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Contributor
Posts: 94
Registered: ‎03-12-2008
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"18%"

I was approved through Roadloans, but at the price of 18% financing with a $2500 required down payment and they only approved me for $8600. SUcks! But I have to start somewhere. I have a repo on my credit from 2005. My plan was to keep the cash car that I bought until the wheels fell off or my scores improves and the repo fell off, whichever came 1st. Well, the wheels fell off, or rather someone rear ended me and knocked them off. Somebody help! Any suggestions on another company I could try. Lending Tree referred me to road loans as well.


Starting Score: 1/2011 TU 539 EQ 481
Current Score: 2/2011 TU 542 EQ 489 EX 505
Goal Score: 620+


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Frequent Contributor
Posts: 358
Registered: ‎04-17-2008

Re: "18%"

Have you tried calling you local banks to speak to a loan officer with your current credit situation?
Contributor
Posts: 94
Registered: ‎03-12-2008
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Re: "18%"

No, I was actually thinking that it wouldn't help. I'm with a credit union, but I believe they have very strict guidelines.

Starting Score: 1/2011 TU 539 EQ 481
Current Score: 2/2011 TU 542 EQ 489 EX 505
Goal Score: 620+


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Established Member
Posts: 30
Registered: ‎07-19-2008
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Re: "18%"

I know how you feel....I bought a 06 accord at 18% in sept and my scores at that time ranged from 620-650, with $600 down. I tried a cu but denied.  Times are rough and lending insit are cutting back, lowering credit lines and unless your in the 720+ scores you can expect to pay more.

 

Bottom line...like myself, if your options are limited...you do, whatcha gotta do...work on your scores and paying your bills on time.  Its gonna be a while before the economy change for the better so, take this opportunity to try and improve on your situation as best, as you can.

 

Good luck.

Established Member
Posts: 30
Registered: ‎07-19-2008
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Re: "18%"

by the way...i forgot to mention, i financed thru wells fargo via dealership.
Contributor
Posts: 94
Registered: ‎03-12-2008
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Re: "18%"

Yeah, thanks for the words of encouragement. That is exactly what I plan on doing. just pulled my annual free credit reports and it's looking better than where I began. Still got a lot of work to do. I know that a car loan, no matter what the interest rate will do good for my credit mix. I'll keep you posted  Grib. Let you know what kind of ride I chose :smileywink:

 


Starting Score: 1/2011 TU 539 EQ 481
Current Score: 2/2011 TU 542 EQ 489 EX 505
Goal Score: 620+


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New Contributor
Posts: 68
Registered: ‎09-20-2008
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Re: "18%"

It is normal in the market place to have high interest loans depending on credit ... but you have to start somewhere esp if you have a recent repo on record ...

 

I would say put some money down to make your payments affordable and do not buy anything more than just transportation (no sense in paying 18+% on something just for looks etc) that way the high interest wont be that much because the amount financed will be fairly small ....less than 10k .....depending on how much is financed and length of term I would consider gap insurance also in case what happened to you this time happens again...

 

good luck

Contributor
Posts: 94
Registered: ‎03-12-2008
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Re: "18%"

That's the plan Keep. I found a little 07' G6 for $10,900 and I've applied for the downpayment assistance program that Texas has to assist with purchasing a car in return for giving them your car that is 10 years or older or won't pass for inspection. When I used a financial calculator with all the info (I plan on haggling to get the car down to about $9,500 - $10,000 :smileytongue:) then give them the $3000 voucher, it gave me a car payment of $186. I will pay around $250 - $300 so that I won't end up upside down when I trade it or not have so much to refinance at a lower interest rate in about a year or two. What do you think, sound like a plan?

Starting Score: 1/2011 TU 539 EQ 481
Current Score: 2/2011 TU 542 EQ 489 EX 505
Goal Score: 620+


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Frequent Contributor
Posts: 367
Registered: ‎03-28-2008
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Re: "18%"

[ Edited ]
I dont think any one should have to pay 18% unless your scores merit that kind of intrest rate. I signed on 18% back in 06, my scores where mid 500's. It made me sick to look at my contract and see the $10k in intrest alone. A $19k car was going to cost close to $30k. I would at least bring copies of your current reports and see what lenders can do for you. I bought another car just about 6 months ago, Roadloans offered me something like 17%, I got financed through Chase for 9%. So in other words, despite what people say about Roadloans, Im not impressed with them at all. In your case, maybe financing a small amount would help your "car credit". Get some positive TL reporting, stay current, and go from there. Thats what I have been doing. That repo is killing you without a doubt. I have an old repo as well, and I know it did not help me any. Just like my ex trash tramp of a Gf once said, you have to suck it up to get established again. I sometimes question whether it is worth it or not. Froogle seems to be the way to go these days, if I could get out from under my current auto loan right now, I'd drop it like a cheesy metaphore. G/L!
Message Edited by going2tdc on 12-01-2008 10:08 PM
New Contributor
Posts: 68
Registered: ‎09-20-2008
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Re: "18%"

Going... you did exactly what I told the poster not to do ... do not get anything that is going to have you financing a large amount of money ..of course 20k is not that much now a days but you can definitely get away with finding a lower priced auto to finance ...especially just to re-establish your credit otherwise you just have to be able to afford it and swallow the high interest rate .. it sucks ..but what other choice do you have?

 

You are right though after re-establishing then definitely look around for a dealer that can help you with your financing ..carrying in your credit score will only help if the dealer that you are working with can see a recent (1 wk old or so ) credit report ....even then a solid approval will only come with a good deal structure on the car and the right term and down payment.  I wont bore you with details but the credit scoring is only a part of it .. with bad credit down payment is key ...its a wonder what a chunk of down payment on the right car will do....

 

One thing after a BK you must stay clean ...derog after BK is a killer ..you do not understand how many peoples credit I look at daily and see bad checks to pizza places ...collections from smud/pge/phone companies/cell phones/ etc ... and they expect a bank to give them money for a car they cannot tie down and repo if necessary?  Its terrible ... the government should teach credit starting in Jr. High School and pound it into peoples head thru high school ... but then no one would make money lol since it seems like the banks prey on people with bad credit

 

Anyways poster stick with your plan or find someone to co-sign with you and whatever you do do not have any late payments to any creditors showing when you go get your car. 

 

good luck!

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