Bad credit, charge offs, but pre qualified for Cap. One

[Anonymous]

So as stated, I have terrible credit, mid 500's across the board, and 5 charge offs. My credit history is about 4 years old. My car is close to death, and I've got a great paying job now. I'm paying as much as I can into my open accounts, and within the next week will have my debt to income ratio down below the recommended 30%. I had a cap one card, and although it is now closed, at least has decent payment history, and not another charge off. I learned of the cap one navigator on this site, and gave it a shot. I've been pre approved for 33k, and sent in the pay stubs they've asked for. I'm still worried that when I go to the dealership I'll be denied.

Has anyone every been pre approved, and denied? Any other in site would be greatly appreciated.

I have raised my score 50 points give or take in the past few weeks. I am just now figuring out how this credit stuff works.

[Anonymous]

Update, I talked to someone at capital one to verify my employment. She said the offer was definitely real, as long as everything matches with my application. I guess I was sceptical given my credit history. I guess we will see when I go to the dealership.

[donkort]

Make sure to look at your interest rate.  And make sure you could afford the monthly payments based on that interest rate.

[Anonymous]

Thank you

[Anonymous]

Such a roller coaster. So cap one took back the pre approval,and denied me. I sent in my pay stubs as requested. I needed to make 1800 monthly. I sent in 3 stubs, I get paid bi weekly. The my gross was 1400, 1200, and 1100. I make over the 1800 monthly, because my pay rate includes tips, and commission, they only accept my hourly rate. I make more in tips and commission than I do hourly. 

Ive never bought a new car, I've only paid out right for pieces of junk. 

Can anyone tell me if all finance company's do this? Anyone who work on tips and commission successfully used that as part of your monthly income?

[donkort]

I'm sorry this happened to you.  I would be upset, too.

[Jnbmom]

Unfortunately I am guessing lenders most of the time look at your hourly rate and base off that. Tips and commission can vary I suppose.

You mentioned your scores are low correct? If they are in the 500's, even if you do qualify you are going to get an awful rate. I would try to get your scores up a little bit first  and try to find a lender who will include your tips/commissions.

[donkort]

Do you go to auto auctions?  

I used to do that.  You can get decent cars that way.  One car lasted like 7 years.

I do understand you want to get better cars.

You seem like a nice person.  If I knew you, I would want better for you.

[donkort]

If you get a medical billing certificate----or something like LPN or X-ray technician, you can certainly make more than $1,800 a month.

[Anonymous]

I love my job, and I definitely don't belong behind a computer. I break them lol. I'm a cosmetologist, and love the interaction with my guest. I make decent money, when everything is factored in. I was added recently as a authorized user, but that hasn't reported yet. I cut up the cards so no chance of using them, and will add a longer credit history, and about 12,000 of revolving credit to my reports. I am hoping my current vehicle will make it until the end of March beginning of April, and by then hoping my score will be in at least the low to mid 600's. In the past month I've raised it just shy of 50 points. I will be getting a tax return so I plan on putting that on my credit card, which has a 1900 balance. Up until 35 I always used cash, and got my first card at that age. A few more lower credit card offers came in, and I got those too. The lower ones charged off, I couldnt believe how much they wanted, and not knowing better, just let them go. About a month ago, I really started looking into my credit, when I realized my car was dying, and credit was a major factor in getting a new one. You all are absolutely amazing, and I've learned so much on my fico in the past month. I'm nearly 38, and I haven't lost hope, better figuiring it out now, than never. When I was originally quoted from cap one, my interest was roughly between 10-13%. Now because of of the issue with only accepting my hourly they took it back. I realize that is still fairly high, but something I can work with. I just don't want it to be 15-20% or more.