topic 560 Credit Score auto loan HELP!!!! in Auto Loans

560 Credit Score auto loan HELP!!!!

Micwalk3 — Thu, 20 Oct 2011 19:35:50 GMT

For the past few months I have been working to improve my credit. I was using credit keeper.com to monitor my score and noticed that they use FIKO score (all 3 low 600's) but when i checked my FICO EX score it was 549 I didn't pay for the other two. I do have my capital one cc posting today with a zero balance so hopefully my scores increase more. Now here's my issue I will have app a 560 score and I'm looking for an auto loan.

80K yearly federal employee
13k yearly VA disability
5 plus years same employer
2 credit cards both zero balance 100% available credit
Current debt to income ratio is less than 5%
1,500 to 3,500 possible down payment

I was denied by Chase Bank today. Besides CapitalOne does anyone know who would finance me for an auto loan. I'm really trying to stay away from a buy here pay here place. I will be willing to pay a high % rate. I just need someone to approve me

Re: 560 Credit Score auto loan HELP!!!!

Anonymous — Thu, 20 Oct 2011 20:07:07 GMT

@Micwalk3 wrote:
For the past few months I have been working to improve my credit. I was using credit keeper.com to monitor my score and noticed that they use FIKO score (all 3 low 600's) but when i checked my FICO EX score it was 549 I didn't pay for the other two. I do have my capital one cc posting today with a zero balance so hopefully my scores increase more. Now here's my issue I will have app a 560 score and I'm looking for an auto loan.

80K yearly federal employee
13k yearly VA disability
5 plus years same employer
2 credit cards both zero balance 100% available credit
Current debt to income ratio is less than 5%
1,500 to 3,500 possible down payment

I was denied by Chase Bank today. Besides CapitalOne does anyone know who would finance me for an auto loan. I'm really trying to stay away from a buy here pay here place. I will be willing to pay a high % rate. I just need someone to approve me

Have you tried talking to the banking institution you bank with?

Have you tried a Credit Union?

Have you tried directly with dealers?

I wouldn't apply with all the different possibilities but you can go and speak with them and be honest about why your score is low and hear what the possibilities are. if you keep applying it will just bring your scores down more. You may have better chance with a much bigger down payment depending on the price of the car.

Haven't heard of any one lately being approved with scores that low in a long time.

You may be better off waiting a little longer and try to get your scores up some more. Go to the rebuilding section and see if you can get some idea's to help you rebuild and or ask questions and see if others can offer some advice based on their own experiences and knowledge.

Re: 560 Credit Score auto loan HELP!!!!

MarineVietVet — Thu, 20 Oct 2011 20:37:25 GMT

@Micwalk3 wrote:
For the past few months I have been working to improve my credit. I was using credit keeper.com to monitor my score and noticed that they use FIKO score (all 3 low 600's) but when i checked my FICO EX score it was 549 I didn't pay for the other two. I do have my capital one cc posting today with a zero balance so hopefully my scores increase more. Now here's my issue I will have app a 560 score and I'm looking for an auto loan.

80K yearly federal employee
13k yearly VA disability
5 plus years same employer
2 credit cards both zero balance 100% available credit
Current debt to income ratio is less than 5%
1,500 to 3,500 possible down payment

I was denied by Chase Bank today. Besides CapitalOne does anyone know who would finance me for an auto loan. I'm really trying to stay away from a buy here pay here place. I will be willing to pay a high % rate. I just need someone to approve me

Welcome to the forums.

By this do you mean your myFICO Equifax score? No one has been able to buy their own Experian FICO from myFICO or any place else since February of 2009. Creditors can pull Experian and also there is a CU (PSECU) in Pennsylvania that supplies that information to it's members only.

If that is an EQ (Equifax) FICO then you have an accurate score. But I have to tell you (unless you already know) that creditkeeper doesn't give you FICO scores. In fact there is no 3 in 1 monitoring service anywhere that sells FICO scores.

Edited to add: Also Micwalk3 I removed your other post because it's identical to this one. Posting the same thing across multiple boards can cause great confusion. I hope you understand.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: 560 Credit Score auto loan HELP!!!!

Creditaddict — Thu, 20 Oct 2011 20:42:53 GMT

Why don't you want to apply to Capital One?

Do you have time to work on cleaning up your reports a little bit?

I was able to obtain a high interest loan with Santander at Carmax but had been denied by Santander at another dealership 5 minutes after the approval at Carmax... I had looked at a car at other dealership and when carmax populated the approved with santander I called other dealership and he sent it while on phone to santander and it came back denied instantly... not sure what the deal was but I took it and ran at carmax!

Re: 560 Credit Score auto loan HELP!!!!

Micwalk3 — Thu, 20 Oct 2011 20:44:59 GMT

No I haven't went applied anywhere else yet. I actually thought I would be able to get a loan with Chase until I found out my 600 plus credit score were FIKO instead of FICO. Just contacted Cap One and there CC post to Credit Bureas on the 22nd. With my zero balance hopefully my score will increase 15 to 20 points and that will put me in the 560 range. Then I'm going to apply for Capital One Auto if it is over 560.

Really don't like using dealer financing to me it seems like a big rip-off when have to depend on them. But thanks for the advise. Since I do have a Capital One Credit Card I will contact Capital One Auto and see if I can speak with some one directly explain my situation and see what happens.

