topic Re: Great Credit, but Low Income in Auto Loans

Great Credit, but Low Income

Anonymous — Wed, 14 May 2014 14:41:41 GMT

I am 22, and college graduate with no debt. CK reporting a credit score of 750, I currently have 11,500 in credit, but my gross income is only about 12000. Payments for the car will get paid as my father will be assisting me, but I would like to know if there is any chance a lender would lend me 16000. Thanks in advance.

Re: Great Credit, but Low Income

RushXTC — Wed, 14 May 2014 23:14:10 GMT

@Anonymous wrote:
I am 22, and college graduate with no debt. CK reporting a credit score of 750, I currently have 11,500 in credit, but my gross income is only about 12000. Payments for the car will get paid as my father will be assisting me, but I would like to know if there is any chance a lender would lend me 16000. Thanks in advance.

Whats your real score? CK is a Fako...

You should try to look for a dealership that uses TD Auto Financial, They seem to be easy to get and with low APR. I was approved for 3.29% APR with a low 600's score and close to 30 inquiries, 20 being within 2 months.

Re: Great Credit, but Low Income

StartingOver10 — Wed, 14 May 2014 23:55:00 GMT

The problem with the OP is income.

With an income of $1000 per month and an unknown score, he is going to need a co-signer just to meet the required minimum monthly income guidelines..

OP, strongly consider not financing a car right now until you get into a position of being able to make the payments. One of the other posters is more familiar with what a lender looks at for minimum income per month. Hopefully he will see your thread and respond the the minimum required.

Re: Great Credit, but Low Income

jim44 — Thu, 15 May 2014 19:36:13 GMT

Another aspect lenders look at is the year of the car. The older the vehicle the shorter the repayment terms and the higher the interest rate. Also your income is $12k per year? is that net income? What are your monthly living expenses? While this may not show up on your credit app, lenders still take this into account. What will be your downpayment? if you qualify for say 6.99% interest borrowing 16k with 2k down plus title and taxes, you're looking at a best guestmate of over $300 per month payment. That is just under a third of your income. Unfortunately too, even if you Dad states that he will help with or make your payments, if you default a lender can't require your Dad to make payments. They most likely will insist on a co-signer.

Re: Great Credit, but Low Income

Anonymous — Sat, 17 May 2014 05:58:14 GMT

Thanks for the replies guys, and fico score from discover is reporting a 750 as well. As for monthly living expenses is nothing, as I don't pay bills or anything of sort for cost of living. Gross net pay is 12k a year about, down payment would be $1500, and for help with paymenta would mean I would transfer money from his account to mine via quickpay. Also, I did just recieve a credit limit increase on my Amex to 10g. Much like others, I'm deciding on whether or not to bite the bullet.

Re: Great Credit, but Low Income

Hoya08 — Sat, 17 May 2014 12:53:24 GMT

You may have a credit score ~750, but without a co-signer, you have some hurdles to overcome:

1. Low income: ~$16k annually

2. Thin credit profile (what is your AAoA?)

3. No previous auto loans?

You may want to save for a larger down-payment and have your dad co-sign since he's going to assist with the payments anyway.