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Best lender? 640 FICO...no income verification..ASAP!

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Member

Best lender? 640 FICO...no income verification..ASAP!

Hi all, I'm new to myFICO website..but not new to the credit scene.  But, I have question for all you much more knowledgeable/experienced fellows!  Smiley Very Happy

 

My situation:  

Need to purchase vehicle from a dealer that does NOT do ANY financing.  I have a bank account with $700 in it (that I just opened), and I have no verifiable income.

 

My financial info:

Equi- 647

Exper -645

TU -598

 

More info:  

I currently have no open lines of credit as I just escaped the jungles of Maui where I lived the last 7 years (yes, ESCAPED).  I had closed my accounts just prior to that all in good standings.  In the process of re-aquainting myself with society, I pulled my credit report only to find that my 780-ish credit scores had turned into the above listed.  Apparently I failed to terminate my utilities, gas, internet, etc..and they all ran for a a few months (apparently giving the new tenants freebies!!) then got turned over to collections.  It comes up as around $800 total.  I also have a nice long dmv record of almost $4k combined debt..lol..damn that island..no ordinary human would believe the unlucky happenings!!

 

Anyways..I just moved to Colorado in Feb..and was JUST hired to start doing audio/visual equipment delivery and installation (for around $50k/yr)...but I currently DO NOT have an adequate vehicle, have no income verification..and no way to pay my existing debts off (to raise my credit scores) until I start the job..so I am stuck at the current FICO scores..and need to purchase an SUV immediately!  

 

I have found, a 2002 Mitsubishi Montero Limited.  This is definitely the vehicle I want..have a friend who owns one and is a mechanic... The dealer is asking $6,999..but as I said, his dealership offers absolutely no financing.

 

 

Here's my question:  BEFORE I go having my credit pulled by a bunch of lenders...does anyone have a recommendation of a particular sub-prime online lender or credit union that would take me on considering my poor credit, outstanding debts turned over to collections, and lack of income verification?

 

I have searched the internet..but all I find is places that are going to "shop around" which to me, translates as having my credit pulled by a bunch of different prospective lenders.

 

I would try my current bank, Wells Fargo...but they barely wanted to even give me a business account due to being "high risk"  -which I assume is mostly due to the debts with the DMV of Hawaii.

 

Also, it IS a 2002..and I know many CU's and banks won't like that.

 

Someone please point me to a lender who is likely to help.  That way I can have my credit pulled only once...and can be well on my way to getting back to 780+

 

Thanks guys/gals!!

 

P.S.  I will pay the vehicle off within 6 months..so APR does not matter to me in the slightest bit..just need immediate loan before my new job disappears!  I may have fibbed a bit during the interview as to the vehicle I owned xD  Too bad I can't find this SUV at a dealer that DOES do financing...lol.  Another lesson about lying..it adds to stress levels..haha.  Hopefully I get a loan tomorrow morning, get the Montero afternoon..and start on Monday!  YES!?  Smiley Very Happy

 

Message 1 of 10
9 REPLIES 9
Valued Contributor

Re: Best lender? 640 FICO...no income verification..ASAP!

I would say you have no choice but to apply at those sites that shop around.

 

Basically you just need to apply everywhere and go with the lowest rate no doc loan you find.

 

Good luck.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 2 of 10
Moderator Emerita

Re: Best lender? 640 FICO...no income verification..ASAP!

It's more difficult for you because you are starting again so you have to show an ability to repay. For that you need income, which you don't have yet. Normally I don't suggest the following, but your circumstances are quite different: go to a "buy here pay here" type lot.

 

Yes, it's not the best way to go financially, but you have no source of income (yet); difficult credit; and no stability plus your history shows you can disappear for years at a time. That is pretty scary for someone to loan money to you. So since you are starting a new job and will have income, you need to visit a BHPH place to see what they have on the lot.  It sounds awful, but really if you go to one of those places and find a similar vehicle then the BHPH lot will hold the note. It most likely won't be reported on your credit unless you miss a payment. Since you will have it paid off in 6 months it is not a bad solution for a really bad situation. Make sure your mechanic friend checks the vehicle out first. Make sure you make the payments ontime so it doesn't hit your report. At the end of the six months get the title from them, spend the rest of the year getting your bank account established (savings and no OD's) and then buy what you want with regular financing and a vehicle to trade or sell. By then you will be able to show assets, income, stability and you will have a job and established financials and you will be able to get what you want. JMO.

 

Message 3 of 10
Moderator Emerita

Re: Best lender? 640 FICO...no income verification..ASAP!

One more thing - stay away from those sites you mentioned. You will get tons of inquiry's and ultimately, with your particular issues (no income, no established history) you won't be able to get a loan.

 

Those sites are mainly set up to generate leads for both car dealerships and lenders. They are not really the best way to shop for a loan given your particular circumstance. You would be better off, for this first vehicle, to go to the BHPH I mentioned above until you actually get established.

Message 4 of 10
New Member

Re: Best lender? 640 FICO...no income verification..ASAP!

Ok, I appreciate the advice.  I will most likely end up at a BHPH..and I will pop back on here to finish this thread as to what my loan rates end up being.

 

Thanks!

Message 5 of 10
Moderator Emerita

Re: Best lender? 640 FICO...no income verification..ASAP!


@anamolydetected wrote:

Ok, I appreciate the advice.  I will most likely end up at a BHPH..and I will pop back on here to finish this thread as to what my loan rates end up being.

 

Thanks!


^^^Oh, they will be high, for sure Smiley Sad.  But sometimes we have to take a step back to get to where we want to go....

