Moderator Emeritus
Posts: 12,937
Registered: ‎12-30-2011
Re: Can I get decent auto financing with old collections and charge offs?

Everything will be looked at, but if you're clean for 4+ years, that'll likely be their primary focus.  


It's hard to predict APR's for mixed files and middle scores as it really depends on what lender you wind up with.  If you have financed a car successfully in the past, that'll likely help too.  I would talk to CU's and maybe a few others (Cap One possibly?) before going down to the dealership.  Whether the collections and CO's are opened or closed may make a lot of difference when it comes to anyone underwriting the loan, and downpayment always helps too.


End of the day, if your report is on the ugly side, I'm guessing you can still get in the 10-12% range with what you stated, but if you have a positive auto loan or maybe mortgage, and your CO's and collections are paid, you might do better than that.  Won't really know till you get out and start testing the waters.  Just be ready to pull the trigger within a month of starting at the latest from a FICO scoring perspective, though these days it doesn't take that long anymore to try a dozen or more lenders if required.

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)

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