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Just Curious - approvals

Established Member

Just Curious - approvals

I'm just curious how people with low credit scores (mid-low 600's and below) are getting approved for auto loans and good apr?  It is great for those people, but I'm wanting to get a new car and I'm too scared to apply with my score because I'm afraid I'll either get denied or crazy high APR.  


For those of you with lower scores, how did you go about getting approved with a good APR?



Message 1 of 5

Re: Just Curious - approvals

Hi, as for myself, I 1st established a relationship with my credit union, I opened a secured credit card $500 and yes I live mostly paycheck to paycheck, I used my sec card to pay everything, then paid it off in full every 2 weeks on my payday and def before statement was cut to ensure low balance reporting.

After 3 months i raised my secured card limit to $1000, once agin ensuring to pay off as previously stated. That same month I opened A $500 unsecured card with my CU. I also decided to hit up Cap 1 and was given $1000 limit. Following month I'm showing $2500 in CL and less than 2% util.

I finally hit up my CU for a refinance on my old, high mileage vehicle, and yay was approved 4k with a 2.49 rate, not bad considering all this was done less than 1 year post chapter 7 BK.

My initial scores after BK were 490 thru 532, 1 year later, after building a relationship with my CU, at the time of my auto refinance my score are 622 thru 656.

Hope this helps and give you some ideas, hope, and perspective. These forums are invaluable.
BK Chapter7 Discharged 6/2012
CU Rewards Secured 1000, CU Cash Rewards 500, Cap 1 Platinum 1000

Starting Score: 643
Current Score: 658
Goal Score: 700

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Message 2 of 5
Established Member

Re: Just Curious - approvals

Thank you for the feedback!  Very helpful!

Message 3 of 5

Re: Just Curious - approvals

Personally I sucked up the dealer financing as I knew they were doing me a favor and my Auto EX was a 551 according to the dealer.  19.3%


8 months in, between increased baseline FICO, and also no longer looking like a first-time auto consumer, I refinanced down to 6%.  


It's not hard to two-step down from a high APR loan, harder is to get that one initially, but as the other poster suggests, wrap your arms around a CU or two (not all are fantastic, helps to try with a few) strategically and try them first; may be able to shortcut the process and do it in one step.


Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)

Take the myFICO Fitness Challenge
Message 4 of 5
Regular Contributor

Re: Just Curious - approvals

I'm fresh off a 7 discharged in November and only approval I could obtain at this point is Roadloans which I will be using at Carmax next weekend.  I will have to eat it and learn from the experience.  My wife was able to purchase her vehicle before our discharge and got hit with a high rate as well.  I definitely plan to refinance this time next year or sooner.

Message 5 of 5