topic Re: Probably a noob question... in Auto Loans

Probably a noob question...

Anonymous — Mon, 26 Nov 2012 00:46:25 GMT

Hello all. I need to get an auto loan just for a super cheap car (like less than 3k) so I can use it to get more hours at my current job and help my family due to an extreme family emergency. I am a waitress so I have pay stubs to prove my employment but most of my money comes from tips. I only started building up my credit about 3 months ago when I got a secured credit card from Capital One but I've taken out student loans since last year. My FICO is about 650, if I recall correctly. My question is: Where can I apply for an auto loan where I'm almost guaranteed to be accepted? Interest rates do not matter to me. I really don't want to apply to too many different places because I don't want a lot of inquiries. Thank you so much!

Re: Probably a noob question...

Walt_K — Mon, 26 Nov 2012 03:01:42 GMT

There's a minimum amount banks will finance. I don't know what that number is, but I'm guessing you're probably below it. When you're talking about a $3K car, you're generally talking about paying cash. If you have to get a loan, you might have to get a signature loan, which is not going to have a great interest rate.

Auto inquiries that occur close in time to each other will be scored as one inquiry. Each inquiry will appear on your report, but FICO will recognize them as auto inquiries and will only score them once. This allows you to shop for the best rate.

As for your income, if you're not declaring your tips, I don't think you're going to be able to rely on them as income.

Start with a local credit union and see if you can get approved there. Once you have that approval, see a dealer and let them see if they can beat the deal you were offered by the CU. But I think you're going to have issues getting less than $3K financed.

Re: Probably a noob question...

jsickz32 — Mon, 26 Nov 2012 15:37:51 GMT

question about this....if you are approved for a used auto loan, they send the check to your name? what if your buying from a owner and not a dealer?

Re: Probably a noob question...

Walt_K — Tue, 27 Nov 2012 19:25:28 GMT

There are lenders that will do private party financing. Ask the lender if they do that.