Will I qualify?

[fezwhy]

I have a foreclosure that is set to fall off next month.  However I need a new car soon as my current car is leaking gasoline and is a safety hazard.

I also have 3 hard inquiries on my credit from last august, sept, oct when I tried to get a mortgage but was denied all 3 times.

Will the 3 hard inquiries hurt my chances?

I have 2 credit cards with no balances on either of them.  My scores are 660, 640, 636,

I have heard those hard inquiries hurt your credit for at least a year. I am wondering if I should wait until this fall to buy until after it's been a year.

I have no other debts or loans other than my 2nd mortgage which will fall off this November.

[Creditaddict]

Don't worry about inquiries so much.

what kind of car you want to buy? New/used

[fezwhy]

I am looking at a used honda civic or honda accord around the 12k to 15k range.  There are a lot available in my area for that price range.

I have 10k in the bank so a downpayment wouldn't be an issue.  But I would probably put around 3k down on a car as I would like to buy a house in the next few years.

[Creditaddict]

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@fezwhy wrote:

I am looking at a used honda civic or honda accord around the 12k to 15k range.  There are a lot available in my area for that price range.

I have 10k in the bank so a downpayment wouldn't be an issue.  But I would probably put around 3k down on a car as I would like to buy a house in the next few years.

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Should be good just don't tell them you have that much cash!

maybe apply at DCU or another local cu before going shopping

[fezwhy]

haha.   Yes I have the money spread out over a few different accounts with the bulk of it in my savings.  I will definitely look into that as my local cu has rates as low as 1.8% on used cars less than 5 years old.   

[fezwhy]

I emailed my local credit union to see if I would qualify.  The response was that if my score has gone up since last fall and I can put 20% down I may have a chance

of being approved.  

I reviewed my credit report and found something unsettling.

Unfortunately a student loan I cosigned on has been marked as charged off.  I fear I may not qualify now for any loan anywhere.  

I did speak to the owner of the loan and she had no clue.  Her taxes have been taking for the last 3 years for failure to pay student loans.  However this loan is a private loan.  

On the positive side one of my 2 foreclosure house loans will fall off in May.  So I may have to wait until June.  My score averages about between 620 and 640.  

My car is leaking gas and I do need a new car shortly.  I will just have to make due until I can put down a big payment.

I am only looking to spend 15k max on a car loan.

I did some car loan calculations and even at 14% for 4 years the payment would be affordable.  Hopefully my rate isn't that high.

[Creditaddict]

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@fezwhy wrote:

I emailed my local credit union to see if I would qualify.  The response was that if my score has gone up since last fall and I can put 20% down I may have a chance

of being approved.  

I reviewed my credit report and found something unsettling.

Unfortunately a student loan I cosigned on has been marked as charged off.  I fear I may not qualify now for any loan anywhere.  

I did speak to the owner of the loan and she had no clue.  Her taxes have been taking for the last 3 years for failure to pay student loans.  However this loan is a private loan.  

On the positive side one of my 2 foreclosure house loans will fall off in May.  So I may have to wait until June.  My score averages about between 620 and 640.  

My car is leaking gas and I do need a new car shortly.  I will just have to make due until I can put down a big payment.

I am only looking to spend 15k max on a car loan.

I did some car loan calculations and even at 14% for 4 years the payment would be affordable.  Hopefully my rate isn't that high.

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1. how do you not know your loan is charged off?

2. do you have a carmax in your area?

[fezwhy]

Because I only pull my credit report once a year.
I haven't heard of car max but will check into it.

[Remember0]

I'd recommend DCU in this case because we're talking about a <15k loan in this case. IF your EQ FICO is above 620, I can see them approving for something like 4-7% for 65 months. What's your EQ FICO like OP? And what is your monthly pre-tax income?

If DCU doesn't work, I'd recommend Cap One. Actually given the turmoil going on right now surrounding DCU approvals, I'd maybe try Cap One (or BofA, perhaps, but no idea how they react to 620s) first. With a 620+, you'll definitely get someone to finance you OP. Your APR may be pushing 10%, but it shouldn't be higher than 10% imo if you have a 620+.

[Creditaddict]

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@fezwhy wrote:
Because I only pull my credit report once a year.
I haven't heard of car max but will check into it.

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I meant it sounded like you were saying you contacted the person you co-signed for and they didn't know... 

carmax is a big used car dealership (I guess some of them have new too but most I have seen are just used only but they have very terrible interest rate loans for some very terrible credit if you have to get a car.

also I would apply now online for Roadloans and that will give you a rough idea what worst case scenario would be to buy a car... they will approve you instantly (or within minutes usually you get an email if not instant) with 3 offers (basically very little down or nothing, a little more down, or a lot down, and term and payment.

it's not my first choice but they are not the worst either.... rate may be... but I have used them before and the horror stories are more horror due to user error then bank issue I feel with some exceptions of course.