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Posts: 14,366
Registered: ‎12-30-2011
Re: Where to Apply?
[ Edited ]

MovingForward_2012 wrote:
Yeah I know but the OP's score isn't great and the OP is looking at high interest. Not all subprime lenders do a rate reduction program so my point was to find someone that does.

True, though generally speaking you're better off just taking a car loan for whatever you get offered these days, and then refinancing 6+ months down the road assuming you've maintained a clean credit history during that time.  That's what I and many others have done with excellent success, in my case it was a 19.35% subprime loan from WFDS taken down to 5.99 with DCU 8 months later.


I'd eliminated my "first-time-buyer" penalty by that point, and my classic FICO's had moved by 50 points upward, probably my Auto Enhanced moved even further off the 551 Auto EX I originally had.  Rate reduction is useful if you're stuck in a credit strata like I am currently, but I had inferred from the OP's original post that this was likely their first auto loan, or possibly would be their first successful one judging from the score as you intimate.  


Either way, 6 months or a year of positive history can do wonders for even the most awkward of files, and a subprime auto loan doesn't have to be kept forever.  If you can afford the payments, and the car's needed, my own opinion is just wrap your arms around whatever lender will offer financing and then go find a quality refinance down the road which are often available these days.  Money is cheap currently, even the fiscal cliff isn't changing that.  Debatably from what I read today regarding Wells Fargo's balance sheet, it might even be even easier to get a loan now than ever before between the low federal funds rate, and the fact more and more people are dropping their savings into bank depository accounts than anytime in recent history apparently.


Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 694, EQ 8 714, TU 8 708, EX 8 724 (04/01/16)
Goal Score: 700 on EQ 04 (01/01/17)

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