Re: How to cash in with Cash for Clunkers with Bad Credit?
07-15-2009 02:27 PM
In case you do not have it, here is the info on the Cash for Clunkers program from the govt.... www.cars.gov.
When you meant 30 days, did you mean you have one 30 day late on your mortgage? If so I would suggest writing a good will letter to your mortgage company asking them nicley if they would please consider removing the late as you need to desperatly buy a new vehicle. You can find examples of good will letters on the myFICO website.
Even though your scores are in the low 600's, you should qualify for an auto loan but the interest rate will be based on your score so I would think you would qualify for a rate that may be a a point for two higher. Check out the Auto Loan section of the forum and look for the thread at the top where people have posted what loans they have been approved for. It inlcudes the APR (rate), how much the loan was, the loan term, etc. I would jump to the last few pages for loans approved in the last few months as they are obviously more relevant.
Also, plan to shop for auto loans. I think you can shop for up to 3 loans with in a week or two and it will not affect your credit score. Maybe someone can post what the exacts are of this. Anyways, DO see what the local credit unions are offering. Maybe apply at the one you belong to and see if there is another credit union that is offering good rates. The dealers sometimes have decent rate offers but I would ask lots of Q's before applying and letting them pull your credit report. Who knows, with the rate you get it may be OK, not real high and would have no need to refi.
Hope this helps some! Good luck!