topic Re: Does it seem likely we'd be able to qualify for the loan we're seeking? in Auto Loans

Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 12:50:28 GMT

Good morning, I'm just seeking some advice atm, on how to get an auto loan, with fairly miserable credit. My spouse has credit a bit better than me, probably around 50-75 points higher, due to factors I'm about to explain.

Currently, my "auto enhanced FICO" scores are

Equifax - 478

TransUnion - 491

Experian - 527

I have a very dirty history on my credit report, lots of collections and charge offs from some years ago, an inconsistant job history, and due to a recent string of unemployment where we couldn't afford our credit card payments while trying to keep our utilities on, our rent paid, and our current car loan (fairly small, about $7000 left on it, $178/month). But, we have a combined gross monthly income of about $5900. We currently have 2 past due credit cards, that are.... shall we say being stuburn to work with, to make payment arrangments, and attempts to lower interest so we can actually pay them off, one flat out stopped communicating with us, and closed it, and sent it to collections (that's a store card from Lowes, with a $3300 limit, due to fees and interest, it's at ~$4500), the other is a Discover card with a $13000 limit, that's sitting at near $15000 due to interest and fees. My spouse is going to try to work with them again this week, but that's off topic. We have never had a late payment in the 2 years we've had our current car loan as well.

Currently, we're trying to get finacing to buy a used pickup for me for work, and for various other utility you can use a pickup for. Was originally trying for something around $20k with no down payment, but.... at this point, with our tax return, and needing a second vehicle that will actually serve the utility we need it for, we're looking at a $2000-2500 down payment, on perhaps, a $32000 loan on a truck from Enterprise Used Car Sales.

My question comes down to, with the information I've laid out, do you think it is at all reasonable to expect to possibly be able to qualify and get a loan (I already expect a high interest rate, near 20% I'm sure) for what we're wanting? I'm hoping our income will be able to help overcome some of the issues with our credit history, is that possible? And if so, any suggestions on places to seek credit? Our current car loan is through Capital One, and they won't give people more than 1, Carvana doesn't have anything I'm looking for, and they won't go above $14k either, and NFCU auto-denies me.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 13:49:40 GMT

I highly recommend not buying a $32k vehicle with a bad credit high interest rate. You will be underwater forever and this is a decision that will be crazy costly and can possibly follow you around for a lifetime. We see it all the time here with people that find themselves owing $10k more than a vehicle is worth and pulling their hair out because they have no options and are stuck. Then they buy new vehicles are keep rolling over negative equity from the last however many vehicles onto the loan. It often never ends.

A $32k vehicle is a big endeavor even for someone whose financial house is 100% in order. I would see what you can add to that downpayment and buy something for cash while you work on rebuilding your credit. The rebuilding forums here are great and can get you well on your way. That $32k truck can one day be a very comfortable reality vs being a debt trap today.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 14:23:46 GMT

My concern is, I need something reliable, and I need a truck. We would be planning to refinance it in a year or so. And truth be told, what I'd buy it likely something I'd wind up keeping forever. I don't do disposable vehicles (or disposable anything for that matter), if I buy something, I plan to keep it for as long as possible, which, in the case of a recent truck, would likely be the better part of my adult life, concidering I'm in my early 30's.

The cash option, is not an option here in my area, everyone seems to "know what they got" and want way more than reasonable for anything running, reasonably reliable, and with a title in hand. Most people try to sell stuff around the area, for way m ore than they are worth, and you offer then even blue book, they accuse you of low balling, it's a joke around here. It's pretty much a dealership or nothing, and nothing that fits the bill for my requirments, is ever actually availible when I try to go get it. I've tried sticking below $20k, and going with a 2010 or 2011 truck, and, every single time, there is always some excuse why they don't have it, or why they can't get me setup for it (one of them said they would not approve the sale, unless we bought a $3000 extented warrenty, and required us to trade in our existing car, scummy salesman), and the other, well, we get there and find out "they sent it off the lot, cause it had body damage, and we couldn't afford to repair it and make a profit".

