600 Credit Score

[aman31]

Any chance of getting approved for an auto loan with a barely 600 credit score? I do have a current auto loan with no missed payments for almost five years. I'm looking at spending a lot to repair current car or trying to trade in.

Thanks.

[Anonymous]

You can get approved but you will be looking at a high interest rate.

[aman31]

Can I get preapproved somewhere? Or would I need to pick out a car first. My current loan is with Capital One and I applied with them and was denied.

[RonM21]

Lol, I got approved for a loan with a 525 score several years ago, a few years before I woke up and started my rebuild. Like Yes-Its-Me said, you can get one, but the interest rate as well as payment may be outrageous.

[Anonymous]

If you have income you can pretty much always get approved.  Just know that it will not be a fun process.  With your scores it is probably best to go to the dealer and let them get you qualified.  Normally I reccomend using a credit union for preapproval but you might not have the scores to get that done.  It probably would not hurt to try though.  If you can get into NFCU I would give them a shot, if not join a good credit union, they consistantly offer the best terms.  If you have to take an high interest to start off with make sure you don't get too far upside down on the loan to value so when your scores improve your in a position to refinance.  I was able to go from 12.5% to 4.29% in about 8 months.  To do that you will need to work hard on improving your scores.  One thing you have going for you is history of an auto loan that is in good standing so you'll get a loan.  Remember dealers mark up interest, they do this particuarly on folks in your situation so don't be bashful about pressuring them for lower interest.

Let us know how it goes

[Anonymous]

Have you checked your auto-enhanced FICO scores?  If your payment history is clean with your current loan, you may have a better score than you expect with the auto one.  This is the one most auto lenders use, in one form or anyother.

As others have said, yes you can probably get approved someplace - I second the idea of having the dealer work on it for you - but you will have a very high interest rate until your scores improve and you can refinance.  Look for manufacturer certified used cars, or used cars still under original warranty, and shop at a lower price point than what you can maximally afford, so that you can hopefully still stay under budget even with a high rate on the new-to-you car... and ideally, make principal payments or clear other debts with the difference on a monthly basis.  If high repair bills are really going to sink you, and it sounds like they might, then it's probably worth the extra interest to try and get into something more reliable with a lower cost of ownership for now.  

[MrsCHX]

My Credit Check Total scores were around 615 for EX and TU and about 570 for EQ when I got financing last month. No preapprovals so I knew I would have to suck it up with a higher rate, and went to a dealer I trusted. Like you, I was facing (additional) hefty repairs on a car that has already exceeded it's useful life (it wasn't financed though). So instead of the small SUV/crossover that I wanted, I went with a small car. 

I have just taken my utilization down from 70% to 30% and will have it to under 10%, and a collection item paid off, within the next few months. Hopefully by the time I have had 6 months of payments I can refinance. 

My rate is 17%. Whew. I figure I can shave an entire year off of the repayment with a refinance. FIngers crossed.

[surferchris]

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@Anonymous wrote:

If you have income you can pretty much always get approved.  Just know that it will not be a fun process.  With your scores it is probably best to go to the dealer and let them get you qualified.  Normally I reccomend using a credit union for preapproval but you might not have the scores to get that done.  It probably would not hurt to try though.  If you can get into NFCU I would give them a shot, if not join a good credit union, they consistantly offer the best terms.  If you have to take an high interest to start off with make sure you don't get too far upside down on the loan to value so when your scores improve your in a position to refinance.  I was able to go from 12.5% to 4.29% in about 8 months.  To do that you will need to work hard on improving your scores.  One thing you have going for you is history of an auto loan that is in good standing so you'll get a loan.  Remember dealers mark up interest, they do this particuarly on folks in your situation so don't be bashful about pressuring them for lower interest.

Let us know how it goes

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Good advice

[surferchris]

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@Anonymous wrote:

Have you checked your auto-enhanced FICO scores?  If your payment history is clean with your current loan, you may have a better score than you expect with the auto one.  This is the one most auto lenders use, in one form or anyother.

As others have said, yes you can probably get approved someplace - I second the idea of having the dealer work on it for you - but you will have a very high interest rate until your scores improve and you can refinance.  Look for manufacturer certified used cars, or used cars still under original warranty, and shop at a lower price point than what you can maximally afford, so that you can hopefully still stay under budget even with a high rate on the new-to-you car... and ideally, make principal payments or clear other debts with the difference on a monthly basis.  If high repair bills are really going to sink you, and it sounds like they might, then it's probably worth the extra interest to try and get into something more reliable with a lower cost of ownership for now.  

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Good advice