Best lenders for low 600's credit score

[Ryanpm90]

Hello,

I am currently looking to purchase a newer vehicle. My credit scores are around 615, however I do have stable employment and $12,000 for down payment which will hopefully offset my lower credit scores. I have had a savings account with Ally Bank for many years as well as Chase for checking account. I have heard that Capital One is good for lower scores, I did have a charge off with them 2 years ago that has since been paid off so I'm not sure they would be willing to work with me. Would it be easier to obtain financing for a new or used car? 

Thanks 

[Loquat]

What's causing your scores to be so low? The forum would need to know what's dragging your scores down before a suggestion can be made.

With scores that low you *may* need the help of a good finance manager to get things done. Having a sizable down payment can help for sure but it'll be depending upon what you're trying to purchase.

Having $12k down on a $24k vehicle is really good...having $12k down against a $60k doesn't have the same impact.

Chime back in if you want with a little more info about your profile and hopefully the forum can start to point you in some sort of direction.

[Ryanpm90]

Thank you for the reply. 

I have an old credit card charge off that just passed the SOL. The limit was $4000 and it was charged off at $3800. That will be off the credit report next summer. 

The other negative is a Sallie Mae charge off that is also past SOL and will be removed from report next summer. 

My positives are a few federal student loans, 17k worth - have a spotlesss payment history, I paid off an old car loan in 2019, only one 30 day late payment on that account. My other two credit cards are below 10 percent utilization and have spotless payment history. 

I am looking to finance a vehicle in the 35k range. 

[Loquat]

$12k against $35k is really good. That will definitely help when it comes to hanging your deal with a lender. You may still need the help of a good F&I manager since you don’t have very many positive accounts reporting.

If you have a good relationship with a local credit union that may be the first place to start. You can also get an idea by trying the CapOne auto navigator.

All hope is not lost…it may just need a little help from a decent finance manager if you can’t get it done with a local credit union.

[SUPERSQUID]

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@Ryanpm90 wrote:

Hello,

I am currently looking to purchase a newer vehicle. My credit scores are around 615, however I do have stable employment and $12,000 for down payment which will hopefully offset my lower credit scores. I have had a savings account with Ally Bank for many years as well as Chase for checking account. I have heard that Capital One is good for lower scores, I did have a charge off with them 2 years ago that has since been paid off so I'm not sure they would be willing to work with me. Would it be easier to obtain financing for a new or used car? 

Thanks 

Cap 1 is very forgiving. have you checked their prequalify page? check the prequal page and see if any cards pop up. it wont affect your score unless you accept the card and then its 3 hard pulls which will ding your score temporarily but that ding will fade with time and you can raise your scores with good credit and payment habits.

keep in mind you have to wait 6 months in between applying for cards

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[Ryanpm90]

Thanks for the reply.

I did the prequalify for their cards, it gave me three different card options. Does that mean they'll likely provide me an auto loan and do I have to wait 6 months now to do the auto loan prequalify? 

[SUPERSQUID]

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@Ryanpm90 wrote:

Thanks for the reply.

I did the prequalify for their cards, it gave me three different card options. Does that mean they'll likely provide me an auto loan and do I have to wait 6 months now to do the auto loan prequalify? 

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I think Auto loans and credit cards are different departments at cap 1.

Just prequalifying has no effect on anything. if you follow through on a credit card application and get approved then you have to wait 6 months to apply for another cap 1 card or its an automatic denial.

Cap one also has a prequal page for their auto loans, i think its called navagator. I'm pretty sure if you hit that prequal you will get an idea where you would stand with them concerning an auto loan

link to cap 1 auto navigator prequal https://www.capitalone.com/cars/?PFFSRCID=S-GG-1234567890K-SEM-0001&external_id=COAF_V1_SEM_BAU_GG_P...