Like I said, we're looking at a situation we can get something that fits our needs, will last 10+ years easy, and with plans to re-finance in a year or so. Plus, I do appriciate the advice, but.... it wasn't exactly what I was looking for, I know buying a $32k truck is a bad idea with a high interest rate, believe me I do, my spouse knows as well (she has worked in the auto loan business before). But, it is a good price, under factory warranty still, and fits literally all our requirments.

[EDIT] - also to note, the truck I'm looking at with this, only has 25500 miles, the warranty is still good even until 100k or 2022 as well. The way I'm seeing this, it's coming out ahead on a truck at was worth near $50k 2 years ago new.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 16:11:41 GMT

If I just answer your original question, I'm going to say that no, it doesn't seem likely you'll get approved for this loan.

You may be able to find a loan from a predatory lender with either 1) a lot more money down or 2) on a vehicle that costs far less.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 16:18:34 GMT

Saren -

I will accept that you may really need a pickup truck. The question therefore is will you be able to afford the one you want. From what you post, if you are credit approved, you will be paying a monstrous interest rate and the finance company will have a kill switch on your truck so that if you are even a minute late on a payment the truck will not start and will be broadcasting its location to your not-so-friendly repo man. The alternative is to take your tax refund and buy a truck you can afford (that means it will not look pretty, will not be a late model and will not have any monthly payment at 24% or higher).

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

DeeBee78 — Wed, 21 Feb 2018 20:51:40 GMT

Chances are you will find someone out there that will approve you for some vehicle, but probably not the one you have in mind. Most likely Santander or Road Loans - They don't seem to care how bad your credit is. That being said, you are at least $20K behind on your credit cards (I'm sensing that there might be more debt), so what makes you believe you can afford an extra $800 a month in auto loan payments?

Not trying to be rude, but why do you need a $32K pickup truck? Even a brand new F-150 doesn't cost that much. You should probably be looking for something a little cheaper if this is a necessary expense.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Wed, 21 Feb 2018 22:07:22 GMT

New F-150's will run you more than 32k, however I do agree that I don't sense a need in such an expensive truck given your situation. Will a lender approve you? Possibly, but you are looking at a 750-850 a month payment with your current scores on a vehicle like that, why not get by with what you have or spend a few thousand on a truck to get you by. That 750-850 every month could then go towards paying your credit card's down in order to get out of debt and increase your scores for a potential future truck. That is a whole lot of money going towards a truck which is an item that depreciates very fast, with insurance and all other cost's associated with owning that truck you would be paying 1000+ a month for something you drive and don't live in, I could never justify that and I highly recommend you don't do it.

A 32k truck isn't a necessity, especially in your situation and it isn't justifiable. A simple 5k used truck can do the same job and last you quite awhile, all while rebuilding your credit.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 01:54:55 GMT

So, if we look at what I've stated in my past comments, buying something from a private party, just doesn't work around here, they want more than double what it's worth, if I'm lucky it even has a title, then they still want KBB price. And frankly, at this point, we're waiting on my spouses parents to help with that **bleep** credit card atm, because it's their fault it is so bad. We booked a hotel room for us, and my spouses mom, and she agreeded she's pay half, she never did, and stuck us with the whole $4000 hotel bill (we needed a 2 bedroom suite, since we were having to stay there for 2 weeks, since my spouse had to undergo surgery, and stay in the area for 2 weeks). We finally got them to agree to start putting money towards it, and, at this point, the Lowes card, they sent that to collections already, and collections is willing to settle and work with me, while Synchonry wasn't.

