Another bad credit auto loan... "Will I?" thread

[Anonymous]

My score is 590

Bankruptcy 7 - 7 years next month

16 lates (all over a year old)

Job 1 held for 9 months, Job 2 held for 1 month

Annual income $37K

2 Auto loans, paid off with no lates

DTI 10%

4 Collections, 3 deleted just waiting for update, I am working on a pay-to-delete on the last.

Car is $10,500 2010 Toyota Corolla with 66K miles priced around $2500 below market value.

I have $3,000 downpayment.

My current car was totalled, and lead me here.

Should I try to finance this car or will I just get denied and it be another thing hurting my credit?

If so, where should I start? I don't have a bank account. Cap one?

If I had a co-signer would my interest rate be better? I would like to avoid a 20% interest rate and have a good co-signer.

Thank you

[Anonymous]

I have had some of the same circumstances and similar scores so perhaps shareing my thoughts will help.  I am sure you will get financed, the question will be APR of course.  You really need a bank account so I would suggest you try a credit union, DCU is a popular one.  Accept the fact that you won't get great terms but don't take that as a long term defeat.  I bought a car with some tough hits against my credit crappy scores and took a 12.57 % loan in just 7 months I refinanced that down to 4.29% by simply doing some rebuilding and of course paying everything on time.  I don't think a couple of hard pulls for a car loan is going to hurt you much unless you have a ton of inquries over the past year. 

Obviously you need a car, I would do the credit union thing, Capital One is also an option for sure but when I refinaced with them they charged me 8.5%, with the same scores 10 days later NFCU gave me 4.29% so my guess is you will have better luck with a good credit union.  I have applied for DCU but they don't like my IRS lien so I have not tried them but many, many people have had fantastic results with them, they may even give you a decent credit card off the same pull.

Best of luck, let us know how things turn out

[Anonymous]

Thanks. I really appreciate your reply. My score went up to 640 transunion and 590 equifax last night. Maybe this will help. I will look into DCU. Thanks again

[Anonymous]

Ned, your new scores are pretty much identicle to what mine where when I refinanced at 4.29%.

[Anonymous]

I am a DCU member and Refi with them. You will need above 620 min EQ to even get in. I was above 640 when I refi with them so I wouldnt try until you get there. Get membership before applying. They only pull EQ!

[Anonymous]

 Ned not sure where you live, but Burbank City credit union uses transunion and would most likely be a good bet.  BUt you have to be able to sign your paper work for membership in person.  Good Luck!