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Credit score in 630s can't get auto loan with less than 18%

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Credit score in 630s can't get auto loan with less than 18%

I'm trying to finance a new car and I can't find a loan for less than 18% APR. New car buyer, little credit history but my score is in the 630s which isn't terrible. 18% seems super high even for bad credit. My friend said he got a 10% rate on a similar loan and his score was in the high 500s. Are the dealership trying to rip me off so they can make more on the back end?
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9 REPLIES 9
Super Contributor

Re: Credit score in 630s can't get auto loan with less than 18%

Not sure.  The question is why is your score 630?  There may be a few things you can do that would have a nearly immediate (30 days or less) impact on raising your score.  The first would be looking at your utilization.  Where does your utilization currently stand?  Can you have the ability to pay off your revolving debt tomorrow if you wanted to?  That could bump your score up depending on where you're currently at and where you can get it to and once it reports (30 days or less) you'd get a score increase.  Are there any negative items on your credit report that are incorrect?  If so, you could dispute them and get them removed within 30 days. 

 

If I were you I'd simply take a step back for a moment and figure out if it's possible to get that 630 up quickly.  If so, it could save you hundreds, maybe even thousands over the life of your auto loan.

Message 2 of 10
New Visitor

Re: Credit score in 630s can't get auto loan with less than 18%

Yes I actually just paid a medical bill in full and they agreed to have it removed from my report. I also have 14 late payments (2 months on 7 federal student loans) and a BS debt from charter I'm contesting. I do qualify for a recent college grad program except that I have negative credit history. Once the medical bill is removed, will the disputed items still be visible or can I apply with "clean" history while my accounts are being disputed?
Message 3 of 10
Super Contributor

Re: Credit score in 630s can't get auto loan with less than 18%

Paying the medical bill and having that removed will help, but if you still have multiple student loan accounts with negative information on them you're still in a dirty bucket and won't see a huge increase until you get rid of your last negative item, thus making all of your accounts "clean."

 

What about your utilization?

Message 4 of 10
New Visitor

Re: Credit score in 630s can't get auto loan with less than 18%

I've been current on my loans for a little over a year (paying $0/month on an income-driven plan) and another medical bill I'm paying $15 a month on but I don't think they report to credit agencies. That's about it.
Message 5 of 10
Super Contributor

Re: Credit score in 630s can't get auto loan with less than 18%

I mean revolving credit utilization.  That's your total credit card balances divided by your total credit card limits.

Message 6 of 10
Moderator Emeritus

Re: Credit score in 630s can't get auto loan with less than 18%

I'm guessing they may not have gotten that from a dealership, 18% is sorta common depending on which dealership you went to.

 

Talk to some credit unions or similar, you should do better than that arranging financing beforehand.




        
Message 7 of 10
Valued Contributor

Re: Credit score in 630s can't get auto loan with less than 18%

Have you tried Cap 1's auto navigator?  



EQ 679 EXP 700 TU 763
Message 8 of 10
Established Member

Re: Credit score in 630s can't get auto loan with less than 18%

Try Capital one Auto Navigator.  My scores are 605 598 630 and we just bought a 2017 Ford fusion for 8% Through Capital one. I have 7 medical baddies and mulitiple lates about 8 months old now. current on everything else. Oh and I also have a state tax lien, but on a payment plan on that. Two paid judgments. Good Luck

Message 9 of 10
Regular Contributor

Re: Credit score in 630s can't get auto loan with less than 18%


@Revelate wrote:

I'm guessing they may not have gotten that from a dealership, 18% is sorta common depending on which dealership you went to.

 

Talk to some credit unions or similar, you should do better than that arranging financing beforehand.


^^^ THIS

 

Always do your financing before you even look at a car.  That way if the dealer can beat it, great, if not, you have the ace in your pocket.  And you're not playing the "monthly payment" game where they sell you a car with an 80 month loan.  Plus if one report is more favorable than another, often times small banks only pull from one bureau.

 

My car loan is in the 7-8% range from a CU, and my score was in the 640s when I got it, with a repossession. YMMV but good luck.

Starting score 3/31/15 CK 552/572. Current score 6/23/19 CK 737/737.
FICO TU (Barclay, 6/12) 779; FICO EQ (Citi, 5/28) 698, FICO EX (FCS, 6/23) 765.
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