Also I'm not a current member of a credit union. But I am eligible to join CDC credit union so I will speak with them also.

Forgot to add in my original post. I had a repo a little over a year a go and a few collection accounts. All of the collection accounts have been PAID with zero balance except one and the repo.

Re: 560 Credit Score auto loan HELP!!!!

Micwalk3 — Thu, 20 Oct 2011 20:52:54 GMT

I stared back in March with my scores ranging from 390's to 420's. I've disputed a number of items and paid off everything except a repo and one collection account. I was able to get a capital one secured card 900 limit and a credit one visa unsecured visa with a 400 limit. I've been riding the bus all summer using the extra money saved to pay off things. Now it's getting cold and was hoping I could get a loan soon

Re: 560 Credit Score auto loan HELP!!!!

Micwalk3 — Thu, 20 Oct 2011 20:58:28 GMT

From all the post I've read Capital One auto min credit score needed is 560 right now I'm around 550. Hopefully after my cap one cc post on the 22nd it will put me past 560 then I will apply. I've seen on this site where people were getting approved with 560 credit scores making less than 40k a year getting 12-14%interest. I make roughly 93k a year. I will see what happens next week after cap one post.

Re: 560 Credit Score auto loan HELP!!!!

grussell70 — Thu, 20 Oct 2011 21:05:29 GMT

hi, you can look for a dealer that uses credit acceptance corp. the interest rate will be high but if you have never had a loan with them before you will probably get approved. normally dealerships that use them have a sign with a blue check mark that says guaranteed approval or acceptance outside.

Re: 560 Credit Score auto loan HELP!!!!

Anonymous — Fri, 21 Oct 2011 22:32:49 GMT

Hey I am not trying to be mean here, but with 93k a year why can't you pay off that repo? That is going to kill you, regardless of your credit card utilization. There will not be many, if anybody that will want to lend to someone with that income but with an open repo only a year or so old. Hang in there. Save every penny, pay off the repo and have a BIG down payment. Good luck with it all

Re: 560 Credit Score auto loan HELP!!!!

kaylord84 — Tue, 20 Dec 2011 03:20:20 GMT

hey what documents did you have to provide for santander i was apporved over the phone thru carmax. I have a car being transfer and will like to know how your process went thanks

Re: 560 Credit Score auto loan HELP!!!!

Creditaddict — Tue, 20 Dec 2011 06:30:55 GMT

Keep in mind regardless of what your Fako or Fico score is, most banks for auto loans and car dealerships are going to pull a "Auto Enhanced" Fico score... I worked and worked and pulled and pulled my reports until I was 8 points from what I was told I needed to squeeze in the guidelines to Tier 3 me for Toyota Lease of Prius (650 on any 3 he would take) I was so close I was like surely if he can pull within the 8 points or so he can get it pushed through just to sell the car. Ran out and drove down to the dealership (I had been talking to them for about 2 weeks about things updating so they knew!) walked in and said here is what I just pulled we are close, lets run it through you... I almost fell out of Chair, My Highest Auto Enhanced Fico that he pulled was a 542 or 536 something around there... I was crushed.

But I had a repo... so I ended up at Carmax and for some reason it pushed through on Santander, I even called back to the dealership I was at right before CarMax (I left him shopping me around with his lenders) I told him just approved with Santander with 1k down for 18k loan at 17%, he called me back about 15 minutes later saying he submitted it to Santander and it was declined! I knew right then and there I better seal this deal up before something happens!!

With scores that low on regular fico and an open unpaid repo, I don't think you will get touched outside of a Buy Here Pay Here.

Re: 560 Credit Score auto loan HELP!!!!

StartingOver10 — Wed, 21 Dec 2011 01:26:54 GMT

Do you have access to additional down payment? With your income you should be able to put together $5-6k in a relatively short amount of time.

If I was in your position, I would do one of two things:

1) Buy an inexpensive car for cash and use it for as long as possible (a couple of years). In the meantime, open an acct with a CU if you don't already have one and have all checks auto deposited into the CU. Make the CU your bank of choice. Then establish a very healthy savings account. So healthy you never need to finance a vehicle as you pay cash for it when ever you need a new one.

2) OR, if you really want to finance a vehicle in the near term (within the next 12 months) save up enough to put down 50% and go to a CU and plead your case to see if they will finance you for something cheap to start out with 50% or more down. Once you show them that the repo is an exception and not the rule, then maybe you can get a higher LTV on the next purchase. Most of the time you can overcome a denial for a collateralized loan (auto loan) by reducing the lenders risk with a large down payment. Where the lender gets worried is when you have a recent history of non payment and you don't have the funds to put down despite a better than average income.

What the lenders are looking at now is a recent repo. How you fix a repo, even if you paid it previously, is by letting lots of time pass and putting down a large down payment so you minimize the risk of the lender. Once you prove yourself again, then it will be easier to get another vehicle loan.

IMO I would stay away from the subprime lenders like Santander - they have a very high rate of repossession partly because their loans are designed to fail. By designed to fail I mean: extremely high interest rate, high payment and a restriction on the vehicle available to you. If you end up with a second repo on your report you will be buying cars for cash for a very long time. Credit Acceptance is just as bad as Santander. Don't go down the path with a subprime lender if you can help it at all. You make enough income to have other choices. Just choose a CU and put down a healthy amount so they very likely will finance you.