And, the only other stuff out there, is some bullcrap charge from Verizon I told to screw off, they finally are settling for the actual amount owed, instead of the 10x charge up they tried, and so, even after paying that, since it went to collections, I will need to wait for it to actually fall off my record anyways already. And, some clinic trying to collect on some money, I refused to pay, because I walked out on an appointment due to bad staff, and inappropriate comments and questions. That's, really the only negative stuff on my record. 3 things in collection, 1 we're working with on settling, another making the payment arrangement for the $300, and one I'm disputing. The only thing left of issue is the Discover card, which frankly, isn't our top concern. Getting something reliable for me to drive, that has more then 2 seats, and has room for the stuff we need to move around, or tow, and is comfortable (I have a messed up back and hands and wrists, and despite being a woman, I'm also almost 6' tall, and generally don't fit well into a lot of cars, which are also increadibly uncomfortable for my messed up back, and my hands and wrist for driving) and reliable for long distance road time.

Also, like I said, I was originally looking for something in the $17-18k range, with a 48mo loan, and sure, I'd probably pay about $500/month or so.... it doesn't even matter, that stuff in that price range, does not exist here. Like, at all. So, the only reason I'm concidering the $32k truck, is becuase I'd be keeping it forever, it is still under warranty, fits every single one of my requirments perfectly. To me, spending money on a vehicle I hate, that is uncomfortable, doesn't do what we need it to do, is just a waste of money, where as, sure, getting what I want will cost more, I'm not just pissing money away on a piece of junk I can't count on to last driving to Chicago and back, or even Dallas and back.

Perhaps it doesn't make sense to you, but.... to me, I'm not going to waste my money, and emotional energy getting a vehicle that I will be just getting rid of as soon as I can. I get attached to my things, and I don't let them go, especially something like a vehicle. Like, I appriciate the advice you're giving, but.... I'm looking whats best for me, physically, mentally, and emotionally.

What's funny, Roadloans will give me one, for $14k, at over the state max APR for car loan, offering me near 26%, which is a crock, Santander denies us, I believe because we have an existing auto loan.

Also, want to point out, a $5k truck, that actually has a title, and isn't falling apart, that actually has what I need, doesn't happen here. Plus, I'm looking for something recent enough, I can suppliment the income on my down time driving for like Lyft and GoShare, since I enjoy driving enough. Plus, a $5-6k truck is going to be the age that is going to have a 4L60E transmission in it, and I can't, I have too many bad experiences with them, they are a piece of trash. Had one in my old pickup I no longer have, went through 3 of them in a realtivly short period of time.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 02:03:08 GMT

Here is my advice, because I have tackled it before...

1) DO cosign with your wife/significant other. Even if you both have terrible credit... the bank looks at two targets rather than 1. If the bank is going for target practice, they would like to better their odds with more targets.

2) Do NOT pull the trigger right away on this purchase, and do not go all around town applying for credit. Plan for a 3 months purchase time frame for what I am about to tell you next.

3) Begin disputing the accounts on your credit report. Don't rely on Credit Karma. Head over to Experian and buy all 3 reports for $24. It will show everything. You will be amazed at what they do take off your report... and any score higher than what you have now will drastically improve your odds. If they don't drop off the first time, re-dispute them again and again. Sometimes I send multiple copies of my disputes. Chances of them hitting multiple agent's desks and increasing the likelihood of them being deleted.

Hope this helps. I know you probably want your car ASAP, but think about going from a 24.5% interest rate from Westlake to a 8% rate from Exeter Fiance (or even better if you have good luck disputing).

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 04:06:03 GMT

There isn't much there to dispute at this point, all that is there is legit currently. And in my state, the max autoloan is 21%. I do already plan to co-sign with my spouse, we have for a everything we've applied for, and we need something straightened out by April. Been looking since early January already. I already have my info through myFICO, got the full report for all 3. Going to to the same for my spouse here tonight probably.

Also Zach, thanks for the useful, and practical advice. That's actually helpful for a person that has spent most of her life broke, with bad credit, I swear it seems like I inheareted that from my parents, and they're still alive.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Shooting-For-800 — Thu, 22 Feb 2018 11:36:56 GMT

I would consider buying an older basic pickup for $5k.

A 20% loan for 32k is going to destroy your chances of ever getting you finances in order.

Look at Cap One prequail for info.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 12:30:09 GMT

@Shooting-For-800wrote:
I would consider buying an older basic pickup for $5k.

