Advice on Auto Loan

[Anonymous]

My husband lost his job about 2 years ago and our credit to a major hit. He has since regained employment with a very stable company as have I. Their are a few item on our credit report we are disputing. We gross roughly 6800 a month, we have a mortgage of 1044, auto loan of 535 that we owe 5500 on. Student loan with payment of 300. My husbands Fico is 545, mine 519. We have been working to repair from his loss of employment but it has been a hard road. One account shows past due, 2 show collections, those are the 3 we are disputing. They really are incorrect.  Talked to our local credit union and she said we would need a cosigner for them to consider the loan. Trying to borrow $30000- msrp is 37715. Any idea if there is anyone out there that we would be able to deal with. My parents offered to cosign but would really like to not have to use them.

[xiownthisplacex]

I would wait until the 3 that you are disputing fall off the reports, you should see a nice increase on your score. Because with your current scores, lenders like to see about 40% down. Be patient and wait until they fall off.

[Creditaddict]

What is current car loan on? and what bank and rate is it at?

What are you trying to buy that's $37k?

Apply at Capital One... probably won't like the interest rate but good starting place... dealers tend to work harder for better terms when they can go to bank saying hey they got approved for this blah blah... why can't you beat that!?

Are you trading in this current $500+ car payment car you mention?

[Revelate]

Wait till you get your reports cleaned up if you can, then see where you are FICO wise.

Anyway, 30% is probably more realistic than 40%, I'm pretty close to proof of that; however, while you can afford the payment, that's a lot of car to be paying on post-tax money on the assumption that your "gross" income was factored pre-tax.

I'd honestly look at a cheaper car, it's a non-trivial opportunity cost and as you saw back in 2010, it's better to have a cash reserve anyway.