topic Re: Loan for used car, low income and score in Auto Loans

Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 17:07:58 GMT

This is my first post, so please be gentle! lol

I am trying to get a loan of approximately $3500 to buy a used car. I have been turned down by Cap 1 and my credit union. I know I am going to have to get a high interest loan, I'm just not sure what site is legit/least likely to screw me over.

My situation is monthly income currently approx. $1500, 2 years at job, 8 years at residence, not self employed but work from home.

Scores I have access to are:

Credit Karma: Trans 623, Equifax 595

Discover fico: 592

Capital 1 turndown letter: Experian 623 on 8/7

Equifax website: Equifax 550, Trans 612, Experian 535

As you can imagine, I'm just a tad frustrated with all the above information. I just want to find a way to get a cheap car with the least painful payment/loan terms.

TIA

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 19:28:10 GMT

Welcome to the board. Is the $1,500 a month gross or net? Also, how much out of the $1,500 goes towards your other expenses? For exmaple, how much do you pay for rent, utilities etc.

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 19:44:48 GMT

That is, unfortunately, gross. I have no expenses other than a couple of credit cards, which I only use for purposes of increasing my credit score.

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 19:48:50 GMT

@Anonymous wrote:
That is, unfortunately, gross. I have no expenses other than a couple of credit cards, which I only use for purposes of increasing my credit score.

What are the limits on your cards? If you have balances, what is owed in relation to the credit limits? How much is the monthly payment on the credit cards? How old is your credit history?

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 20:04:02 GMT

Cap 1 secured with CLIs: $1250 limit, $0 balance.

Cap 1 Quicksilver: $500 limit, $266 balance, $25 mininum payment

Fingerhut: $600 limit, $41 balance, $7 mininum payment

Credit history varies from 1 to 5 years depending on source.

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 21:45:49 GMT

@Anonymous wrote:
Cap 1 secured with CLIs: $1250 limit, $0 balance.
Cap 1 Quicksilver: $500 limit, $266 balance, $25 mininum payment
Fingerhut: $600 limit, $41 balance, $7 mininum payment

Credit history varies from 1 to 5 years depending on source.

Depending on source? If you have a bit of a credit history, why are your scores low? Do you have any baddies? The reason you are probably not able get a car loan is probably because of the loan amount.

What I will suggest is for you to join a CU and see if you can get a personal loan for that amount to buy the car. The only down side is your interest rate will be high.

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 21:57:39 GMT

As stated, my credit union turned me down.

I have a 2-year-old collection for a medical bill and a couple of 5+-year-old student loans (which I am already in the rehab process for).

Re: Loan for used car, low income and score

Anonymous — Thu, 18 Aug 2016 23:43:40 GMT

@Anonymous wrote:
As stated, my credit union turned me down.

I have a 2-year-old collection for a medical bill and a couple of 5+-year-old student loans (which I am already in the rehab process for).

Just because your credit union turn you down does not mean other credit unions will turn you down. There are some CUs that are more lenient than others and they all don't use the same scoring models.

Another thing you can do is go to a car dealership and explain your situation to them. Lastly with scores like yours and income, you can call Santander bank and see what options they might have for you. They finance auto loans for people with not so perfect credit. All the best.

Re: Loan for used car, low income and score

Anonymous — Fri, 19 Aug 2016 00:29:35 GMT

Thank you! I didn't realize Santander did auto loans.

Re: Loan for used car, low income and score

Anonymous — Fri, 19 Aug 2016 05:47:48 GMT

Welcome to the forum & best of luck with your situation!

Let us know the outcome!

Re: Loan for used car, low income and score

Anonymous — Fri, 19 Aug 2016 08:50:02 GMT

This is easy approval, 25-30% down on a 8-10k car as long as it books decent, it should be an approval all day. Rate may just be high but have to suck it up and refinance later.