A 20% loan for 32k is going to destroy your chances of ever getting you finances in order.

Look at Cap One prequail for info.

Capital One is right out for us no matter what, they won't let someone have 2 auto loans through them no matter what. And, I mean, as I said, a refinance in a year or even 6 months would be a huge difference there. And I have also stated, nothing that fits my requirments is availble around here, for that price range. On top of that, even if I were to get one, it would feel as if I'm just throwing away money getting something I don't want, and will be replacing in as short of time as possible. Looking for a cheap local truck that fits my requirments was the first thing I did when I started looking, then I said screw it, with my income, even with the messed up credit, we should be able to get a loan, and apparently, I was wrong thus far.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 12:42:09 GMT

I don't think you'll be able to get the loan. I can't see your original post right now, but I believe your scores were in the 500 range or slightly lower. You also said that you have two credit cards that are not current and total about 20000. If you can't pay those, how are you going to pay for a vehicle with the payment that this one would have? I don't know that a lender would look at your situation and feel like it was a good risk. Do you have a trade in or money down?

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 15:55:26 GMT

You aren't limited to your geographical area when buying a vehicle. If your area doesn't have anything reasonable, look outside of it.

It would be worth even a few hour roadtrip to not buy a $32k vehicle you can't afford.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Thu, 22 Feb 2018 22:43:17 GMT

Implying we can't afford that.... Despite never saying that. Just saying we aren't throwing all our money away at getting the card caught up, and just trying to work out them lowering our rate, and not require $2.5k down to get it caught up all at once. So.... Don't imply we can't afford anything. We have about $1700 surplus each month before credit card payments. And credit cards are being negotiated currently.

And, yes, I am currently stuck having to buy a vehicle local, don't have a way to travel a few hours to get one. To get away from the **bleep** tier pricing, I'd need to go at least 5-6 hours away.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Fri, 23 Feb 2018 00:21:46 GMT

Honestly you seem pretty committed to this path regardless of the feedback you're receiving. If you're unwilling to take feedback to question that does not allign with your obviously established plan, I dont see the point in asking the question. You have to be blunt, a terrible perspective on finances and what you can afford. You cant simultaneously have maxed out credit cards in collection and "1700 left over" . If you're unwilling to realize that your cards are maxed because you living beyond your means, you are just circling the drain and will have no choice outside of bankruptcy before you know it. Brand new full size base model trucks can be had for well less than 32k, but you want bells and wistles you can not afford. I know your not going to take the advice, but you need to listen. You cant afford this truck (in the unlikley event you can even be approved for it). You have to accept your options are limited by your past mistakes. You have to change or save your self the trouble and bankrupt yourself now. Saying you plan to supplement your income using the newer truck as an uber is rediculous, fuel costs and increased car insurance costs (you will have to report the buisness use or risk a claim denial) you will be hard pressed to make actual income without massive time commitments that if you have other jobs are unrealistic. You're too old to be acting this naive but if you insist on waiting to bounce off rock bottom, enjoy the fall because the landing and climb back up will be much harder.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Fri, 23 Feb 2018 04:12:43 GMT

@Anonymouswrote:
Honestly you seem pretty committed to this path regardless of the feedback you're receiving. If you're unwilling to take feedback to question that does not allign with your obviously established plan, I dont see the point in asking the question. You have to be blunt, a terrible perspective on finances and what you can afford. You cant simultaneously have maxed out credit cards in collection and "1700 left over" . If you're unwilling to realize that your cards are maxed because you living beyond your means, you are just circling the drain and will have no choice outside of bankruptcy before you know it. Brand new full size base model trucks can be had for well less than 32k, but you want bells and wistles you can not afford. I know your not going to take the advice, but you need to listen. You cant afford this truck (in the unlikley event you can even be approved for it). You have to accept your options are limited by your past mistakes. You have to change or save your self the trouble and bankrupt yourself now. Saying you plan to supplement your income using the newer truck as an uber is rediculous, fuel costs and increased car insurance costs (you will have to report the buisness use or risk a claim denial) you will be hard pressed to make actual income without massive time commitments that if you have other jobs are unrealistic. You're too old to be acting this naive but if you insist on waiting to bounce off rock bottom, enjoy the fall because the landing and climb back up will be much harder.

