@Anonymous wrote:I need an honest opinion on my situation Bare with me while I explain
I have a car that is really creeping up in miles and while it still runs ok I am needing to look at financing options, I have been rebuilding my credit for the past 6 years and have gone from mid 400's to now 635 Equifax and 619 TU...
My bank provides me a monthly score from Equifax, now weather or not its legit or a FAKO score I dont know its a credit union based in MA. I am in Arizona.
In Dec My Equifax Score was 665 I have no idea what my TU score was, but hen I recieved my email earlier this month with my new Equifax score it had dropped the 30 pts to 635 from 665 and so I panicked and pulled my report and discovered a new item in collections. It was a medical bill that somehow slipped bye, honest mistake for 210.00 well I guess the damage had already been done but I paid it anyways... I also have one other item in collections on my EF report for 349.00 that is from 2008 and a third on my TU Report that is from 5/2005
I paid the New Collection bill even though I know the damage has been done...
I want a truck I bought a boat cash last summer because I got a great deal and am tired of using my sisters SUV and trading cars... so I applied for a loan with my CU for 9500.00 and figured with the 9500.00 and 3-4 I have from cash and sale of current vehicle I could buy a decent truck with lower payments (i want to stay under 300 a month)
I was Turned down after more than 48 hr from my credit union, waiting for the letter in the maiml
I got a car from a buy here pay here dealer when I was 23 got my loan under 1000 bucks and had it repo'd in 05 In April of 2006 I settled on the remaining balance with them....
I am 30 now and I have only my school loan payment for credit NOTHING ELSE I have been on time from day 1 with the loan, never late and down to 42% debt to credit ration on the loan (97.00$ month)
I want a truck in a bad way and am hesitant to try any dealers because I dont want to be turned down and pay over the top interest if avoidable, but I also know that I need a new vehicle soon I need something more on my credit other than just the school loan...
Does anyone think I stand a legitimate chance of getting approved with the given circumstances or should I continue to limp along in my current vehicle.....
Current Salary - 45-50k annual
Time on Job 5-1/2 years
Installment accounts 1 - 97.00 per month
Credit Cards - 0
EF -Unpaid Collections - 1
TU- Unpaid Collections - 2
1 REPO/Charge off (Closed/Settled Status April of 2006)
Thanks in Advance!
What were the reasons for your CU denial?
Sometimes auto lenders will deny credit based off of the car or the price. your DTI seems reasonable. Baddies are usually not disqualifiers for auto loans (although you may have a higher rate due to their existence). There seems to be more to the story for the CU to deny you.
What kind of car did you advise the bank you were shopping?
What is the blue book of that car?
What kind of payment?
What kind of terms?
You should be able to get financing at many places given there isn't something I'm missing. Take a look at the auto approval thread to compare your income and score with rates others are getting.
@Anonymous wrote:Update...
So after reading thru a bunch of the approvals on the approval thread I decided to give Capital One a shot and was approved for up too 19,200.00 with an interest around 12-14.5% depending on the amt of the loan and the vehicle....
That being said I am not sure I want to go that route,
I want a truck and the stipulations from capital one require that I use one of their dealers and that the vehicle be less than 7 years old and have less than 70,000 miles.... WHich is fine however I can find a much better vehicle via private sale for less money....
I was thinking about other options, do any of these other banks allow for Private sale purchases? If Capital One approved me for that much who else should I try?
I dont want to keep having my credit Ran but I want to make the best possible purchase in my price range....
Banks don't like private sellers as their is no assurance that the vehicle was thoroughly inspected prior to sale. Basically, you could end up buying a hunk of junk default on the loan and the bank takes a loss at auction due to the car's craptacular state. Capital 1 and Santander are 2 subprime lenders who generally will finance many people. Their rates are generally higher, customer service is subpar and will motivate you to refi in 18 months. In your case I would recommend going to a dealer and allowing them to shop you for the best rate, for a decent auto. Stay away from private sales. If you want a cheaper price negotiate with the dealer to get your price a comfortable monthly payment. (Often times customers want the best price- it's not necessay if you need a car- as dealers usually make money on the back end).
Private-party deals are pretty much cash only, especially at sub-prime scores. I'm not even certain it can get done at most prime scores short of a personal loan.
Take the auto loan from Cap 1 or from somewhere else if you wish to keep searching, if Cap 1 approved you it's almost guarunted dealers can get you financing as well... they're nowhere close to the bottom of the barrel on their auto financing, and that's out of lenders that actually report too. The 12-14% APR for your scores is a decent ballpark number if you don't get sweetheart financing from either a dealer or a CU. That's about what I'm looking to get down to in another six or so months on my own car loan with scores which should be similar to yours at that point.
