topic Re: What do you think I can get? in Auto Loans

UPDATE: TU 673........... What do you think I can get?

Anonymous — Sat, 19 Mar 2011 22:11:26 GMT

I pulled my score today from Equifax: 603... but it is not reporting that that my credit card is paid in full. It's showing a 2176 balance on a 2250 limit card. This is paid off though. I don't have much of a history, recent student loans, a closed Discover card ( closed by creditor for late payments but not collections) and some old cards my parents had me on. I recently got an HSBC card to reestablish myself.

I'm trying to get an auto loan now that I've graduated college and have started a career. Discover is the only thing that reflects poorly. My last year of college I was so broke I coulnd't make the payments for about six months. So i have some 120+ marks.

What can I do to get my score up a little bit more? and what kind of loan do you think I can get?

UPDATE: I just pulled my TU scores and its at 673...does this change anything?

Re: What do you think I can get?

Anonymous — Mon, 14 Mar 2011 16:04:18 GMT

@Anonymous wrote:
I pulled my score today from Equifax: 603... but it is not reporting that that my credit card is paid in full. It's showing a 2176 balance on a 2250 limit card. This is paid off though. I don't have much of a history, recent student loans, a closed Discover card ( closed by creditor for late payments but not collections) and some old cards my parents had me on. I recently got an HSBC card to reestablish myself.

I'm trying to get an auto loan now that I've graduated college and have started a career. Discover is the only thing that reflects poorly. My last year of college I was so broke I coulnd't make the payments for about six months. So i have some 120+ marks.

What can I do to get my score up a little bit more? and what kind of loan do you think I can get?

You will need a downpayment and probably a co signer.

if you do not have a co signer you need to wait until you are about 1 year on your new job, and be ready to put at least 20% of the transaction down, you will want to work with a dealership to see if you can get into a first time buyers program. on something new and small like a Fiesta or Focus.

Most recent college grads still require a co signer if they have good credit, In truth negative information kinda kills when your file is thin. You may be better served waiting that year to also let your bad marks age more.

Re: What do you think I can get?

Anonymous — Mon, 14 Mar 2011 16:11:16 GMT

A co- signer is definately out of the question. I have been at my new job since May of last year...so I'm almost at a year now. I'm more than willing to put 10% to 15% down towards it.

My history isn't too thin, just that I've only had a few cards, but my oldest is about 4.7 years...but its the discover. No auto loans though. Everything else in my CR is perfect. No lates or missed, no high utils, or anything like that.

Once this card is reporting as paid up, I think my score shoud jump up right? What score do you think I need to get a loan of about 22K? With a reasonabe rate....

Re: What do you think I can get?

Anonymous — Mon, 14 Mar 2011 17:07:37 GMT

As USMC mentioned, you are going to have some trouble getting a solid loan without a cosigner. 120+ day lates on a thin credit file (yes, you have a 5 year history, but thin also means not that many trade lines) is never a good thing. It is a major derogotory item, almost the same score impact as if it were charged off. The effect will lesson over time, but it will take the full 7 years to get those points back.

You may see a nice jump from getting that card paid off (i.e. 25-30 points potentially), but auto loans have a lot more factors to consider then your score. Major derogs in a short history are just going to turn lenders off. I don't see you obtaining a loan that large without a cosigner unless your score jumps dramatically, you put 25+% down and your interest rate is through the roof.

Re: What do you think I can get?

Anonymous — Mon, 14 Mar 2011 19:49:42 GMT

Oh man...that's not the news I was hoping for.

Is there anything you guys can think of that I can do to try and make it happen? I've tried asking for a good will gesture from Discover, but everytime I ask they say "we can't do it". I'm not some deadbeat that doesn't pay my bills... and I know that doesn't mean jack to a lender....but I really hate that one hardship can do so much damage.

It seems though, that many of the approvals listed in this forum are for much worse situations... yet I see approvals for 30k with an 8% rate and a 560 score. I don't understand it.

When do you think I would be able to get the loan at reasonable rate, if I continue with a good record?

Re: What do you think I can get?

