanced FICO, and we had to put $500 down.  Ended up taking the extended warrantee and GAP insurance...payments are $315/mo. - 72mos.  Will definitely re-fi next year.  Just glad to have reliable wheels again!  :smileyhappy:


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Posts: 9,674
Registered: ‎01-28-2010
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Re: Who should apply? Tough situation


Nik2010 wrote:

As an update, the hubby applied for the Capital One Blank Check, was approved at 12.93%, $15,600 limit.  We went looking at the dealers this weekend and found a minivan we liked (2008 Nissan Quest SE, 55kmiles), and were approved by the dealer at 10.75%.  So we didn't need to use the blank check anyway...and were able to get a better rate.  Plus, the car had sat on the lot for a while and was sold for way less than NADA value...about $3k less...so that will be good for when we attempt a re-fi next year after some more credit repair for him. 

 

So excited!  Oh, the score the dealer pulled was 623, auto-enhanced FICO, and we had to put $500 down.  Ended up taking the extended warrantee and GAP insurance...payments are $315/mo. - 72mos.  Will definitely re-fi next year.  Just glad to have reliable wheels again!  :smileyhappy:


Congrats on the approval !   IMO you should reconsider the GAP insurance; if the book value of the car is already several thousand above the amount you owe then you very likely won't need it.

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Valued Member
Posts: 36
Registered: ‎10-05-2012
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Re: Who should apply? Tough situation


pizzadude wrote:

Nik2010 wrote:

As an update, the hubby applied for the Capital One Blank Check, was approved at 12.93%, $15,600 limit.  We went looking at the dealers this weekend and found a minivan we liked (2008 Nissan Quest SE, 55kmiles), and were approved by the dealer at 10.75%.  So we didn't need to use the blank check anyway...and were able to get a better rate.  Plus, the car had sat on the lot for a while and was sold for way less than NADA value...about $3k less...so that will be good for when we attempt a re-fi next year after some more credit repair for him. 

 

So excited!  Oh, the score the dealer pulled was 623, auto-enhanced FICO, and we had to put $500 down.  Ended up taking the extended warrantee and GAP insurance...payments are $315/mo. - 72mos.  Will definitely re-fi next year.  Just glad to have reliable wheels again!  :smileyhappy:


Congrats on the approval !   IMO you should reconsider the GAP insurance; if the book value of the car is already several thousand above the amount you owe then you very likely won't need it.

 

 


Yeah, I didn't want to go for the GAP, but he was putting his name on the car, and he liked having the sense (albeit a false sense) of security.  LOL  Is GAP something you can get rid of when you re-fi?


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Posts: 9,674
Registered: ‎01-28-2010
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Re: Who should apply? Tough situation


Nik2010 wrote:


Yeah, I didn't want to go for the GAP, but he was putting his name on the car, and he liked having the sense (albeit a false sense) of security.  LOL  Is GAP something you can get rid of when you re-fi?


Yes, when you refinance the vehicle just decline the GAP when they offer it.    Also I believe there might be a cancellation period with GAP whereby you can remove it within a brief period of time, should you decide to get rid of it now.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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