Hey all, long time lurker, first time poster.
I recently applied for a car loan at Capital One and was unfortunately denied because my income was insufficient. I only take home about 1600/mo but making the payments would be no issue to me.
My dad is willing to co-sign on this loan, so I'm just wondering if I should try with him as a co-signer because of his income? Would it give me a better shot at being approved?
I do have history (bad), and I'm currently rebuilding my credit. I had a chargeoff in 2008 (only one I can think of) and its dragged on until now which I think really hurt my credit score because its gone into collections with three different companies. In 2011 my score pulled was a 475 (I think that might have been an auto-enhanced one too), and some company named Drive was offering me a loan at 14%, so I decided to spend some time and rebuild my credit. Currently, according to creditkarma, my credit score is a 570 and when I got the letter back from Cap1, they said my Ex. score was 565.
The chargeoff I had in 2008 is scheduled to be finished in November, though I could finish it anytime I want (which I might have to do) as theres only about $500 left. The only other derogatory marks are missed student loan payments beacuse after I graduated I didnt have a job that could help me pay it off consistently up until I got my current job which I have been at for a little more than 2 years.
I currently have a Cap1 platinum card (unsecured) which I've owned for 2 months and just made my payment today for this billing statement leaving my card with a balance of just 10 cents.
Well I'm no expert, but I have my own experience to draw from. 9 months ago I was in a similar situation trying to buy a car. The car dealer was able to get me financed at 13.9%, $17000 loan for 72 months. I put $4,000 down-which helped ALOT with the approval. Most people would tell you not to take such a high interest rate, but it was all part of my grand plan to rebuld my credit. Nine months later most of my baddies have dropped off, my credit score went from 570 to 740 and I just refinanced my car down to 3%.
My son who has no credit history whatsoever (21 years old) with the same income as you just got financed for $15000 with an interest rate of 16% through the dealer. Yes, very high, and not the best route to go for most people. However, he should have no problem refinancing in 9 months to a year with a good payment history. You said that you had been offered a loan at 14% some time ago. Sometimes you have to "pay" to establish good credit. Like I said, some people would tell you to drive a clunker until you improve your credit. Good advice. Just wanted to give you a different persepctive. Good luck!