Anonymous — Tue, 15 Mar 2011 05:32:46 GMT

@Anonymous wrote:
Oh man...that's not the news I was hoping for.

Is there anything you guys can think of that I can do to try and make it happen? I've tried asking for a good will gesture from Discover, but everytime I ask they say "we can't do it". I'm not some deadbeat that doesn't pay my bills... and I know that doesn't mean jack to a lender....but I really hate that one hardship can do so much damage.

It seems though, that many of the approvals listed in this forum are for much worse situations... yet I see approvals for 30k with an 8% rate and a 560 score. I don't understand it.

When do you think I would be able to get the loan at reasonable rate, if I continue with a good record?

Cars are not credit cards. There is much more to the transaction then a score.

You have never listed your income or post college career.

We can only give advice based on the information you give.

many of the instances you see on these boards where people got bought with bad scores, there was many other substantial factors going for them: like time on job, good DTI, sizable down payment, homeowners, had an existing or past good relationship with lender, showed no bad auto history even if they had a few bads on their card histories.

At the same time people post to these boards their experiences, it can easily not be the whole story.

- and there could also be a back story we do not know- maybe the dealer pulled strings to get them bought.

I am sorry to give you the bad news, but unless you have a substantial income and a great DTi and are able to come with a good 20%+ down, you need to be ready for a denial. Now you can luck out, but we really do not know.

ETA:

If you have a familial relation in the military see if you can get sponsored into Navy Federal Credit Union.

Consider joining a local credit union and working with them.

Re: What do you think I can get?

Anonymous — Tue, 15 Mar 2011 16:21:56 GMT

I'm not exactly sure how the DTI is calculated, but here is all the info I can think of.

Income: $37,440 / year

Only Debt is about 16k in student loans, payments being about $120/month

Phone bill is about $80 / month

Rent is $400 / month.

No past auto loans or history....but I'm only 22 years old...so I think that is a common thing.

My last job I was with for over 3 years.

My major was Economics in College, graduated with a Bachelors of Bus. Admin, and now work as a project manager for a major healthcare organization.

I've been working here almost a year.

Hopefully that is all the info anyone needs to tell me how I can make this thing happen. Unfortunately, I don't know anyone in the military. But I am giong to try and get in with our credit union once I hit one year on the job.

And again, thanks for all the help...I'm really impressed by this forum's wilingness to help people out.

Re: What do you think I can get?

mochi123 — Tue, 15 Mar 2011 16:57:49 GMT

Unions also have really good lending options, but then again, you would be looking for a co-signer, like a teacher.

Some buisnesses have ties with large banks, that offer special lending options to employees. That would be something to consider when your credit score improves a bit. I used to work at Best Buy and they offered special home mortage programs for homes near the main campus. Just try to hold off until a year and a half at your current job before getting another car.

I buy parts from Rock Auto.com and they're really good and cheap.

Re: What do you think I can get?

FicoGuy2019 — Tue, 15 Mar 2011 18:37:07 GMT

Definitely try a CU. I just went from 23% to 6.75% with my local CU within 30 days of buying my car and didn't even make the first payment yet. CU's are great!! Score was 605 last month and then jumped to 643 this month so I applied at my CU and approved.

Re: What do you think I can get?

Anonymous — Tue, 15 Mar 2011 22:19:49 GMT

@Anonymous wrote:
I'm not exactly sure how the DTI is calculated, but here is all the info I can think of.

Income: $37,440 / year
Only Debt is about 16k in student loans, payments being about $120/month
Phone bill is about $80 / month
Rent is $400 / month.
No past auto loans or history....but I'm only 22 years old...so I think that is a common thing.

My last job I was with for over 3 years.

My major was Economics in College, graduated with a Bachelors of Bus. Admin, and now work as a project manager for a major healthcare organization.

I've been working here almost a year.

Hopefully that is all the info anyone needs to tell me how I can make this thing happen. Unfortunately, I don't know anyone in the military. But I am giong to try and get in with our credit union once I hit one year on the job.

