Do I qualify (Thingy) (Auto Loan Time)

[Anonymous]

Well getting a house right is out of the question.. I have such a thin Credit File (Aside from all the baddies I have had removed) 
I'm currently driving  a 16 year old car, and I'm getting tired of shoving money into it. SO! I've decided.. We're going down the road of Auto Loan!

I'm going to go look at the Car on Saturday. I don't expect Cap1 will be reporting the zero balance at that time. Should I take proof of payoff of the credit cards? 
Or maybe call the credit bureaus? 

HERE WE GOOOO: 

Credit Score: 600-610 (I expect it to go up 20+ points. I just paid off my credit cards to zero balances)

AAoA: File is 7 years old. AAOA is 3-4 years? 

# of positive trade lines: 2 Credit Cards. ($1600 Limit between the two)

# of negative trade lines: 2 - Mediacom (For $175, which I can pay off and get a letter of payoff) and Sprint for $1056. 

Income: $37,700 (This increases every year as we are on union contract with contracted raises throughout the year. 2 raises a year) 

Length of Employment: 8 Months

Previous Loan Experience: None. Only Student Loans. I bought my current car outright. 

Debt-to-Income (DTI): $300 a month. I do not pay for where I live right now. My boyfriend pays the mortgage. 

Year of Car: 2013

Miles:33,000

Purchase/Refinance: Purchase

Requested loan term (XX Months): 60 Months. will consider 72 if ABSOLUTELY Necessary. 

Down payment amount: Would like to put down as little as I need to. But up to $3000

Co-borrower/Co-Signer: Available. Would REALLY rather not use. It's my father, and he really needs to stop pretending he doesn't need a new truck, its in worse shape than my car, but his credit score is in the 800's.. That man is a credit genius.

Other:

[Anonymous]

I don't think there's any way you'll get the benefit of your card being paid down if it hasn't reported. So if you have them run your credit at this point, you'll likely be paying for the high utilization for as long as you keep that loan. I know there's a car you want to see Saturday, but if your cards won't have reported, I'd think I'd roll the dice on the car being gone. When does your Cap One statement close? I don't know if Cap One is one who will update mid-cycle. Chase automatically does if you pay to $0. Discover will report mid-cycle if requested (I hear, never tried it). But I don't know about Cap One. Hopefully someone will chime in, or do some searching. 

For DH's truck, we went with dcu.org last summer. I'd highly recommend checking them out, at least calling them. There's a loan calculator on their site https://www.dcu.org/loans/auto-loans.html#rates

It has you choose excellent/good/below average etc. credit. I called and asked what that meant and was told good started at 620. I'm not sure how accurate that is, but that's what I was told. I know they use EQ, but I can't recall which EQ score. It's not the one you get on myfico monitoring, again some searching may help. But if you're in the ballpark of that number, when you look at different rates you might get, you can see that it could be worth waiting. 

Alternatively, you can just get the car at whatever rate and plan to refinance down the line. I know sometimes a reliable car is more of a need than a want. And sometimes you just gotta do what you gotta do. 

[Anonymous]

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@Anonymous wrote:

I don't think there's any way you'll get the benefit of your card being paid down if it hasn't reported. So if you have them run your credit at this point, you'll likely be paying for the high utilization for as long as you keep that loan. I know there's a car you want to see Saturday, but if your cards won't have reported, I'd think I'd roll the dice on the car being gone. When does your Cap One statement close? I don't know if Cap One is one who will update mid-cycle. Chase automatically does if you pay to $0. Discover will report mid-cycle if requested (I hear, never tried it). But I don't know about Cap One. Hopefully someone will chime in, or do some searching. 

For DH's truck, we went with dcu.org last summer. I'd highly recommend checking them out, at least calling them. There's a loan calculator on their site https://www.dcu.org/loans/auto-loans.html#rates

It has you choose excellent/good/below average etc. credit. I called and asked what that meant and was told good started at 620. I'm not sure how accurate that is, but that's what I was told. I know they use EQ, but I can't recall which EQ score. It's not the one you get on myfico monitoring, again some searching may help. But if you're in the ballpark of that number, when you look at different rates you might get, you can see that it could be worth waiting. 

Alternatively, you can just get the car at whatever rate and plan to refinance down the line. I know sometimes a reliable car is more of a need than a want. And sometimes you just gotta do what you gotta do. 

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I believe One closes the 3rd of the month. The other closes on the 19th. (Close dates are the day before a statement comes out correct?) 

[Anonymous]

I was using them interchangeably. Statement/Close. 

[Anonymous]

Ah then, the 4th and the 20th

[Anonymous]

GOT APPROVED At a local Credit Union in my area at 8.49% with a Co-signer.
Or 15.5% Through Ally bank by myself with $1,000 down.(I had up to $3,000 to put down but I didn't tell them that..) I asked what the difference in payment would be if I put $2000 down. It only changed it $20 a month. So i'll keep the money in my pocket. 


While I know my father would be more than willing to co-sign. I can't allow him to. His truck is falling apart, I don't even know how he drives the thing. 

I think I'm going to with the 15.5% and Re-finance in a few months. What do you guys think? 

[Anonymous]

Going in on Saturday to purcahse the car..

I know this is totally way too soon but how "soon" can you refinance a car? I would really rather not hover around 15% for the entire length of the loan. 

What are the basis for refinancing?

[Anonymous]

Wow that rate is crazy high. Honestly, if I were you, and you can still drive the car, I would hold off until your scores rise some.

There is no guarantee that you can refinance it later. Have you tried Cap1's site to see if they pre-qualify you for a loan and what their rate is? Is this dealer financing or did you apply to Ally directly. I would hate to see you get upside down on the car and not even be able to refinance it later.

[Anonymous]

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@Anonymous wrote:
Wow that rate is crazy high. Honestly, if I were you, and you can still drive the car, I would hold off until your scores rise some.

There is no guarantee that you can refinance it later. Have you tried Cap1's site to see if they pre-qualify you for a loan and what their rate is? Is this dealer financing or did you apply to Ally directly. I would hate to see you get upside down on the car and not even be able to refinance it later.

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I suppose my question is why wouldn't I be able to refinance down the road? This was an application through the dealership financing. 
Cap1 wants me to put $5000 down at 13%

Back in 2013 I was approved at 23.75% 

[Anonymous]

I'm not sure how much equity you will have in the car starting out, but at that high of a rate, you may be eating into it rather quickly depending on the length of the loan (you mentioned 60 months). There are a lot of lenders that only refinance up to 100% of the vehicles value, there are some that go as high as 120%.

Did they tell you your current auto scores they used and how far you are off for better financing terms?