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dalasdon
Regular Contributor

auto loan

want to buy a new car, credit score is low, in the 600s, hoping to have it up to 650's here really soon.  how do unpaid collections reflect on my credit report?  if i cant get them deleted i would rather not pay them as opposed to them showing as paid if its not going to help my credit score, since its about $6000 worth.

Message 1 of 9
8 REPLIES 8
teenastie
Established Contributor

Re: auto loan


@dalasdon wrote:

want to buy a new car, credit score is low, in the 600s, hoping to have it up to 650's here really soon.  how do unpaid collections reflect on my credit report?  if i cant get them deleted i would rather not pay them as opposed to them showing as paid if its not going to help my credit score, since its about $6000 worth.



Financing an auto loan is possible with a credit score in the 600s. however, underwriters like to play with your DTI and other factors regarding your ability to pay back the loan. How's your work history? How long on the job? FT/PT? How much are you looking to finance? What is a comfortable payment? How much down? There are many many more questions to ask but I don't want this reply to be too long. It may not get read if I write a novel. 



Message 2 of 9
dalasdon
Regular Contributor

Re: auto loan

okay make 41k a year, ive been with current company for close to 2 years, always been employment for long term, always moving up the chain whether with same or diff companies, full time, car i want is 35k, hopefully 0 down, but could put 5k.  do they take those unpaid collections or any unpaid items on cr as debt and frowned upon?

Message 3 of 9
teenastie
Established Contributor

Re: auto loan


@dalasdon wrote:

okay make 41k a year, ive been with current company for close to 2 years, always been employment for long term, always moving up the chain whether with same or diff companies, full time, car i want is 35k, hopefully 0 down, but could put 5k.  do they take those unpaid collections or any unpaid items on cr as debt and frowned upon?


They TRY to throw that in your face to increase their profit margin by adding points to the auto loan. There is a possibility that it won't apply to your approval. My recomendation is always go into a dealership with financing. The dealer will attempt to match or beat whatever rate you have. It's funny I have a cousin that walked into a dealer who ran her credit and offered 8%. My cousin said, "That's OK my CU gave me 2.5%" The dealer countered with 2.4%apr. YMMV.



Message 4 of 9
dalasdon
Regular Contributor

Re: auto loan

yea i went to the bmw dealership, and was told it would be around 4.9 max 12.9, but not to go to credit union.

Message 5 of 9
teenastie
Established Contributor

Re: auto loan

Don't go the CU??? I wonder why...



Message 6 of 9
MarineVietVet
Moderator Emeritus

Re: auto loan


@dalasdon wrote:

yea i went to the bmw dealership, and was told it would be around 4.9 max 12.9, but not to go to credit union.



I would walk (no run quickly) from this dealer and never look back. You have a right to look for financing wherever you please.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 7 of 9
dalasdon
Regular Contributor

Re: auto loan

well he didnt tell me not to go to the cu, i just explained to him that i had my credit report in hand and that i had spoken to a loan officer there and she was willing to look at cr before pulling there own to let me know where i stood.  i think i might wait on that idea also, as i want to get the 50 pts im hoping it will increase in the next 2 weeks and hopefully have my state liens removed as well.  im going to dispute those and hopefully they will fall off since they are satisfied

Message 8 of 9
Chris123nTx
Established Contributor

Re: auto loan

Wow thats a lot of car for the income.
Message 9 of 9
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