Auto Loans

[kvennard]

my transunion score is 695("fair"), experian is 601 ("poor") and i have no credit cards currently so i have no fico score (?!).

i'm 27 and make 47k a year.  will i get an auto loan with a reasonable apr anywhere? what do i do :/ thanks everyone!

[bakalao2k]

You should look into why you have a large difference in the two credit scores.  Clean-up any baddies...if applicable.  Are you planning on putting any money down?

[MarineVietVet]

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kvennard wrote:

my transunion score is 695("fair"), experian is 601 ("poor") and i have no credit cards currently so i have no fico score (?!).

i'm 27 and make 47k a year.  will i get an auto loan with a reasonable apr anywhere? what do i do :/ thanks everyone!

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Hello and welcome.

One thing I will ask is where did you get your scores? No one has been able to buy their own Experian FICO score since February of 2009. Creditors can pull Experian and also there is a CU (PSECU) in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myFICO.

At one time you could also purchase your Transunion score at transunioncs.com but no more. Wal Mart now offers a TU08 score to those who have their store card and the Discover version.

Equifax will still sell you a FICO score found here: www.equifax.com/web-myfico-products/

[kvennard]

thank you for the help!

it's here at myfico where i try to check my score that it says i can't get one. google says it's because i don't have an active credit card that has been open for 6 months or more? i got my experian score for a buck on their website (then quickly cancelled the trial). i don't see any real discrepencies in the reports from what i can see, so who knows! i just don't want to find out that my credit is way worse than i thought it was and end up getting denied a lease or loan. if anything i have "no credit" or very little credit, but i pay my bills on time, i just don't have a credit card. 

credit is hard :/

[FrugalRican]

Credit is easy, just at first, there is somewhat of a steep learning curve.

No credit cards, you say?

Look into a secured card option. There are plenty out there.

Have you had cards before?

What do you even have that is giving you a score? Mortgage? Car loan? Past delinquent accounts?

Be a little more specific and we can point you in the right direction.

[kvennard]

Thanks for your guidance, Frugal!

I had a card about 5 years ago that I foolishly "paid off" and closed, it had been 90 days delinquent before that I think and I was just happy to have it taken care of at the time. No mortgage or other loans, I think my cable bill reports to the bureaus and maybe car insurance? I rent an apartment, my office pays for my cell phone, so as far as credit goes I'm pretty "off the grid".

I was thinking about getting a secured card, but if what I've read is correct then it will take 6 months before i can get any sort of fico score, and I don't know that I can wait that long for the auto loan. I know improving credit is not a quick fix, I'm just wondering if there is anything I can do / what I should expect given my situation.

Thanks again!

[LS2982]

I would look into getting a secured card and letting it age for 6-12 months if you can afford the wait so you'll have a FICO score and a better chance at better rates!

[FrugalRican]

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MarineVietVet wrote:

Equifax will still sell you a FICO score found here: www.equifax.com/web-myfico-products/

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Kven, you might have to go here.

It IS a purchase, but it'll give you a definite answer as to where you stand, even if it's just Equifax.

I really doubt the cable bill/rent insurance is reporting to the bureaus. As it stands, you probably just have that closed card that is a small blip giving you a semblance of a score.

The advice I can give you is to pull your report/score from the link and see exactly what IS (if anything) reporting.

If you get nothing, then you might have to wait the 6 months because for an auto loan, they'll probably ask for you to have a co-signer.

What would "I" do?

I'd purchase a beater car for about $1,500 (cash) that would last me 6 months - 1 year and get secured credit cards to build up some credit.

It's not exactly the best "money saving" option, but that $1,500 you spend on the beater, might mean savings of even more when you eventually DO want to get a newer car and instead you get a much lower interest rate by having been patient.

Don't take just my word though, I'm sure other people will chime in with plenty of options.

[cdtotten]

Hi Kvennard -

In order to have a true FICO score calculated, you must have the following:

• At least one account that has been open for six months or more
• At least one undisputed account that has been reported to the credit bureau with in the past six months
• No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased).

If you meet all such requirements, a score can be generated. Despite your account going 90 days late, it should still report for approximately 10 years, and the negative remarks will go away 7 years after the date of their first delinquency. You obviously do not have an open account.

Cable bills, car insurance, cell phones, rent, etc. do not report to the credit bureaus unless you go delinquent and they report a collections account.

Without a credit score, no lender is going to lend you a car unless it is a buy here/pay here situation where they pick the car and just kill you on interest charges. With a co-signer and a LARGE down payment, you may have a shot, but not a big one. Thin files are bad, no files are even worse.

If I were you:

1. Open a secured credit card with a local credit union (usually have lowest fees).

2. Pay your balance off every month, in full (prior to statement date for maximum FICO score).

3. Pay cash for any car you or going to buy (just wont make sense for you to finance with no credit).

Over time, your score will grow and you can add starter unsecured credit cards and watch your FICO shoot on up. Like you said, it is not an over-night thing... obtaining solid credit takes a minimum of 3-5 years to really show your worth, but that 90 day delinquency will bring your score down for a while if it is still reporting.

[kvennard]

thank you everyone for your your advice! I paid for the report and it says this:

Equifax

As of 03/12/2012

667

GOOD

TransUnion

As of 03/12/2012

648

FAIR

Experian

As of 03/12/2012

640

FAIR

So maybe it's not as bad as I thought? Or are they basing this on what little credit I have? Thanks again for your input, everyone!