Declined with 650 credit score Need Advice

[RustyRico]

My credit scores are  TU 650, EX625, and denied respectfully and I'm still getting denied for a car loan.  I do have a repo back in 2010 that since been paid off. I currently make 80K yearly  with less than 10% on my credit cards, one installment loan that is current, and a few paid off collection accounts.  However no one seems to offer me 100% financing.  

I applied with Mercedes and Capital One and they both declined me.  I'm not a member of any credit unions.  So if you can provide me information on getting pre-approved for an auto loan with my creid history. It would be thankful

[pmbrian]

Unfortunately, I think with the recent repo you will have a hard time finding anyone to do this for you.  Have you tried a local Credit Union or bank that you have an account with that you can actually sit down with and explain your situation?

The better way to do it in my opinion is to buy a used car with cash and then save the amount that you would have paid in a payment on a new car until you can upgrade, and repeat this cycle until you get the car you want with the cash you have saved and the value of the car that you bought with cash.

Good Luck

[Anonymous]

Hello Rustyrico,

Due to the recent Repo it will be nearly impossible for you to receive 100% financing. If you are not a member of a CU and not looking to be a member of a CU try your primary bank for an auto approval. You may need to put down 5-10% of the MSRP of the vehicle. Auto loans are not difficult to gain approvals. However, the fact that you want/need 100% financing is hindering your efforts as that option is usually reserved for prime customers.

[pizzadude]

-----> You may need to put down 5-10% of the MSRP.

+1.

I think that at a minimum you should expect to put 20% down, that should make a difference with financing.

[Anonymous]

Plus tag, tax, and other fees...

[aussiesareforever]

Do you need a car desperately now? If possible, you may consider waiting six months to a year before applying again. And I definitely recommend joining a local credit union. They tend to be a little more forgiving!