Ya'll need to read more clearly. I stated the cards went unpaid when I was unlawfully fired for a job, and on unemployment for 5 months, the unemployment amount, was just barely enough to keep our utilities on, our rent paid, and our existing car payment paid. Credit cards went unpaid, that means they suddenly went into late status, which cranked their interest rate up,had late fees, and such that suddenly we went from being with in our limits, to suddenly being way over. We haven't even used the credit cards in a year. We were making steady constant payments for 2 years on them, suddenly, my job loss happened, and we got screwed, so.... Try not to be a jerk here skippy by paying attention. Before November 2016 the Discover card was under $5k Ballance, but needing to travel out of state for surgery for my spouse, maxed it, and then her mother not paying us back their half of the hotel room for the time period, screwed us over big time. But, all through 2017 we kept paying just fine, until I got fired in August. So, kindly take your holier than thou attitude someplace else. You have no idea the crap I've been been through, nor my spouse.

The reason we haven't given them money yet since I started me new job, 1 - the Lowe's card people told me at that point I had to wait to hear from the collection agency they sourced, and 2 - waiting on my spouse to deal with Discover to try to work out payment arrangements, so we can pay and get it out of default, without having to give them $2500 upfront.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Fri, 23 Feb 2018 04:20:24 GMT

@AnonymousYa'll need to read more clearly. I stated the cards went unpaid when I was unlawfully fired for a job, and on unemployment for 5 months, the unemployment amount, was just barely enough to keep our utilities on, our rent paid, and our existing car payment paid. Credit cards went unpaid, that means they suddenly went into late status, which cranked their interest rate up,had late fees, and such that suddenly we went from being with in our limits, to suddenly being way over. We haven't even used the credit cards in a year. We were making steady constant payments for 2 years on them, suddenly, my job loss happened, and we got screwed, so.... Try not to be a jerk here skippy by paying attention. Before November 2016 the Discover card was under $5k Ballance, but needing to travel out of state for surgery for my spouse, maxed it, and then her mother not paying us back their half of the hotel room for the time period, screwed us over big time. But, all through 2017 we kept paying just fine, until I got fired in August. So, kindly take your holier than thou attitude someplace else. You have no idea the crap I've been been through, nor my spouse.

The reason we haven't given them money yet since I started me new job, 1 - the Lowe's card people told me at that point I had to wait to hear from the collection agency they sourced, and 2 - waiting on my spouse to deal with Discover to try to work out payment arrangements, so we can pay and get it out of default, without having to give them $2500 upfront.

Look - WHY they went into default is irrelevant. All that matters is (a) that they went into default and (b) they still are there. All the good intentions, hard luck stories, coulda- woulda and shouldas mean nothing. Those on this Boarrd with a LOT more experience in this issue than you are united in saying that your expectations are unrealistic, your knowldge of how things work is faulty and it just ain't gonna happen they way you want it to happen. Go ahead - prove us all wrong.

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Fri, 23 Feb 2018 06:03:34 GMT

The point I'm making, I'm not going to sit by and listen to baseless criticisms. I came for an answer to a question, and suddenly everyone else has comments related to everything else, except what I asked. Why are people here so opinionated, that they just feel they need to comment something that has nothing to do with what is asked? I mean, if I asked if it was a good idea or not, that'd all be great advice,but that's not what I asked. I know already it's not a wise decision, but it is what I was going to try to work with since the possibility of the opportunity came up. So, once again, if y'all got nothing related to what I asked, why are you commenting?

Re: Does it seem likely we'd be able to qualify for the loan we're seeking?

Anonymous — Fri, 23 Feb 2018 07:14:19 GMT

It is simply impossible to accomplish progress while our eyes are wide SHUT.

***we all know the saying, you can lead a horse to water...***

There is a lot of great advice that was given on this post.