And again, thanks for all the help...I'm really impressed by this forum's wilingness to help people out.

Get into a credit union Now, that way you can build a relationship for when you do try to buy the car. Set up a direct deposit, be it you full pay or a set amount and go from there.

For someone who is clearing close to $2,500 a month I am sorry but I think you should easily be able to come up with 4-5K to get financed at a dealership.

I understand that you may only want to put 10% down, but you need to accept that things are what they are.

Re: What do you think I can get?

Anonymous — Wed, 16 Mar 2011 16:28:33 GMT

I can't join the credit union at my work until I've been here a full year. Right now, the bank I am at doesn't have good rates even for highly qualified scores...

I could put down a bigger payment no problem, but I thought the standard was about 10 - 15%... That's why I suggested it.

If I do put down a larger down payment, like 5 -7k... and get approved for financing, is my rate still going to be through the roof? I just don't want to pay >15% on a loan for the next few years...no matter how big or small. I understand the time value of money and all, but rates like that are ridiculous.

Thanks again for any and all of the advice!

Re: What do you think I can get?

chopperacn — Thu, 17 Mar 2011 18:39:33 GMT

Did you try Nissan? Even a 620 - 630 FICO now a days gets approved for a decent rate with them.

Re: What do you think I can get?

Anonymous — Thu, 17 Mar 2011 18:44:00 GMT

I did a few months ago...at the time my scored was only ~580. I don't know who they pulled... but I wouldn't get approved for anything more than about 10k, and even then they wanted about 4k down and 21%.

I did however just get a letter from capital one for a pre-approved 30k. But from what I've read about them on here, it's pretty hit or miss. I called and tried to get it bumped up to the blank check program...but they said I would have to apply seperately for it.

Re: What do you think I can get?

chopperacn — Thu, 17 Mar 2011 18:48:39 GMT

yeah pretty much it looks like you have to take a hit on the high % rate and hopefully get re financed at a CU, 6 months down the line.

I went from 18% to 6% in one year , back in '04 with Ford Motor Credit.

I refinanced with DCU back then.

Re: What do you think I can get?

Anonymous — Sat, 19 Mar 2011 22:07:44 GMT

OK... UPDATE.

I just pulled my Transunion scores since I paid off my credit card. It is now 673. Does this change anyone's mind about what I can get?

Re: What do you think I can get?

Anonymous — Sat, 19 Mar 2011 22:18:12 GMT

NO-- do you not get it? you have a very thin credit profile, you need to have a good down payment and expect not the best rates- although you may luck out.

Cars are not determined by credit score alone

Re: What do you think I can get?

Anonymous — Sat, 19 Mar 2011 22:23:45 GMT

Well Im going to the credit union Tuesday, I'm hoping to luck out I guess.

Re: What do you think I can get?

Anonymous — Sun, 20 Mar 2011 00:37:24 GMT

UPDATE #2

I just pulled my Equifax again...up to 656!

I also called Nissan to ask which agency they used... They told me that they always use Equifax for their financing...and that their tiers are as follows:

>750 is tier 0

700-750 is 1

640-700 is 2 and so on...

Right now I'm in tier 2 and they also told me that special rates apply to those in tier 3 or greater.

Re: What do you think I can get?

Anonymous — Tue, 22 Mar 2011 02:23:07 GMT

I just got approved through PSECU for $7500 (that's what i asked for) with an EX score of 614. I make $1500 month. I joined that credit union in January because MY credit union of 25 years wasn't willing to help me out. My rate is 3.99

Re: What do you think I can get?

Anonymous — Thu, 24 Mar 2011 14:21:41 GMT

UPDATE:

So I went to the Credit Union, applied for 25K...was denied for length of employment, short history, and they wanted a cosigner... sad day.

Instead I was approved for 9500 w/ 2500 down...so really only 7500. So the plan is to get a loan for 7500 for 24 months at 4.5% and then turn right around and get the car I really want.

BTW, they pulled my experian which happen to be the highest of all 3 @ 689!

bittersweet... but I just hope I can find a car that's at least better than what I have for less than 10K.