Be careful with the contract at a BHPH. Read it and strike out the conditions that don't apply to you or the purchase. Even when you know you are going to get a high interest loan, it doesn't mean that there aren't other conditions that would make the difference between something you can handle and something you can't handle (pre-payment penalty comes to mind here).

Message 6 of 10
New Contributor

Re: Best lender? 640 FICO...no income verification..ASAP!

I'm sorry but I do not think you have really worked your options and tried really investing much time or money into your credit as well as tried to really view the breakdowns of credit and how it works to really be in a position believing you can have what your wants are and have them met at this point by credit unions banks and or lenders willing to extend credit ( barrow their cash) to pay for your vehicle ( car you will drive around) and I think you are making such a good first step by looking into your situation here to see how you can get pointers. This makes all the difference and the fact that you are truly trying is what shows especially In the importance and dedication you put into fixing things to make them nice and right to get what you want how you want and at the planned time of execution .. Major ability is found here with no extras of having to pick apart the things that are truth and opinion because you can look through fico facts etc on their sight and check the statements made which are facts always backed up by points made using fico's methods etc. At this point you need to look into private loans and personal loans if you maintain a financial status large enough and can demonstrate that somehow there should be no problem with that aspect or having something to put up as collateral or as a fee for loan charges etc. Another good option is the work you do and other types of things that are able to be done while waiting to start the job you have to get to so you are able to expand your contacts where you are now with the networking you may be able to do with those contacts you have created And once again have : well established relations with if the ability is there should have no problem being able to come out with something by end of the week, the fact that fibbed and my opinion is not supposed to be taken wrong but I don't believe in it because it's SO MUCH more living 5 different lives missing all the small important details and never being able to really see and establish who you truly are anywhere because nobody really will know who you are, that is what you are not contributing to others and what your life should be about if you plan to make a difference or some type of impact in anyway for this earth when you leave you gotta change something's to benefit from others you may need more than ones your getting now.
Message 7 of 10
Valued Member

Re: Best lender? 640 FICO...no income verification..ASAP!

Can you buy a cheap dependable car with cash? Many BHPH lots charges way too much in interest, and they do not report to the credit bureaus.

 

If so so, CARMAX could be a decent choice. Someone can correct me if I'm wrong, but they do help out people with less than ideal credit profiles - again, high interest and a tad overpriced cars, but at least they report good payments.

"Neither a Borrower Nor a Lender Be"
Message 8 of 10
Moderator Emerita

Re: Best lender? 640 FICO...no income verification..ASAP!


@Poki wrote:

Can you buy a cheap dependable car with cash? Many BHPH lots charges way too much in interest, and they do not report to the credit bureaus.

 

If so so, CARMAX could be a decent choice. Someone can correct me if I'm wrong, but they do help out people with less than ideal credit profiles - again, high interest and a tad overpriced cars, but at least they report good payments.



Poki, the problem with CARMAX is the lenders they use are all those subprime lenders like Santander with high interest rates and loans designed to fail.

 

I agree with your first assessment. Get a car for cash until he fixes his credit then he can go for something with a decent lender. And the reason I suggested a BHPH is because they don't report to the credit bureaus. That way the OP can work on his credit, have a ride if he doesn't have cash and not have it report XX% rate to the CRA's or more accurately, misreport the payments. Then when he gets on is feet he can go to a real lender and won't have the penalty associated with a subprime lender. (IMO the F&I guy looks at the credit report and will use that tradeline against the borrower if a subprime lender shows up, even if it's paid off).

 

 

Message 9 of 10
Contributor

Re: Best lender? 640 FICO...no income verification..ASAP!

Assuming you have an income and based on the auto loan approvals thread on this site, you should have no problem getting a loan from Toyota.  I know we could all use a little help.  Maybe Toyota will be the answer?  Just do me a favor... don't get a Prius.  Go for a basic high-volume car that won't depreciate rapidly.

 

Your car loan should have a loan-to-value that makes it feasible for the lender.  A large down payment will help, but a large discount off MSRP would be even better.  The logic from the bank is always:

 

"If we must repo, how much money will we get in a worst-case scenario?"  The lender will look for a way to mitigate their damages if you fall behind.  That would mean repo the car and sell it at a wholesale auction.  The difference between what you owe and what it took in at auction is their immediate loss.  The lower the price you pay and the move valuable the car, the more likely you'd get approved.

 

Again, don't think you need a bone-stock crap-box.  You need a mid-line popular car that they know will make it easy for you to afford and easy for them to recoup in case crap hits the fan.

 

This isn't just ideal for your situation.  It pretty much is how car loans are done for anyone without astonishingly perfect credit.

 

Don't tell the dealer you have a credit problem.  They will take that as a reason to jack up their spread on your rates if you get approved.  If you get denied immediately, and if the finance guy has done his job and shopped around, he/she should be a straight shooter and tell you exactly what the problem is...

 

If you get resistance, ask questions such as "will increasing my down payment help get an approval?"  Don't let them steer you into a different car and do not drag the payments out past 60 months because the amortization is useless on a 72 and 84 month loan.

 

In the end, if you get declined... take it as a message that it's meant to be - at least just for now.

4/2012 **Paid off 60 month car loan in 60 months**
6/11/2012 500 Auto EQ (CarMax)
7/2012 **Paid off 60 month VW car loan in 32 months**
8/13/2012 584 TU myFICO
8/16/2012 577 EQ myFICO
8/18/2012 **New $500 CC from WalMart** (1st CC since 2008)
8/19/2012 **New $200 CC from Capital One** (2nd CC since 2008)
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