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Can you help me out?

woah_amie
Member

Can you help me out?

Hi everyone!

I'm currently in the market for a new car. Being that I'm 22 and have young credit (but good credit), the dealerships I've gone to have given me some ridiculous monthly payments. I have $3400, which is my trade in value on my current car. 

Every salesman has advised that I cosign with my parents, but they fell on rough times a few years back, so their credit score was damaged. So they can't get approved either.

What's my next best step to getting a better interest rate on a car loan? Open up credit cards and build a higher credit? Don't do anything a hope something will happen? I was thinking of applying for a loan through a credit union, but don't see how that'll help...

Any input would be great! Thanks!

may the force be with you.
Message 1 of 15
14 REPLIES 14
tryingforgoals
Valued Member

Re: Can you help me out?

Go through a credit union. They are usually pretty good about that. I'm younger than you and I got approved through Navy Federal @4.79% and through USAA @8.9%.

Capital One Secured Card (8/2020):$200 Capital One Platinum (1/2021):$200 Chime Credit Builder (9/2020)
Starting Score:
TU:569(1/2021) EQ:529 (1/2021) EX:595 (1/2021)
Current Score: TU:569(1/2021) EQ:529(1/2021) EX:595 (1/2021)
Goal Score: TU & EQ: 700+
Message 2 of 15
woah_amie
Member

Re: Can you help me out?

I went through Dade County Federal Credit Union, but the rep told me because of my fresh credit, it's not even worth trying to apply. 

 

And then again, I am looking at unrealistic monthly payments of $250... I doubt I can get that anywhere. Woman Sad

I can probably sell my car privately for 4k, and get another 1k, giving me 5k down. 

may the force be with you.
Message 3 of 15
tryingforgoals
Valued Member

Re: Can you help me out?

What car are you looking at?

Capital One Secured Card (8/2020):$200 Capital One Platinum (1/2021):$200 Chime Credit Builder (9/2020)
Starting Score:
TU:569(1/2021) EQ:529 (1/2021) EX:595 (1/2021)
Current Score: TU:569(1/2021) EQ:529(1/2021) EX:595 (1/2021)
Goal Score: TU & EQ: 700+
Message 4 of 15
woah_amie
Member

Re: Can you help me out?

2013 Jeep Wrangler 

 

 

Smiley Sad

may the force be with you.
Message 5 of 15
sccredit
Valued Contributor

Re: Can you help me out?

You are not going to get a 2013 Wrangler for $250, even with $5k down.

 

What does your credit profile currently look like?  How many open trade lines?  AAoA?

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 6 of 15
tryingforgoals
Valued Member

Re: Can you help me out?

I mean according to edmunds.com she might...that's if she got 6% financing over the course of 72 months with $3400 trade in and $5000 down. The car being $23,431. Monthly payment being $249.

Capital One Secured Card (8/2020):$200 Capital One Platinum (1/2021):$200 Chime Credit Builder (9/2020)
Starting Score:
TU:569(1/2021) EQ:529 (1/2021) EX:595 (1/2021)
Current Score: TU:569(1/2021) EQ:529(1/2021) EX:595 (1/2021)
Goal Score: TU & EQ: 700+
Message 7 of 15
StartingOver10
Moderator Emerita

Re: Can you help me out?

I think the OP doesn't have any cash down payment at the moment. In her post I understood that she has a vehicle to trade in for $3400. She didn't specify if that is what the dealer offered or if that is a KBB type value.

 

She mentioned that she could sell her current vehicle and then she might be able to put down $5K.

 

OP, are you working? What kind of income do you have? For your first loan you would be better off with a CU, but not all CU's have the same underwriting criteria. Look for one that is encouraging auto loans now.  Also the lender will be more inclined to work with you on your first loan if you put down a larger down payment as a percentage of the purchase price.

Message 8 of 15
woah_amie
Member

Re: Can you help me out?

The $3400 was what the dealer offered for my car. I can get another 1k, and give a 5k down payment.

 

Right now I have a Discover card, with a $750 limit, $200 balance. 

Just got approved for Captial One, with a 1k limit, $0 balance.

 

I work 20-25 hrs a week at 8.50/hr 

 

I've heard good things about PenFed, should I try with them? 

may the force be with you.
Message 9 of 15
StartingOver10
Moderator Emerita

Re: Can you help me out?


@woah_amie wrote:

The $3400 was what the dealer offered for my car. I can get another 1k, and give a 5k down payment.

 

Right now I have a Discover card, with a $750 limit, $200 balance. 

Just got approved for Captial One, with a 1k limit, $0 balance.

 

I work 20-25 hrs a week at 8.50/hr 

 

I've heard good things about PenFed, should I try with them? 


Your issue is income. You don't make enough to support the loan. That is most likely why you were turned down on the loan. The CU/bank/dealer is going to want to make sure you can make the payments.

 

Don't apply to PenFed, you will be burning an inquiry just to be turned down on the income part.

Message 10 of 15
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