Frequent Contributor
Hammer23
Posts: 428
Registered: ‎01-21-2012
Re: Auto loan advice from an Underwriter

Ld78 wrote:

Hi. My husband and I have verybad credit with scores around 560. We are behind on our mortgage and havea often been late on our payments including auto, although the auto payments are always made. Our car just died and I think we're looking at quite an expensive repair, to where we shouldconsider buying a new/new used car instead. Our combined yearly income is about $160,000/year. We'd be looking at a loan of about $23,000. Do you think we can get a loan? We might be able to put some $$ down, like $3,000 or so. Any help and advice you can give would be greatly appreciated. 


Your mortgage credit is going to be a hurdle in addition to your scores. If your auto history is good and you are able to make the downpayment, there should be options for you. Given your current situation, you should expect higher interest rates. My advice would be to go with the least expensive car acceptable for your needs. Pay the new loan well while you clean up your credit situation, then when your score rebounds, refinance or trade the unit for a lower rate.

 

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